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The Site Flippers MUST know strategy...

by LMC
15 replies
Hey Warriors,

I see a lot of people interested in site flipping these days, I got into site flipping just purely by trying to get rid of sites when I was 19, then loved doing it.

One of the key MUST know strategies is to plan efficiently.

Ask yourself:
  • How much do I want to make on this Flip?
This question will help you alot, let's say you want to make $500 on the flip. Well then, based on the statistics of site buyers, most are looking to sepdn between 3-5 times the monthly income on starter sites, once you have a year etablishment and a years worth of statistics you can reach that 7-9 monthly point.

That means, really we need to create a site that is making around $100-$150 per month.

Is this doable?
  • It's only 10 advertisers for $15 per month each on your information portal?
  • It's only 10 membership signups at $14.97 per month.
  • It's only 4-8 sales per month on affiliate products
  • It's only 5 or so Paid Reviews.
There are so many ways to produce that small monthly income, but then you bank hard on the flip.

That is what flipping is about. Banking hard. Producing hard capital. Earning bigger dollars.

You should also have a Post-Flip strategy.

My post flip strategy is selling at a mid price and excepting equity on the revenue for 6 months to a year. I'm not going to get into this in detail, but what happens is, after you flip 20 websites, over the next year, you have a percent of income coming to you every month from those flips...

Just some thoughts,

LMC
#flippers #site #strategy
  • Profile picture of the author yesacpow
    I will give your tips some thoughts.

    I am not into site flipping at the moment but may get into it soon to get rid of some non performing websites I have.
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    • Profile picture of the author payment proof
      I think it's funny. House flipping used to be the in thing. Now it's site flipping, lol. If you have a strong knowledge of SEO and the time and desire to do it, I imagine it could be profitable.
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  • Profile picture of the author Sheryl Polomka
    LMC

    Just curious as to what promotion methods you use on sites to gain traffic and make income before flipping them. Then of course you want to take into account the amount of time you spend on driving traffic when you sell the site - you're selling price needs to give you a good income for the number of hours you have spent on the site.
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  • Profile picture of the author LMC
    Sheryl,

    A strong understanding of PPC and using banner advertisments within PPC can get you a great click ratio and won't cost a lot. I use PPC to drive sales.

    Let's say it takes 100 visitors to produce a $27 sale. It would cost me around $30 to produce those clicks, yea no profit, but when I sell the site that one sale is worth $108, so yes, I do profit $78 for those efforts.

    With PPC there really is no time invovled.

    I do some article marketing, a press release, and then try to get a JV or two. That is about it.
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  • Profile picture of the author Sheryl Polomka
    Ok, I hadn't thought about PPC just to make some sales before flipping, but do you get many buyers asking about where your traffic is coming from? Don't they prefer to see income coming from organic traffic?
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  • Profile picture of the author LMC
    Sheryl,

    Of course... this is why I set up the articles and your normal SEO strategies like backlinks, press releases, JVs, etc...

    However, I sell my sites based on income + small traffic + huge potential.
    Then I pitch them a decent selling price, but a nice equity for myself.

    Once you start flipping regularly a site's startup becomes routine.
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  • Profile picture of the author Sheryl Polomka
    Thanks LMC

    I do flip regularly but I create and sell I don't make the income and sell as existing. I know that it is much more profitable to sell a website making an income I just didn't know if it was worth the time and effort to gain traffic compared to the price you sell for. I like your strategies though, thanks for sharing.

    Sheryl
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  • Profile picture of the author LMC
    Sheryl,

    Maybe we can work together in the future... when you have your created websites, let me take a look at them, maybe putting two and two together could result in a larger flip for both of us.
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  • Profile picture of the author Sheryl Polomka
    What type of sites do you generally create? Ebook sites, blogs, affiliate sites? What is your main type of site?
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  • Profile picture of the author LMC
    Sheryl,

    I like building business to business sites that usually have an ebook as the intial part of the marketing funnel followed by some application based membership. These are my big ones that I work on for three months and sell for the five figure mark or more. I've sold three of these and I'm negotiating on the fourth.

    I like selling online memberships that are produced in a geographical location, like a Home Owners Association or Business Registery, these flip nicely.

    I like utilizing online and offline tactics for fast results, the above is what I mainly concentrate on, however, there is always down time.

    On the side, information portals that have independent advertisers from local areas, these usually are between $500-$997 as a flip.

    Wordpress Blogs that I setup on a premium theme with quality content written by outsourcers, these usually sell for $250-$500 range.

    Then on the other side, applications for Twitter, Facebook, Iphone, etc... these vary in price, and I'm really just getting into this.
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  • Profile picture of the author Sheryl Polomka
    Wow, you sure do sound busy!

    All sounds very interesting, thanks you have given me a lot to think about.

    Sheryl
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  • Profile picture of the author InternetM39482
    Great thread, Having your goals with Site flipping would really help.

    I do ask myself whenever I'm preparing any flip -- What is the time frame and What costs?

    Let's say $500 flip on a 30 day time frame.

    What are my revenue streams? Say it's a blog.

    -- Affiliate offers
    -- CPA offers
    -- Direct ad sales
    -- Paid reviews

    So basically I can drive 20 leads @ $10 a lead (in a month's period, that's a low amount) to some CPA offer, promote a few affiliate offers, make some sales and with traffic trickling in, I'll usually get a couple ad spots booked and a few paid reviews. That's around $300 in revenue. Let's say my costs were $100, easy flip of $500 is on the table.

    According to my revenue streams, I set up my traffic plans and promote the site.

    I was a lil' curious on this.

    Let's say it takes 100 visitors to produce a $27 sale. It would cost me around $30 to produce those clicks, yea no profit, but when I sell the site that one sale is worth $108, so yes, I do profit $78 for those efforts.

    With PPC there really is no time invovled.
    You say 100 people cost you $30, and you make a $27 sale.

    Why would someone buy a site with a loss of $3 (or w/e amount) for $100 or so. Its only once you're in profit that you can sell the site for w/e price it justifies.

    My opinion.
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  • Profile picture of the author LMC
    Swastik,

    The $27 payment usually is a push into a long marketing funnel of upsells, memberships, or other products.

    In the above example I tried to keep things simple, but usually, I'm trying to break even on my PPC, bring forth upsells to produce more profit..

    Also, my selling stratgies don't usually have people thinking loss...

    For example, if I have a website that I produce $250 in sales with, all from PPC, but in actuality it was a loss, I would sell the site based on the backend offer that is available for your signups, I would push some sales into the backend to show that it works.

    From just the revenue, you think the site should sell around $850-$1,000.

    I probably sell the site around $500 for a quick sale and ask for 15%-25% equity for the next 6 months.

    Sometimes I get lucky, someone buys my site with a huge list, and the next month they generate $1,000's and I get the 15%-25% share on that for the next 6 months.

    Sometimes I get someone that knows nothing...

    It's all about trial and error. There is no shut case way of doing things.
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  • Profile picture of the author vishyboy
    Any one flipping iPhone Apps yet?
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  • Profile picture of the author kjfuller1
    Thanks for the tips
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