Updated: Mar 9, 2021
If you think flipping houses was profitable, wait till you hear about flipping websites. What does it mean to flip a website? You ask? Let’s discuss this and why it can potentially be such a lucrative stream of money, especially for those working from home during these pandemic months. We will also discuss the top platforms, Flippa and Empire Flippers, and why buying and selling on these platforms is so beneficial.
What does it mean to flip a website?
The phenomenon of flipping websites is very similar to that of flipping houses. As future blog posts will touch upon often, you can flip any asset of value. The idea is to choose an undervalued website, buy it, improve it, and then sell it at a higher price. The differential between the cost and inflated value of the website will be your profit. The website is your asset that you need to build and grow with plenty of TLC. Here are some tips on what you should focus on while doing so:
Money, Knowledge and Time Constraints
Keep in mind, flipping websites is not as passive as other income ideas on this blog. At the end of the day, this is an investment that is not void of any risk, hence it is important to assess the finances available to you and buy websites that you have a good understanding about. For instance, if you have a lot of knowledge regarding sports, maybe you should buy that football blog and not the online retail store selling dresses.
Furthermore, like a venture capitalist, it's best to diversify over several websites, with the hope that your hard work will make one of them a huge winner. Not all of them will be profitable, but don’t lose hope. Like a house, websites often get more valuable over time as traffic grows and a community blossoms. This website will be your baby, which you will need to nourish and put the time in. If you don’t have the time and knowledge to develop it, don’t go for it!
Flippa and Empire Flippers
When entering into the website flipping business, it is important that you do your research and ask the right questions. What is the proof of the revenue stream? Is the seller trustworthy? What is the true source of its traffic? Apart from this, it is important to assess specific key performance indicators (KPIs) for your website, like- How much revenue will this website generate? What is the frequency of revenue streams? and so forth to assess its progress and future development.
The two best platforms that facilitate this business model are Empire Flippers and Flippa Marketplace. It is always a good idea to make use of these platforms for your business as they do a thorough vetting process. Without their services, you are more in danger of buying a scam.
Flippa is ideal for small businesses and investors just starting to get their feet wet, since they sell less expensive websites with a lot more upside. Flippa boasts a sale of more than 250,000 websites since conception. As it says on their site, "Buy an online business, become an acquisition entrepreneur, and invest in digital real estate."
Empire Flippers sells much more expensive websites. It's not uncommon to have sites on there selling for over $1 million dollars because they generate $20,000 dollars in monthly net profits. Empire Flippers provides a location independent experience, with extreme authentication to safeguard both sellers and buyers.
The Corners of the Internet
There you have it! With the world continually using the internet for just about everything, it only makes sense to own assets in this space too. Even today, there are plenty of corners of the internet that could use your special touch and know-how, and consequently make you a healthy profit.
In a future post, we will delve more into how to buy an established website for immediate income. This would be a more passive endeavor, similar to acquiring a rental property. Happy investing!