Flipping websites has become a great business opportunity for entrepreneurs looking to get in on the burgeoning internet marketplace. Flipping virtual real estate is essentially the same as flipping physical real estate. There are criteria for the best sites to buy and basic guidelines for what to do to a site before it will sell for its highest value. All of these things can be broken down into three basic categories that every site-flipper needs to know; what, where and when.

What Sites Do I Buy?

If you’re a beginner to the site flipping business, you’ll want to start small. That means shopping for sites that are low cost and low profit. While it may seem unappealing to limit yourself to a small paycheck at first, it is important to learn the ropes before you jump into a big site. Since site flipping requires investment of money, not just your time, there is always a potential for financial loss. Low traffic blog sites or sites which already generate revenue are safe choices that will help you get your hands dirty without the chance of hurting your finances. Sites that are already established are easier to turn around quickly rather than sites which need to be overhauled or rebuilt.

For a newcomer in the business, it’s important to come up with a budget and stick with it. If you set a $200 budget for instance, you should be able to find a good website to start with. However, make sure you don’t fall into the trap of buying turnkey sites for your first flip. These sites may have the appeal of being affordable and ready for operation with just a turn of the key (hence the name), but most of them are not optimized to attract traffic.

Where Do I Buy Sites?

Once you know what to look for, you have to know where to go. Buying websites can be intimidating due to the wide range of places you can buy from. However, there are some places which are much better for purchasing than others. You should start off buying from the big, popular websites. This will give you the widest range of sites to choose from so that you can get the best one to match your needs. Flippa is one of the largest marketplaces for site flippers. Places like DigitalPoint and Warriors Forum also offer the opportunity to purchase and sell sites as well as giving you access to a member’s forum where you can learn the tricks of the trade. Not only are these sites important if you’re looking to buy and sell your sites, but they are tremendous resources that you should immerse yourself in before you ever make your first transaction.

If there are sites that you should stay away from, these would be those which don’t specialize in website flipping. Craiglist and eBay are perfect examples of such sites, where you can practically buy and sell anything and everything, but may not be your best option when you want to get the site that’s right for you and at the right price. Rather than getting a good deal, you may well end up being taken advantage of by experienced scammers who prey on newbies.

When Do I Sell My Site?

Knowing when to sell your domain is largely a matter of experience. The entire point of site flipping is to buy a site which is performing poorly or has little visibility and turn it into something that someone wants to own. Once your site is holding steady traffic or turning a decent profit, it’s time to sell. This is all relative to the amount you paid for the site to start with. A good benchmark for a site that has reached its selling point is when it will make back a buyer’s investment within 6 months. That benchmark can also help you determine the selling price, although you will also want to do plenty of research to make sure that your site’s price makes it competitive with similar sites.

You can easily spend hours, maybe days, reading up on flipping virtual real estate. However, the best way to learn is to actually get involved. With cheap, low-risk sites you can get hands-on experience in the industry without risking your money or spending too much time. The hardest part of the business is making that first purchase and getting over the nerves. Once you’ve figured out what you are doing, you’ll understand why so many people have turned to buying websites to supplement or even replace their day job.

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