Website flipping is the next step up in website investing. In this instance, you are moving one step forward: investing in a domain name, hosting the website and getting the website up and running.

The best way to look at website flipping is to compare it to a real estate transaction: house flipping. With a home, you purchase the property at a low price. In this case, the website is virtually nothing. You may purchase a website already in place and improve it. Or, you can select a website domain name and start building from scratch.

The cost is again very small initially. Once you have the website under your control, you add to it, increasing its value just as a home investor would invest enough money to get the house in a higher valued condition. They often modernize it, changing out any necessary appliances and often times repair damage. By investing $20,000 to $30,000 into the home (not the website!) they wind up making a substantially larger return on their investment, perhaps even doubling the value of the property.

The same is true with website flipping. You come in with a very low price, build up the website's value and then sell it to someone (or a company) that can further carry it to success. The profit potential here is unlimited, depending on the niche and the overall success of the website you design.

Additionally, website flipping is not just about turning a small profit on getting a website started. It is also the process of finding underperforming websites, purchase the website and increase the value of it. Then, you turn around and sell it for a larger profit. The fact is, many businesses online are still very new and they are often far less profitable than they could be.

In order to be successful at website flipping, you simply must know how to build a website with success. The more traffic it gets, revenue it brings in and overall high quality of the website will define if the website is worth more and therefore if anyone will invest in it.

ADVANTAGES OF BUYING AN EXISTING WEBSITE

There are definitely some advantages to purchasing a website that already has been established, improving it and then selling it off. For example, these websites already have an established audience. This means you do not have to develop an audience yourself. This could help you turn a real profit right away, simply by improving the search engine optimization of it or by installing an improved AdSense campaign, for example.

In addition to this, the website is likely already indexed in search engines. This is a fantastic tool because the website's ability to make a profit is likely to happen much faster. This can mean getting into the top search results faster. Even websites with very little attention likely have some type of back link network already developed for it.

Another benefit of purchasing a website already developed is as simply as avoiding the Google Sandbox. This is only possible if you purchase a website that has made it through the first 12 months of life.

HOW TO BUY A WEBSITE

Let's assume you will be purchasing a website that you want to develop and flip. It has already been in place for some time, and you know it is likely to be a great investment for your business. First off, you need to realize what the site can do for you and how it will fit in the strategy you are developing for your business.

You may wish to purchase a website that is already getting targeted traffic for the product or service that you are already promoting. By purchasing a website like this, you can then take all the traffic that is already going there and funnel it to your own products and sales pages. In order for this to work well for your business, do be sure that the traffic coming to the website is high enough to warrant the purchase and quality enough to actually help turn a profit. High traffic does not mean you are getting good traffic.  

On the other hand, you may just want to purchase the website and flip it. In this situation, you definitely have to look for the right website to purchase. As a house flipper knows, it is more than just knowing what the actual problems are with the house. You also need to know the market for the house, or in this case, the website.

There is risk in purchasing a website for the sole reason of flipping it. It can be very costly to make a mistake since you will likely be investing a good amount of money into the flip. In this situation, you need to ensure that you purchase websites that have the highest potential for profit. You need to see a large result from the time and money you put into the site to make it worthwhile. On top of this, you also need to be sure that there is a market for purchasing it after you have created the final, finished copy.

Some of the best websites for this are under performing e-commerce websites that are selling a product. The product they are selling should be in a well-established market. Look for a market that may be just starting to take off. In addition to this, be sure that the website itself has potential. For example, if it already has great search engine optimization, chances are good it may not get much better. Of course, the website's owners have to be willing to sell.

To make a profit from flipping websites, you have to master the following:

Ø  Choose the proper website that is able to provide you with the likely potential sale you are hoping for.

Ø  Implement changes quickly. This usually includes making a few changes to see a significant increase in the functioning and profitability of the website, in multiple areas.

Ø  Get a double digit increase in sales for the website, a sure sign the website is profitable.

Ø  Get the work done and working for you before the general marketplace gets caught up to you.

Ø  Do this and you can make a sizable profit on the website by selling it for a premium.

Ø  Don't wait so long that the Internet is saturated with those who selling the product or service you are.

It is important to remember that the Internet is one of the fastest moving marketplaces anywhere. The competitiveness of the web is also just as fast moving. In order to buy and flip websites with success, you will need to know what to do, how to do it and get it done as soon as possible. You should also be up to date on the movement in the web, including the strategies helping the web to move fast.

Take into consideration this method of website investing carefully. It takes the combination of just the right scenario to make a profit. This method of investing is best for those who have experience in website development and in profitable website design.