Well I have made a few blog entries already to help you flip websites. Then I realized I haven’t defined or explained to those who don’t know what website flipping is. So I thought I would correct this with an explanation of the next big thing on the internet.Definition 

I was going to grab the definition from Wikipedia only to be surprised at the fact they don’t have one. That shows how under capitalized and misunderstood this industry really is. The term flipping comes from the real estate industry where investors will buy a property, renovate it to add value and then sell at a higher price. Website flipping is essentially the same process except someone buys an established website, adds value to it and sells the site at a higher price.

What It Involves 

1. Buying - You must find a suitable website to buy. Do not be fooled, whilst this sounds easy, it is the most important step and also the one that most people do incorrectly. For tips on finding a suitable site to buy click here.
2. Enhancement - You must add value to the site. Generally you must make changes that increase traffic or income. Increasing either or both of these factors, significantly will almost guarantee a profit (if you paid the right price originally).
3. Selling - You must now sell the website. Generally it would be best to sell the site at the same place you bought it as the market value that determined the price there will be the same. So any value added to the site, in theory should create a higher market price and deliver you a profit.

Benefits of Website Flipping

There are two main benefits that website flipping has over other industries.

1. A low capital investment in comparison to real estate. This allows the average internet entrepreneur to actually enter the market.
2. Income possibilities whilst “enhancing”. Although other investments are usually stagnant, not making any money until the investment is sold a website is completely different.  When buying a site with a consistent income you can profit while you are enhancing it and then sell it off for more than you bought it for.

Types of Website Flipping 

1. Start Up Flipping

Whilst not necessarily “flipping” it is still a valuable business model that should be discussed. Essentially this is to build a website from scratch, do some promoting and then sell the site once it has traffic. This method takes more time but gives greater control on choosing the direction, setup and interest area of the website.

2. Buffett Flipping

I have coined this term after the great Warren Buffett, the worlds greatest Investor. Essentially it involves buying a website for its income and using it as a long-term investment. So the investor will hold onto the site for multiple years profiting with its income capacity and then selling once the site reaches a market threshold for an increased price. This generally requires more money and takes plenty of patience.

3. Standard Flipping

This is the most common flipping business model. Essentially you buy a fixer upper website with some potential, enhance it as quick as possible and sell it at a higher price. The choice of website is the most important element here. 

The Market

From all the information I have seen, website flipping will be one of the fastest growing online markets in the coming years. Essentially the market always existed but was just overshadowed by its compatriot domain name flipping. With the downfall of the domain flipping industry, website flipping is poised to become the next big thing.

There are now a lot more marketplaces to buy and sell websites giving greater market appeal and exposure. Like online auctions, website flipping will grow exponentially once the market understands and trusts the industry. It was released by the co-founder of Sitepoint that its website marketplace had 4 million dollars worth of websites listed in February alone which website flipping was surely a major part of.

So I hope that has helped you understand the industry a little better. Feel free to ask questions, get the latest information and learn more about the industry on our Website Flipping Forum

 Adam Diver

Related Posts:

• One Tip to double your Flipping Profits!
• What you need to find to be a successful flipper
• Why you should be flipping websites!
• How To Buy A Successful Website Investment - The Buffett Way
• Can’t sell your site? Stop hiding something