Television is a great place to learn about the art of “flipping” – whether it’s flipping a house, flipping a car, flipping a bedroom, you can flip just about anything, including websites. Before diving in, however, it’s always best to research as much as possible and consult the best eCommerce business broker you can find, one with many years of experience and a list of satisfied customers with glowing testimonials.
The first item on the agenda when you want to flip a website is to find a website to buy. A knowledgeable eCommerce business broker that knows how to sell websites can help you with this problem. The site should be salvageable; it should plant the seed in your mind of how you ultimately envision it.
The second item you can discuss with an eCommerce business broker is the actual sale. When you find that perfect website you want to flip, ask some necessary questions.
• How much work does the site require, and are you willing to put in the work necessary?
• How much is the site selling for, and how much do you hope to eventually get out of it after it’s been flipped?
• How much do you want to spend on the site, what’s the limit to maximize your profit?
• Is there a good market for this type of site? Will the market still be good when you are ready to sell it?
Selling internet businesses is in many ways the same as selling anything else. It needs to appeal to the buyer. As a website flipper, you enter into the sale with the idea that you will improve the site enough to make a profit. How do you improve a site? Through search engine optimization, SEM, and/or a complete website design overhaul. For a complete understanding of how to improve a site during a website flip, seek out an experienced eCommerce business broker.
The final step in website flipping is selling it. Because eCommerce business brokers know exactly how to sell websites, it’s best to contact one so they can help you find the best market and the best buyers. They are also keenly aware of the intricacies of lending, so your buyer will be in a better place to fund the purchase.
Some people have looked at website flipping as a way to make money on the side, while others view it as a career, similar to how the most successful house flippers operate. If it sounds more complex than house flipping, keep in mind this can be a very profitable endeavor for those who know what you’re doing. Beginners have a lot to learn from an experienced flipper.
So, what is website flipping? It’s the process of buying an existing website, improving it, and then selling it for a profit – virtually the same process as flipping houses.
Just as there are different kinds of houses to sell (single-family homes, condominiums, townhouses, etc.), there are also different kinds of websites to flip. They can include:
• eCommerce websites making a solid profit
• A new site the seller launched
• Smaller sites with solid growth potential
Even websites that haven’t yet generated high sales from their customers can be viewed as being ripe to transform into profit-generating machines, which is why a growing number of investors track online businesses that are up for sales, looking for opportunities to take advantage of a profitable flip. Plenty of investors today make a full-time income from website flipping.
Website flipping is also considered a relatively low-risk investment, particularly if the site already has a strong customer base and makes a profit. If the business has good scaling options, the new owner can focus on growing the company and then selling it at a higher price. Investors naturally gravitate mainly to websites that are:
• Earning a profit
• Have an established customer base
• Have a strong digital marketing plan
• Have good relationships with suppliers
• Have clear scale opportunities
What’s the main benefit of trying to flip a website? First, there is often high demand among other investors and aspiring entrepreneurs to find a successful eCommerce site to acquire and scale. Some entrepreneurs are attracted to newer websites that are starting to have an impact but haven’t reached their full potential yet. These sites can be purchased at a reasonable price and have laid the foundation for future success, which makes them very attractive.
Website flipping is also an easy way for an investor to operate a flexible work schedule. Buying an existing business means they don’t have to spend long hours creating their own site and then trying to grow it while competing against well-established rivals. This is a fast and smart shortcut to long-term success. Building a website from scratch is not, so website flipping can be the ultimate profitable stay-at-home job.
So, website flipping can be very profitable – assuming the investor knows what they’re doing. In addition to scaling the website they just purchased, the new owners often boost sales and revenue in additional ways, including:
• Increasing income from ads
• Drawing earnings from affiliate campaigns
• Selling digital as well as physical products
These methods have proven to be a smart approach to increasing the value of the website, which means the owner can then sell it for a higher price down the road—the profitable flip.
There are risks involved with this type of business venture. It’s possible that customer preferences could change, and the site would start losing money, or the new owner could face unexpected problems such as issues with suppliers or deliveries.
Still, if this business model is handled correctly, there are probably significantly lower risks involved.
Besides, in addition to scaling the company, the new owner can also focus on:
• Increasing its organic traffic
• Giving the site an enhanced design
• Updating the SEO programs
• Expanding their marketing tools
• Expanding the store’s sales channels to include popular platforms such as Amazon, eBay, Etsy or Walmart
With these options available, many investors look to purchase low and sell high, looking for undervalued gems that have a clear growth potential. Once they’ve purchased a website like that, the next step is improving it so it can be sold for a profit.
Some investors have made millions flipping websites, and it’s not that difficult. It can be a great way to learn about business, it can be done part-time or as a side hustle.
So, what are the smartest ways to buy, and then flip a website?
Here are some tips for successful website flipping.
• Do some research on competitors, including websites currently serving your market. This gives you an idea of what works for them, and where you can make improvements to your new site.
• Increase your site’s value by focusing on improvements and scale efforts after purchasing it
• Boost the site’s traffic by optimizing the pages to improve search engine rankings, and promote the site on social media
• Refresh old content and create new pages to attract visitors, including launching a blog
• Enhance the user experience by improving site speed, updating the design, and adding new, appealing site features
• Grow your revenue by scaling the business
Once you’ve improved the site, create an appealing sales listing that prominently features the improvements and updates you made.
Continue to optimize the site even after you’ve listed it for sale.
Those who have completed several flips develop a good sense of what works and what doesn’t. Here are some tips for ongoing success in Website Flipping.
• Continue to direct your profits into buying new sites, which expands your portfolio.
• Create a standard process for flipping websites that you know works, including a system that can help you streamline this process
• Forget flashy upgrades and focus instead on improvements that increase your organic traffic and the user experience
• Don’t try to do everything yourself. Bring skilled help when needed.
• Keep learning. The technology within the eCommerce world keeps changing rapidly. Evolve with it.
When it comes time to set the right price for your website, get the assistance of a skilled and professional business broker like the ones at Website Closers. Our brokers have decades of experience in selling every conceivable type of online business, and collectively they have sold more than $1 billion in new deals. The first thing our brokers do is provide your business with a valuation to ensure it’s priced according to what the market dictates today.
If you’re looking to sell your first website, you may be wondering about the best practices for doing so. The absolute best place to start is by reaching out to professional business brokers for guidance.
By contacting the experienced Business Brokers at Website Closers, we can review your website and provide you with an accurate estimate of its value. That valuation will reflect where the market is today, and ensure the business is ideally positioned to sell, while still working to get you top dollar for the company you have been operating so profitably.
The brokers at Website Closers can assist you in finding a qualified buyer, help demonstrate the best way to market your site, and protect your interests through the signing of a Non-Disclosure Agreement with all prospective buyers.
Our brokers can also be at your side at the negotiating table, and oversee the Due Diligence process once an offer has been made. This is a smart way to ensure your needs and interests are protected throughout a very complex process.
Your chances of getting a better price, and a better deal, increase significantly when you work with an experienced advisor who knows the sales process for an online business and can protect and safeguard your interests.
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