Tips on buying first site to flip
  • Hi,

    So I just purchased Thomas's Killer Flipping ecourse the other day, and I must say I'm really impressed by how he laid out the course. I never thought of site flipping as a business opportunity before, but I'm seriously considering doing this after reading the ebook.

    I've been looking at websites from DP since yesterday, but I find it hard to actually pick one website to add value to. I know Thomas's book covered the buying checklist pretty well, but I just need some guidance on what kind of websites to buy.

    There are just literally so many types of websites on DP, which is why it's so hard to choose. However, since I'm only getting started and have absolutely zero experience in site flipping, I really need the guidance.

    I did find some sites claiming to have decent traffic, but they have not properly monetized their sites. I thought about buying one of those, but I do not know how to modify the contents of a webpage, nor do I know how to place necessary ad codes and other things needed for monetizing.

    So, I was thinking about buying a website that already has all the monetization in place, and to just outsource the SEO process to get it to rank and to increase its traffic. Is that a good thing to do?

    Thomas says it's easier to monetize a site than to build traffic. So, I'm on the fence here. And I'm also wondering what kind of sites really do sell on Flippa?

    Are they niche sites, e-commerce sites, directory sites, or anything as long as they make money?

    I know I just wrote a really long post, and I want to thank everyone who would be interested to respond. :D

    Regards,
    Fayanne
    Post edited by Unknown User at 2010-10-05 11:13:02
  • I don't know the amount of money you have available to invest, but let's say $150,-
    You will be able to spend $100 on the purchase of the website and $50,- on flippa listing fees.
    Let's say you want a 75% ROI, that means the website needs to be auctioned at flippa for at least $262,-

    Quick summary:
    Capital: $150,-
    Listing fees: -$50,-
    Purchase fee: -$100,-

    ROI: 75%
    Value at auction: +$262,-
    "Profit": -$150 + $262= +$112,-

    To sell a website at $262,- it seeds to make roughly $262,-/12months = $22,- (estimate, true value differs per website).
    In order to pick a website, go to flippa and search for auctions that ended at around $260,- and try to filter popular type websites that go for this price (article directories, forums etc.) and when you are at it, see if you can find out the average revenue/profit a site is making monthly.

    Now that you have found out the auction price ($262,-), the amount of profit it needs to make in order to sell at desired price ($22,-) and popular type of site that are being sold at flippa for the approx amount you are looking for (article directories, forums etc.), see what you can find in DP marketplace.

    Always bargain, if a site is already making $15,- you should almost always be able to get it on DP for around $100,- if you know how to bargain.
    Always make sure before bidding or buying, you have a gameplan. How will you add value, how long will it take, how much work does it take etc.
    When selling on flippa, almost always profit is the most important thing, forget about potential and all that crap, it doesn't mean a thin to a buyer.

    So try to add quick revenue to the website by selling link spots, driving more traffic, anything to add revenue will do.

    Hope this makes sense, if you have any questions, shoot!

    Regards,
    Mark

    PS
    I didn't take labor in account really, only in the high % of ROI, but if you want to get serious, you will need to calculate the price you want to sell for more accurately.
  • Hi Garner - welcome to the site!

    Mark has broken it down well. Just add a few things for you:

    #1 - Be vary cautious on DP. There is a lot of known scammers over their. Also lately the income figures quoted are usually "Projected" or "possible" earnings and not real. Make sure you communicate with the seller before bidding or sending any money.

    #2 - Start to spend some time at flippa.com - watch how the bidding unfolds on the type of sites you are thinking about buying/selling and study what they finally sell for. There is a recently sold section that you can see what people are paying for sites. This will give you an idea of what you can invest in a site yet still have room to make some profit.

    Good Luck!
  • Thanks for the advice. :) I think I'm going to spend more time on Flippa to see what sells and copy their strategy. Yeah, some sites on DP do look suspicious.

    Another question though. Do you recommend getting a site with proven revenue for a higher price or getting a site with potential revenue for a lower cost? Which is better for flipping in your opinion?
  • Forget about potential revenue, if the seller really emphasizes on the 'potential' something isn't right there.
    Think about it, if there is so much potential why didn't they monetized it themselves and get a price for the website 5 times greater than they would selling only 'potential' ?
    Either they don't know how to monitize (meaning they can't judge about potential at all) or it they are just full of it.

    So, go for the ones with revenue, at least for quick flips, when you get a business going, you can think about purchasing and developing site with real potential.

    Regards,
    Mark
  • It really depends on a case by case basis. When you are just starting out (until you learn how to "monitize" - make money/income from a site) it isn't a bad idea to buy sites that are making a little income if you don't have to pay too much of a premium.

    As important (if not more important is some cases) is TRAFFIC. How much is there and where is it coming from ? Even if a site does not currently have income, at lease if there is traffic you can convert that traffic into income.

    Never buy a site on just it's "potential" - every site has potential.
  • Thanks again for the great advice, guys. :)

    So, I guess the best site to flip for a beginner like me would either be a site that's already making revenue or a site with high traffic?
  • Absolutely, for example, I just picked up a website making $20 something a month for $80,-, this makes a perfect quick flip.
    Search for those, or ones with high traffic, but make sure it is real traffic and not bought traffic to increase Alexa etc.

    Regards,
    Mark
  • From the DP marketplace, directory-type websites have high traffic, but I notice that they usually don't generate much revenue, even if they already have Adsense ads. Are directory-websites hard to monetize? Also, how do you check if the traffic is real without Google Analytics, most ads on DP do not have any.
  • I always ask for proof of traffic, this proof must contain: country of origin and source (ie search traffic, direct traffic etc).
    If a lot traffic is direct traffic and the countries of origin are India, Pakistan etc I get suspicious.

    Directory websites...hmmm... I guess featured link sales can provide revenue when the website has got some PR and traffic. Otherwise adsense will work.

    Regards,
    Mark
  • Actually the traffic from directory sites are usually from India. Is there something negative about traffic from those countries?

    Are turnkey sites really hard to sell? I'm tempted to just grab one from the Warrior Forum and flip it on Flippa. :)
  • Hi,

    It is not always bad news because most of these sellers are Indian themselves and they attract Indian traffic somehow but I just get a little bit more cautious. If it is converting into revenue there is no problem but if there is adsense onsite and there not making a dime I'll probably walk away.

    I don't think it is hard to sell turnkey site, as long as you buy cheap. Check out one from me http://flippingnetwork.com/forum/showth ... p?tid=1467
  • Congratulations on your fist flip. :) Just followed the link. So, was articlecress.com a turnkey site? But it was already making $20/month right?
  • Yea it was pretty much a turnkey site making $20,- but I got it on the cheap which allowed me to sell at market value and still make good profit.
  • Hi Garner - How is your journey going ? Any luck yet ?

    PS I just posted a thread in the Websites for sale forum if you are interested.