What You Must Consider Before Flipping A Website

Posted by KC

November 17, 2007

As more and more Internet Entrepreneurs are focusing on website flipping, you would need to gain a proper understanding in this industry before you made any investment. I will briefly talk about the key areas that you must take note when you flip a website.

In case you need further clarifications, flipping of website means buying a potential website and sell it off for a profit. The most effective channel for me to flip a site is through forums and direct contact. If you take a look at the website marketplace in DigitalPoint, you will be overwhelmed by the sheer number of websites that are there for you to bid or buy immediately. However, not all the websites are profitable, you need to consider the following key points before you buy a site:

Sources of income

How many sources of income is the site currently receiving? It is always better for a site to have multiple source of passive income instead of one. You will not want to put all your effort concentrating on PPC programs such as Google Adsense because a single tweak they do will affect your search engine rankings if you have done the optimization wrongly. The site should have at least two channels of income - Pay Per Click and Pay Per Action / Lead or Pay Per Click and selling of products. You can still capture a potential site if it only has one single source of income. Look out for its traffic.

Where are the traffic coming from?

Ask the owner where are the majority of the traffic coming from? Is it from the search engines, bookmarking sites or regular visitors? Different type of traffic will perform differently for a website. For example, regular visitors will not click on Google Adsense advertisement as frequently as the visitors referred from the search engines. If you are looking for a site with less maintenance effort, stay away from sites that have a high proportion of regular visitors.

There are still a lot of other factors to consider. We will go into some of the live examples / auctions in my next posts

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About Author: KC is an Internet Entrepreneur with several years of forum marketing experiences and frequently shares how to generate income online from various channels. Find out more about KC.

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