The Nuts and Bolts of Website Flipping
August 19th, 2010 | 
Author: The Nuts and Bolts of Website Flipping
In a site flipping business your properties are websites—virtual properties that are, in the business world, exceedingly real even though you can’t walk into them or drive by them! These online properties are built, bought, owned, managed, maintained, improved and sold. Most property concepts that you can apply to the ownership and development of actual real estate for profit can apply to the development and ownership of online real estate for profit. For example, virtual property ownership transfers during a sell. Each virtual property has a distinct value. Virtual properties can be improved. Virtual properties can be high-end or bare bones. Even the notion of ‘location, location, location’ applies to your online real estate.
In site flipping, the proverbial real estate adage that location, location, location determines a property’s value very much holds true for online properties, too. However, the location of virtual real estate may be more realistically viewed as its online connections. A gentle reminder of how the Internet works helps illustrate how simple site flipping is in concept and how you, if you are a site flipper novice, can get a good fundamental understanding of why this works as a profit-making venture.
And, now for that gentle reminder and a few more basics to help lay a simple, but solid foundation of the site flipping concept.
The Internet is a web—a connection between countless and specific sites, sites that are growing and multiplying exponentially even in the time you took to read this sentence.
In such a world, the world of the World Wide Web, a well-connected site is a desirable and profitable site. A well-connected site online is one that is settled into a nice intersection of the web and communicates through its connections with other points in the web. A well-connected site has a higher market value than a less connected site. That’s what I mean when I say that its location determines its value. In site flipping, even a potential connection can be valuable if your buyer understands that potential. Potential in virtual property is similar to developing a physical piece of real estate in a particular neighborhood because you know that some nice things are going to happen here one day and your property values are going to rise. In this ‘real’ real estate venture, you see the future gain. Virtual real estate properties, your websites, have speculation value as well–which leads us to another simple, but key concept to remember in the site flipping business.
Any site that is currently making money is worth money. A site that has the potential to make money is also worth money.
Developing a site to earn money is the online landlord’s equivalent of tending to curb appeal, remodeling, building from the ground up or whatever other actual real estate scenario you can think of. Each similar maneuver in cyberspace has its own profit margin, risk potential and investment requirements. Do a little and you’ll usually turn a profit. Do more and earn more.
Yes, sometimes you are lucky and you strike virtual real estate gold, but typically, it’s steady as you go with very little risk if you go wisely. As we look at some basics of the trade more specifically, you’ll begin to think in terms of current worth and potential worth as you evaluate your deals and plan how much of your time, money and effort you will invest in your virtual properties before you sell them.
Because buyers (and this includes you before you flip a site by selling it) will want to know how much money a site is worth and how much money it could be worth, you’ll have to learn how to estimate these figures. Learning this also helps you decide where you can reasonably take a site before you sell.
Like I said before, site flipping is a niche of Internet marketing that has become a full-time business for many. That tells us that there are some definite ways to figure these types of things out and to make that knowledge work to our advantage. Site flipping is catching on fast and there is unlimited room for more development. Getting in on the ground floor may not really apply this business except personally. Your site flipping business can prosper relatively untouched by the competition factor at start-up and your ground floor may simply be the day you decide to start. Territory is not limited online as it is in the physical world. So, let’s forget all those notions about how the value of a product in the ‘real’ world depends on providing something no one else does. Since your ‘product’ will be your online properties, let’s talk about the bottom line with our next key concept.
Site flipping, if done correctly, will develop a website with as little investment as possible and sell it as rapidly as possible while turning a profit.
There are guaranteed and distinct ways to minimize overhead, minimize labor intensity and speed up the process of website development—all of which make a site flipping venture a successful one.
Article written by Bert Seither
To learn more visit: http://websiteflipcoach.com
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