Articles For Knowledge Sharing »
Jobs-and-employment » Web Site Flipping for Profits
Web Site Flipping for Profits
Like most people, you've heard of flipping houses. The idea behind it is straight-forward. You start by locating a promising fixer-upper property. Next, you purchase the property and put some work into it. Finally, after renovating, you put it up for sale, aggressively seek buyers, close the deal, and hope to make a profit.
If you've ever watched one of the TV shows on flipping, it probably seemed quite attractive. In most cases, they do the renovation in a short period of time; and then close the sale in a matter of weeks. In no time, it appears that they have turned a profit while taking on no risk whatsoever.
In reality, however, you know that flipping houses is not always a profitable business. If you aren't a skilled renovator or if you don't time the market correctly, you could easily end up selling at a loss or getting stuck with a property that won't sell. To see that this happens, you needn't look any further than the most recent recession in the U.S., where real estate speculators and flippers were left with massive amounts of debt and houses that were rapidly depreciating in value.
Now, this information alone might be enough to make you re-consider the idea of "flipping" altogether. However, there's some good news to be had: there's another type of flipping that you can do and it involves considerably less risk; and plays specifically to your set of skills--not the set of skills of a property developer or renovator.
That's right: I'm talking about website flipping. To do it successfully, all you need is an eye for a bargain, Internet marketing skills, basic site development skills, and a willingness to learn.
If you do it right, site flipping offers the possibility for you to make a large sum of moneyand#8212;and without risking much in the process. Instead of taking out a several hundred thousand dollar mortgage, you can put down $1,000 or less of your own money on a site. And instead of spending months to find a buyer for your site, you can do it in a matter of days.
When it comes to flipping sites, there are many different ways in which you can make money. However, one of the most profitable approaches to flipping involves taking an otherwise successful site that is under-monetized; and then improving its monetization.
This approach works well for the following three reasons:
Reason #1: Sites Are Usually Sold for 8-11 Times the Monthly Profit
Consider two sites that are identical in terms of the profits that they generate and the products they sell, but one receives three times as many unique monthly visitors. Surprisingly, in many marketplaces, these two sites will sell for the same price, since they both generate the same amount of monthly profits.
This creates an excellent opportunity for bargain hunters like you: recognizing that one site receives three times as much traffic as the other, you know that if that site had a higher conversion rate, then it could generate more in profits than the other. From there, it's simply a matter of determining whether or not there is room to improve the site's monetization.
Reason #2: Monetization Can Be Improved Quickly
The most difficult and time-consuming parts of building a successful website involve generating traffic and creating content that retains consumers and promotes their return. One you begin generating traffic and solidify your brand with outstanding content, everything else you do can be summarized as a form of monetization.
Monetization is generally fast. It involves putting up AdSense ads, or hiring a freelance writer or programmer to create a product. It might also involve creating a newsletter to retain and convert readers.
In brief, getting more traffic and better content is difficult and time-consuming, but monetization is not. This means that if you find a poorly monetized site, you will be able to make all of the necessary changes in a short period of time; and then flip it in a matter of days or weeks.
To the contrary, if a site is well-monetized, but gets no traffic or has no content, it could take months or years to turn it into something that you can sell for a sizable profit.
Reason #3: Monetization Can be Improved Inexpensively
Another benefit of finding sites that are poorly monetized and flipping them is that this tends to be less expensive than other methods. As an example, consider purchasing a well-monetized, low-traffic site.
In order to boost the amount of traffic it receives, you would have to pay to list it in directories, purchase articles for an article marketing campaign, and spend hundreds on various traffic-generation campaigns.
To the contrary, monetization can often be improved through very inexpensive (and sometimes even costless) means. For instance, improving monetization may be as simple as adding AdSense adsand#8212;or placing existing ads in places that are likely to convert better.
In short, purchasing poorly-monetized sites and improving monetization is the cheapest, fastest way to flip sites; and consequently, it is almost always the most profitable way.
For these reasons, it is vital that you learn how to spot a poorly-monetized site; and how to correct errors that you spot.
Article Source:
Articles For Knowledge Sharing
About the Author
Learn how to land a new career as a blogger or social media expert! Visit Brian's free website,
http://www.FastJobResume.com and learn
how to write a resume and find employment.
by: Brian SD Scott
Html View | Print View
Total views: 113
Word Count: 867
Date: Thu, 4 Nov 2010 -
0 comments
Publish/Share this article
To use this article on your site
click here to get the HTML code |
Remember: The article body, title, author bio and links may not be changed or removed. By publishing this article, you agree to all the terms in our
Terms of Service.
Rating:
Not yet rated
Comments 
No comments posted.
Add Comment
You do not have permission to comment. If you
log in, you may be able to comment.
More articles in this Category
1:
Ways To Become An Electrician Without Losing Inspiration
2:
Mortgage Careers
3:
Sales Recruitment
4:
RSA Course In Different Australian States
5:
Basic Employee Benefits - What You must know
6:
More about IT Jobs
7:
The Funds A Radiologist's Job May Pull Down
8:
What the HR Manager Wont Let you know.
9:
Online Instructing Careers Data Everyone Should Realize
10:
Weird issue in a job interview
11:
Your optimum tips on how to make some sort of cv intended for a job interview
12:
Nursing Employment Sport Strategy, How you can Discover the best Tebow Jets Jersey Occupation and Income within your New Career
13:
Precisely what to bring to employment interview?
14:
Job interview questions for managers discovered
15:
Motel Management Jobs - Is It for You?
16:
Profession Adjust Over 40 - Settling everything Together
17:
Hottest Careers in the Philippines
18:
Expand Your Horizons With Telesales Jobs Abroad
19:
Finding Jobs In The USA
20:
Finding A Part Time Job For A Teenager
