Living in a digital world, there are digital assets. Which means all your digital assets have a value ergo, domains, websites, everything has an intrinsic value.
Flipping of websites is like the flipping of houses. You can build a house, flip it. Buy a new household for a while and flip it or buy a household it and flip it. Unlike buying of houses and flipping, there is risk involved and so are the rewards.
Digital Assets today are one of the most undervalued assets. There are entrepreneurs who are constantly buying undervalued websites and with minimum time and effort, they are able to sell it for a much larger profit.
Types of websites
These are broadly divided into two parts. First are brand new or turnkey websites. They are ready to use website (not templates) where you can start doing your business from day 1. The others are already monetized websites, with revenues.
A typically monetized website is valued by taking the average of the last 6 to 12 months’ of net profit and then multiplying that figure by a multiple ranging from 20X to 60X+, depending on a number of factors.
This means that the highest premiums and money is made when one takes are turnkey or brand new websites and add will monetize the same. This is where most of the money is being made.
Are there buyers for websites?
First of all, you need to think about websites as a business. Like all business that has value websites also have a value. So, yes there are buyers for the website that have a viable business and a clear way to monetize them.
There are different entrepreneurs who have a focus on different aspects of a business. Some of them want to build something, some want to grow and some want to expand their business portfolio. Depending on the requirement of entrepreneur they are willing to pay a premium for getting a business on a platter.
Steps to make money with Flipping
1. Choose your niche
Try to find a niche that you are well versed with. For instance, if you are in education you can look into setting up online courses website to flip or if you are a WordPress expert, online guides can be set up and it can be flipped or even in eCommerce there are turnkey websites with actual products and vendors.
This includes niches within the following spaces:
- Health and wellness
- Money and finances
- Sports and hobbies
- Relationships and personal growth
The above niches can expand out into multiple sub-niches as well. Your website can have content, digital products/services, physical products, etc.
2. Choose a domain name
Once you have a niche, you can choose a domain name for your website. So, if you are from the fashion industry – having a website representing your niche will be beneficial.
3. Web Hosting
Once you have bought a domain you will need a platform to host your website. Having a premium hosting provider is extremely important. Always avoid third-rate Hosting providers. There is not a bigger mistake that a startup can commit trying to get into a hosting provider who has massive downtime or website is too slow.
This will bring doubts to your potential buyers and they will not buy your website. Our rule of thumb that a good hosting provider is:
- 100% Uptime
- 100% SSD Drives
- 1 GBPS port speed
- Latest PHP with FPM
- Great serer level security
4. Your Website
Once you have got your domain name and hosting done. It’s time for you to get started with building a website. One of the easiest ways to build a website is using WordPress. There are a lot of advantages of using WordPress as a CMS, which is why over 30% of the websites today are powered by WordPress.
Tip: Build a website with multiple sources of income, this way you can demand a lot more premium too.
5. Rich Content
Business buyers will evaluate the content on your site. For them, there needs to be a cost-benefit to buy a ready turnkey website vs building it on their own. When a website is built with rich content, buyers will be willing to pay a premium to get ownership of that content.
Is it applicable if I am building an eCommerce site? Absolutely yes. There are aspects like categories of products, product sales pages, blogs, etc. all these components of your eCommerce site are content-based. Just having to import a product will not help. Frankly, anyone can do it. Get in rich content to drive up your prices.
Google has a clear bias towards higher domain authority. By doing the right kind of SEO and getting your website ranked faster will help you with sales (of your products) and will also help you to charge a massive premium.
Most of the buyers will be looking for the organic traffic your website has and that will translate to the premium they are willing to pay. In traditional business, it is the goodwill value. So the goodwill of the website depends on how Google sees your website and how it is ranked. Some of the basic SEO pointers to keep in mind:
- Number of referring domains
- The quality of the linking domains and pages
- he anchors text profile should mainly consist of naked URL (geekcrunchhosting.com), generic anchor text (view the article here), keywords anchor text (Hig- Performance Business Hosting) and branded anchor text (GCH Business Hosting).
- Add your site to Google Search Console. A lot of buyers will want to check Google Search Console for links coming from PBN’s etc.
Always make sure that your SEO doesn’t attract Google penalties. This will completely erode the value of your website.
When we look at any business that you start. It will take a couple of months for the site to take off. The focus any of such website will be to generate more traffic. More traffic means more revenues and higher premiums when you sell.
Most of the entrepreneur feels that once the website is launched the traffic will come in. Traffic won’t take off instantly. Buyers won’t be interested in a site until it’s shown a good performance record for months. The advantage of having a digital asset is that revenue will grow exponentially – after achieving certain traction, the higher revenue will translate into a better sale price. We always advise our clients to hold on to the business until the revenues flatten, this is the peak of your business – this is the time when you will get a great premium.
Rich content + high Google ranking + automated income = Big Premium!!
Whether you launch a new site or flip an existing one, whether you plan to sell it or keep it for income, you need to cultivate it carefully and allow time for growth. There are many approaches to success, and you should study them all to decide which suits you best.
If you have reasonable site management abilities, patience, a good strategy, and a certain amount of luck, and if you can live with the risks, you can make money at it.
How can Geek Crunch Hosting Help you?
Transfer Process: If your domain and hosting is with us, using our control panel the transfer process & ownership transfer is extremely easy. Just by letting us know, we can move the ownership of your hosting and domain to your buyer. There is no hassle of migration of any other overheads.
Business Consultations: Apart from the transfer process, our relationship managers can help you with ideas – give you advice as to how to improve your traffic, ranking, etc. Giving you a better understanding as to how you can add value to your business before you can sell it.
Access to our network: We have got multiple members within our network. From drop shipping products providers to digital marketing companies, etc. We can help you to leverage your website & ensure you get the service that is required.