There are thousands of people who make a living from flipping websites. Although it is a tough market a good website will sell quickly for a huge profit.
Most novice website flippers fail, because they don’t know how to do it from start to finish. Some might have a good idea, others might have a large budget, but if you don’t know how to combine them, you won’t be able to make a website that sells. Today, I will enumerate couple of reasons why you should consider building and flipping websites, as well will teach you how to do it the right way.
Why to build a website and sell it?
Building websites for clients is a great way to make money. It can provide you a stable and long term income if you have enough clients. It will require however a lot of effort and time to find new clients maintain current client’s website and support them. This is a full time job.
What if you already have a full-time job, but want to make some extra cash? Well you could try building a website in your free time. Building up a website from scratch, using a software such as WordPress, will not take long. You can get online in couple of days, with only few hours of work on a minimal budget.
What is the initial investment to build a website?
Here we are talking about yearly expenses, while hosting and domain are purchased on a at least one year plan.
- Shared web hosting plan will cost about $5 / month, that is $60 per year
- Domain name fee is around $10-15 / year for a .com domain
- WordPress – it is free, open source software; use it with confidence.
- Premium wordpress theme – one-time expense of $40-60 (but you can use a free one as well)
So to summarize it, you will need a budget of $100-120 to get your website online. After this comes the part where you create and upload the content. If you are not good at writing articles, or don’t have the time to create the content, you can outsource this part, however it will cost you around $5-$10 per article.
How to build a website?
You should never start a website based on an idea that sounds good. If you have an idea, take your time, do your research, analyze the market and the competition, find out if there is any demand for such website. Ask people’s opinion on different webmaster forums, but do not tell them your entire idea, because someone might steal it.
Once your research is done, and you have chosen a profitable niche, you can now start building your website.
The first step is to get a web hosting provider. Do not go with the cheapest web hosting you find, instead choose a hosting firm that provides reliable and affordable service. There are web hosting providers that offer a free domain name as well advertising credits. You can save up some budget on choosing a hosting plan that comes with these bonuses. If you are building your site using WordPress, you should choose a hosting company that is good at WordPress hosting and offers 1-click installation tool.
You should use WordPress for building your site, for couple of reasons:
- It is free to use and easy to configure (no experience is necessary to get started)
- It is easy to customize and adapt its functionality to your needs
- It is very popular, so your potential buyers might already know how to use it
After your system is ready, install a free or premium WordPress theme, install the plugins you need. Here is a tutorial that explains how to create a website with WordPress.
Now you can start adding content. This is the most time consuming part, because you will need to write unique and high quality articles. If you want to speed things up, you can outsource a part of the content creation; however this will require an additional budget. Depending on the writer’s experience and level of writing an article can cost you between $5 and $50 per five hundred words.
What type of websites sells well?
The niche is a very important factor when building a website. Selecting a niche can be difficulty. You always have to look for a certain topic that has an average competition, but still has some money in it. Don’t have to be an expert in that particular topic, but you should have some knowledge or willing to learn more. Otherwise it will not be possible to write the necessary content.
3 types of websites that will surely sell:
- Content websites
- Product or service sales websites
- Affiliate websites
Content websites: these are the most popular websites. In this category you can include blogs, news websites, forums, image sharing sites, etc. These websites are usually monetized trough selling advertisement space or via Google Adsense.
Selling products or services: these websites are usually built with an ecommerce platform (it is possible to create an online shop with WordPress) and focuses and selling certain type of services or products. These types of websites might not sell very well, because they necessitate more effort and time to run and maintain. There are however some exceptions such as this one:
The concept of selling funny potato parcels online seems to be a good business idea as well looks very profitable.
This guy claims that the site PotatoParcel.com was launched in May, 2015 and already has generated over $40k in revenue. There are 6 days left until the sale ends, and the auction is already at $16,000. Good luck to Alex! Looking forward to see how this auction ends.
Affiliate websites: are also very popular. These types of websites are very similar to content websites, however they focuses more on creating content around certain types of products or services. Most of review websites are monetized through affiliate sales.
What is my website worth?
Probably this is the most important question that comes up, when selling a website. For how much should you sell it?
When you are selling a website, you will also sell the content, the domain, the whole business idea that is behind it. A domain can worth more, than the website itself. Usually websites will sell for 10 to 12 times more than the profit they generate in one month. So if your website makes $100 profit in one month, you could sell it for $1200. Certainly this is only an unwritten rule, but it could give you a good reference on calculating how much your website worth.
Where to sell my website?
There are many websites where you can sell your online property. The cheapest way is to post on webmaster forums and put your website on sale there. You can also send out emails to your competition, they might be interested in purchasing your website.
You can also try on auction websites such as Flippa.com or ask a broker at Latonas.com to help you sell your site. These services however will cost you money. Whatever option you choose to sell your site, make sure that the payment is done through an escrow service. This way you can be certain, that the money will arrive.
Final words and recommendation
If you are just starting out with website flipping, you should know that it will be a long journey until you sell your firs site. So be persistent and do not give up easily. I constantly repeat myself, but it is important to choose a niche that is profitable and has a good market value. To be able to build a successful website, you will need a strong base for it, so web hosting cannot be overlooked either. So make sure you choose a good hosting provider and build your website with a good tool. I recommend WordPress.
Quick Update: I was keeping one eye on Flippa, to see how the PotatoParcel‘s auction goes down. I was surprised that the auction ended at $28,500 and did not met the reserve price. Even though the website did not sell at this time, the seller knows that someone wanted to pay that amount of cash for it. This is a very good example, on how a good idea turned into a website can bring you a lot of money. So what are you waiting for? Go and start making a website!