It is very apparent that there is a growing market for website buying and selling for profit. The benefit is that you don’t have to be a big enterprise to do it, yes anyone can use this to make a profit. The goal of this method is just like any other investment, think of it in terms of real estate, look for websites with potential that you will be able to up the value for and profit from.
Buying a site which is valued less than it should would not give you instant profits. Many buyers are misled by this thought process, that if they purchase a cost efficient site, they will be able to simply sell it later to profit. This is wrong for 2 reasons, one of which is that you might make a loss or possibly a very small profit, neither of the two is something you should aim for. The real question that should be going through your mind is do you have what it takes to allow this website to reach its full potential?
Try and compare this type of business with selling houses, when you buy a house you do not expect to make a quick buck buy simply buying a couple of pieces of furniture, adding a few curtains and at the same time managing your day job. You will need a team of people to help you. This can be comparable to website flipping, to make a full time passive income a lot of different aspects need to go into your site. These can include things such as SEO, content creation, social media optimizing and many other things, this can be overwhelming and can be a full time job. If you wish to go it alone then you need to seriously consider the time you will have to do this.
10 steps to making money buying and selling websites
Let us go back to our previous question; do you have what it takes to take allow the website to reach its full potential?
I believe I have explained the level of commitment needed to make this type of business work, and if your still reading then you are obviously still interested. I present to you the 10 steps that need to be considered when buying and selling websites.
1. Time and money
Do you have money to spend? Even the safest investments will involve some form of risk. If there is money you can’t afford to lose then don’t spend it. Like most businesses this is not a guaranteed business. Do you have enough time to learn everything required in this business, do you have the required skills to be successful in this business? If the answer to all those questions is yes then let’s move on to number 2.
2. Understand which sites are likely to grow
You will need to do your research, sometimes a bit of trial and error will be involved. The goal here is to understand what type of sites have potential and are worth your time and effort. Try and find out which niches and site types have a constant demand for. Try and focus your attention on niches that are timeless and won’t loss relevance due to trend changes. Also stay clear of things that have the potential to be shut down because of legality issues.
3. Buying a non-established or an established site
There is a number of positive aspects to purchasing an established site, one of which is that an established site will give you a history of its performance. What this will enable you to do is evaluate, you will also have most aspects of the site sorted out so it will be much easier to allow the site to constantly give you income. In other words you won’t be reinventing the wheel, just tweaking it. Also don’t just go for a site simply because it is established, go for a site you have some interest in as this will help keep you motivated.
4. Where can you look for websites to buy
When on the hunt for buying websites, give yourself realistic expectations when browsing through the potential candidates. A reasonable amount to purchase a site for is around 15 times the profit monthly average, for a small site which is less than 50k. if you can see growth potential in a site then you can really hit the jackpot, but this will depend on a number of factors such as you doing your research, and so on. Sites where you can buy sites on are as follows:
5. Conduct quick site analysis
It is important to be able to spot any red flags, as this will help save you a lot of work. A lot of the time you will find a lot of websites that are not worthy of considering, with experience you will get better at filtering these out. When you see a site you want to pursue firstly ask yourself a few questions about it. What is the reason to selling it? Any dying niches etc. you will want to avoid.
Will they be able to give traffic information? Look for evidence that the traffic information they are giving you is reliable.
Is the seller trustworthy? This can be as simple as doing a google search to make sure there is nothing shady about the character you are buying from.
6. Conduct thorough site analysis
If the site has make it past your initial test, it’s time to dig a little deeper. You should now be focusing on these four aspects
Analyse the sites traffic, where does the traffic mostly come from. Check out the sites that are linking back to the site. Take note of whether or not the seller owns the link back sites too. Ask if the links will remain after the sale.
Ask for proof of revenue. One way to get proof of this is to ask the seller to give you their URL channel reports from their Google Adsense Account.
Converse with the seller. A lot can become apparent after a simple conversation with the seller, building a relationship with the seller can help build trust and reinforce your buying decision. It can also give room for negotiations on the price of the site.
7. Making a reasonable offer
If you think the time has come to make an offer then go for it. A typical strategy is to offer 70% of the asking price and go from there. If you unveil negatives about the site, now is the time to bring them up as bargaining leverage.
8. What to do after you get the site
Now is not the time to sit back and relax. There’s still work to be done, initially you would want to try and make the website as passive as you can.
Build traffic to the site and monetize it, it might be necessary at this point to hire someone to do the job for you. It might benefit you more in the long run if you do not have the skill set to improve the site.
9. How to sell the site after you have improved it
At this point you should at least congratulate yourself. You have achieved your goal, you have taken a website and turned it around to a thriving investment opportunity. You should ask yourself these specific questions to determine if it’s now time to sell.
Have you exhausted all methods of monetization and traffic building? If not then there is more work to do. How much of your initial investment has been made back? If you sell the site now, have you made a reasonable profit?
10. How to sell your site.
The cards have flipped and now you are the seller. You should be expecting future buyers to experience the steps you have taken yourself. What you should now do is make the website as attractive as possible to potential buyers. You can sell your site on the same places we looked at on step 3.
After the site is sold there’s no reason to stop there. Do it again, and again, and again. There’s not limit to how much profit you can make from this business, as long as you play smart and put in the work.