Real estate isn’t the only way of turning a profit and although your portfolio might be excellently diversified, there is always a bit more that you can do to ensure you have an edge over everyone else. Choosing to invest in Web properties might be an excellent decision, especially since website flipping has proven time and time again to produce delightful revenue. The only question is how to go about buying the correct website and selling it at the most opportune moment.
Buying Promising Websites
The process is fairly straightforward. You buy, you grow, you sell. Granted, that’s oversimplified, but if you’re not into building websites from scratch for the sole purpose of selling them, the best option is to identify revenue producing websites that you can improve upon. Be prepared, in such cases, to spend at least 10 times the monthly revenue to assume ownership of the website you choose to purchase.
When searching the internet for the perfect website to invest in, there are countless marketplaces specialized in bringing you what you desire. Prospective buyers are offered relevant details such as monthly income, PR ratings, traffic and much more.
Types of Websites to Invest in
You’d be wise to already know the niche you’d like to invest in before starting to browse around marketplaces selling web properties. Whether you’ve done your homework beforehand and analyzed keyphrases and keyword trends or not, always keep in mind that a website has to remain active for it to continue producing income. There are many options for sale, be it forums, blogs, niche content sites or niche communities, product sites, sales pages or clickbank ready affiliate sites.
You’d do well to start off with niche content sites or niche communities since they usually are the ones to work best. On the other hand, clickbank products need constant attention and, if you aren’t familiar with the niche or don’t have an audience, they will take a lot of work and time. Also, keep in mind that sellers often employ launch tactics before putting a website up for sale, so even if a web property has initial excellent stats, you need to analyze the situation a bit closer.
Communities, on the other hand, allow for a steady and safe income, especially since it isn’t as with blogs, where you need to constantly bring new content provided by an experienced writer. Communities also don’t require you to base your revenue solely on Google or social media platforms.
Always know how much a seller spends on the website weekly and where the time is being spent. Ask about expenses, about reasons for selling and always consider a non-compete when possible.
Decide on a website to highlight your property once you’ve decided to sell it: this website, for instance, is an excellent start if you’ve got a real site to sell. Remember that buyers rarely buy websites on potential alone, so make sure that your site is well structured and is making constant monthly profit when deciding to part ways. Experienced buyers will attempt to convince you that the site is worth less, so after analyzing the money your site is making and the invested time in it, don’t go back on the price you’ve set. A fair price is somewhere along the lines of 10 to 12 months income, depending on the time you’ve invested to bring the site to where it is. If you’ve managed to create a site working on complete autopilot to produce revenue, then the price might go up.
Prepare yourself for the tons of questions awaiting you and prepare income and traffic stats so that you’ve spared yourself the time after listing the website for sale. And remember, most buyers want sites that are already making money, so be sure to offer something solid before listing your site for sale.