Australian Website Investors and Online Entrepreneurs Matt and Liz Raad continue their discussion about how you can profit from website flipping and renovation.
Website flipping, just like any other investment, can come with huge profits. But with profit always comes risk. The process at which to secure your profit is not laid in stone. However, you can always learn from the insights imparted by others. Here’s the last 3 of them.
Sure, as a buyer, you’d want to score you site at a bargain price. But you need to be ready to justify why. Determine your offer based on the monthly profit that the site is generating plus the improvements that you see are needed in order to optimise the site.
Your offer must be low enough for you but high enough for the seller to reconsider. A good bet would be to make an offer of around 70% of the asking price.
RENOVATE, RENOVATE, RENOVATE
Once you secure the website, complete the post-purchase process and get to work right away. Website renovation isn’t an easy thing to do but the more improvement you introduce to the site on a daily basis, the more chances you have at improving its profitability.
When you renovate, consider the front-end and the back-end aspects. If the site needs a facial overhaul, do it. If the site lacks automation features, set up one. A well-planned automation on your website can help significantly cut the time it takes to manage it. Remember that the more efficient a website is, the more valuable it becomes.
SELL IT AT THE RIGHT TIME
Once you’re done renovating the website, how would you know that you’re ready to sell it? Ask yourself these questions:
1. Is the website visually attractive?
2. Is the website gaining a stready stream of traffic?
3. Is the website generating a steady amount of revenue?
4. Is the front-end interface user-friendly?
5. Is the back-end interface user-friendly?
6. Does it have enough sell-able features?
7. Have you done everything you can to optimise the site?
8. Have you recovered a certain percentage of your investment?
9. Why have you decided to sell now and not simply wait later?
10. What do you plan to do with the sales proceeds?
Sure, thinking about your profit is easy. After all, that’s what made you buy this website in the first place. But how can you be sure that your next website project will be as profitable as this one? Do you think it’s worth it to let go of this site now and look for a new one?
What you need to think about is maximising your profit and not simply profiting for a few more dollars on top of your initial investment. If your profit margin from the site is higher when you hold on to it, why don’t you hold on? You might just accumulate enough to fund your next website while having this as an additional income source.