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Websites are the virtual world’s real estate. Others see buying and selling websites as a business venture in the same way that some individuals choose to invest in residences.
Create a Buy & Sell Website is a viable option if you’re seeking for a new career or side hobby that you can accomplish fully from home.
However, you should be aware that it is not easy money. As with real estate investment, there is an inherent risk, and doing it well takes time and effort.
A good website flipper must be able to detect undervalued websites that can be enhanced with minimal time and money input before being sold for a higher price.
You’ll learn the ins and outs of buying and selling websites in the sections below, so you can start a new side business or boost your online revenue.
1. Be aware of your time and financial constraints.
Take stock of how much time and money you can afford to commit before considering purchasing a website. Purchasing a website comes with risks, so only pay what you can afford to lose. Regardless of how appealing the website appears, there are no assured investments.
Consider how much time you have to work on your new site once you’ve established a budget. You may not need to make any modifications if you find a website that is already producing money passively. However, in order to maximize the return on investment from a sale, you’ll need to identify areas for improvement and make the necessary modifications.
2. Look for Opportunities in the Right Niche
When it comes to buying websites, the niche you choose is crucial. Choose a site that isn’t built on a fading fad. Look for websites with evergreen content. If you’re unfamiliar with the word, it refers to information that will continue to be valuable and popular over time.
Evergreen niches include the following:
- Well-being and health
- Finances and money
- Hobbies and sports
- Personal development and relationships
- Recipes and food
- a small company
- eCommerce
- Education
- Political comments and current events
- Coverage and analysis of the entertainment industry
The niches listed above can also be divided into sub-niches. Don’t simply consider the big picture issues like health. Consider sub-topics such as fitness for over-40s. Specialized niches are more valuable and relevant to a certain group of customers, and they have less competition than websites that cover a broad range of topics, which can lead to a more loyal following.
3. Locate Purchase-Making Websites
Consider a few critical performance factors when determining which sites are worth purchasing.
- How much money does the website make?
- What is the consistency of the earnings (e.g., are they seasonal?). Are there any peaks and troughs?)
- Whether or not the income is primarily passive (i.e., not wholly based on advertising)
Is there any room for growth? Consider whether you can find strategies to increase traffic, diversify your money streams, and improve the quality of your current content and design.
Expect to pay a multiple of the site’s current monthly (or yearly) revenue. Because the current owner is foregoing future earnings, the price must be reasonable. You should anticipate to pay a 12-18x multiple of your monthly income on average, though this varies.
There are, however, sites that will not charge as much if you are prepared to take on more risk and do more effort. You can probably spend less if a website is newer and hence doesn’t have the demonstrated staying power of a site that has been a long-term steady earner.
Here are a few of the most popular places to look for websites to buy:
- FE International is a non-profit organization that promotes
- We can help you sell your website.
- Flippa
- BizBuySell
- Brokering Websites
- Empire Flippers is a company that specializes in flipping
4. Make sure you’ve done your homework.
It’s time to complete your homework once you’ve selected a website you like. This contains items such as:
Trying to figure out why they’re selling the property. Has Google alerted you to it? Has there been a gradual decline in interest in the niche? Or are they simply bored with the site and want to try something different?
Look for revenue and traffic proof. Google Analytics and other technologies can usually be used to check traffic numbers.
Do you have faith in the vendor? User profiles containing reviews, ratings, and other information are available on several websites.
Take a look at their link profile. Are the links bought or do they belong to a white-hat network? Can you keep the link number and quality up if the site relies on SEO?
Speak with the vendor and ask these questions, as well as assessing traffic and income records. Many of the platforms mentioned above provide broker services to assist you in evaluating the site. Some additionally thoroughly vet each site before listing it, ensuring that it is of good quality.
5. Make a proposal
It’s time to make an offer if you’ve located a site you like and have done your due diligence.
A price will be provided on some website listing sites. If this is the case, you should begin with a lower offer, but don’t go too low. Starting at 70% of the asking price provides you some leeway, especially if there are some negative aspects of the site that you discovered.
If there isn’t a price listed, utilize what you learned in the previous stage to figure out how much to offer.
6. Make improvements to the website
- It’s time to get to work making the site more valuable after you’ve purchased it and had it transferred to your name.
- You want your monthly profit to increase as much as feasible. This may entail actions such as:
- Improving content strategy and SEO so that you can rank for more keywords and get more traffic.
- Investigating affiliate prospects or haggling for better terms
- To increase revenue, increase your investment in areas like social media and paid advertising.
- Creating and maintaining a healthy email list
Overall, you should strive to maximize traffic and profits while eliminating yourself from the situation as much as feasible. A site that requires less time to run and maintain will command a higher price than one that requires a lot of effort to keep profitable.
7. Determine the value of your website
After you’ve spent some time increasing the value of your website, perform the math to determine how much it’s currently worth. This step will be similar to the one you took when selecting how much to pay for it; the only difference is that you’ll be on the other side of it now.
Consider the following:
- Your current traffic, as well as any increases since you took over
- What is the current revenue of the site, and how steady is it?
- What are the number of revenue streams and how likely are they to continue?
- What is the size of your email list and social media following?
- One-time visits are less valued than loyal followers.
- How much work will the website require to maintain its current profitability?
- The domain name’s worth—if it includes a popular term, it’ll be more valuable to related buyers.
- You’re ready to sell if you’re satisfied with the figure you’ve come up with and are confident in your ability to persuade a buyer.
8. Locate a Buyer
These last few steps can be completed in one of two ways:
- Make use of a marketplace website.
- Make use of a broker.
All of the website marketplaces described in step 3 are choices for listing your website. This strategy has the advantage of allowing prospective vendors to come to you rather than having to perform the legwork of finding them. You’ll also save money by using an internet marketplace rather than a broker.
However, hiring a broker provides advantages for anyone who is new to selling websites or owns a website that they believe could be worth a lot of money. A broker has a large network of connections. They can identify the types of buyers who are most likely to want and be able to afford your website and locate them for you.
If you enjoy the notion of hiring a broker, certain online marketplaces, such as Flippa and FE International, provide website brokering as a service. Website brokerage services are also provided by the following companies:
- Exits from the Digital World
- Advisors to the Founders
- Light that is quiet
- Properties of a Website
9. Complete the Sale Negotiation
It’s time to get down to business once you’ve located someone who wants the site (or they find you). Decide on a price that you both agree on, and then hash out the details of the transaction. If you engage a broker, they will assist you with the negotiations as well as all of the necessary documentation. If not, you might want to hire a lawyer to make sure you’re doing everything correctly at this point.
Use an escrow provider while accepting payments. This is a clever strategy to avoid scammers while also reassuring the seller that you aren’t a con artist. Although most markets have built-in escrow facilities, using a third-party service if you’re selling the site on your own can be beneficial.
10. Make The Switch
Another aspect of the procedure that a broker can assist with is this. If you’re doing it yourself, talk to your web hosting provider to make sure you’re taking all the necessary technical procedures to transfer your website to the new owner.
They’ll need access to your web hosting account, domain name, and any content management system or website builder you’re using. And all of the website’s assets will have to be transferred to their name.
Is it Possible to Make Money Buying and Selling Websites?
If you’re thinking about starting an internet business, you have a lot of possibilities. It isn’t for everyone to make money by buying and selling websites. Identifying the correct websites and increasing their value takes a lot of effort and talent.
Buying and selling websites, on the other hand, can be a lucrative business model provided you know how to detect a good opportunity and have experience raising website traffic and revenue.
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