Website buy and sell: Website Flipping!

Website flipping! one of the hottest money making system in the internet. This is how the big guys play!

Ever since the start of the internet, website buy and sell has been a major money making activity already. Initially limited to a few who knows. Now a lot of people are learning that this method or system is really very easy to do. That is, if you have enough cash to purchase a site or if you have a nice dot.com site to sell.

Buying and selling websites:

There are primary activities you should do when buying websites. These includes:

1. Going to sites where websites for sale are posted.

Buy and sell web sites - http://www.sitepoint.com/ click on the marketplace link. This site lists a lot. Plus information on how much the author of the site is asking.

2. Determining the monetary value of websites.

You can visit http://www.websitevaluecalculator.com/ this site will compute values of websites you specify. All you have to do is to type in the url in their provided box and whala! you get the monetary value of the site.

Aside from this, you must do due diligence. I mean look into the dot.com financial reports. How much is it really earning! Does it have a lot of payables. Remember we want value for money, so COMPUTE!

You can then use this as basis for your offers in buying websites. Though you usually have to consider the following when buying.

Membership Sites

This sites are the best to buy. It already has a loyal traffic source and you may monetize the membership by charging a premium for added service or "Secrets" hehehe.

The usual going rate for membership site is 36 to 48 times its present monthly earning. So if the site is earning 1,000.00 USD the selling rate will usually be 36,000.00 USD to 46,000.00 USD.

Even with the high initial purchase cost, if you have the money, this is still the best choice. If you are able to improve the site and increase its membership you may be able to sell it up to 10 times your initial purchase cost.

Also, this site has a sure souce of monthly income. Specially if you charge a monthly membership fee.

Sites that sell physical products

This sites can be acquired with a purchase price equivalent to 20 to 36 times its present monthly earnings!

This site have both pros and cons. If the products are just softwares, ebooks, photos or arts. Anything that can be delivered online this can be easy.

If the sites sell jewelry, clothing or appliance you may have to take care of additional stuff like securing the product suppliers and delivery methods.

3. Negotiating payment options for buyers

Ask the seller if he can provide you with payment options. For really costly sites, ask them if they can sell it to you on an installment basis. Even if you have the money, still ask them this option. It will be wiser since you can acquire it at a minimal cost and pay the remainder based on the earning of the site. Just don't default on the payments or they might foreclose on the property :-)

If you are the seller make sure you get post dated checks or a well written contract before going on with the sale, specially if your site is already making money. Also for installment sales it is alright to charge a small interest per month on the payment.

TIP:

You must also have a fair knowledge of internet technology or have people around you who knows it. Flipping websites is a professional activity, you must have the proper knowledge or guidance in doing this. Unless of course if you have a lot of money for trial and error.

Somethings which will be important will be:

1. Domain name registration
2. ftp location for the site.
3. the description of the files on the site.
4. Used technology (PHP, MYSQL, ASP, MSSQL etc.)

After acquiring the site, you may still have to do a little improvement before you can sell it. If you are lucky and already have a buyer, sell it as soon as possible with atleast 3 times the price.
Remember we are in it for the money. The faster you get your money plus earnings back, the better.