How BIG is the Website Flipping Industry?

Here is few numbers just from flippa.com

852 Listings Open Now
1,422 Bids Last 7 Days
$289,030 Sales Last 7 Days
40% Listings Sold Last 3 Months
$29,520,435 Sales Overall

To expand on that a little bit, Flippa is about six years old, so they've averaged about $5 Million per year.

Of course, this says nothing about how the industry is trending.

More numbers on Flippa:
1308 sites sold since September 4th, which makes almost 12 sites sold per day. That makes it about 30 sites listed per day, if I'm not mistaken.

This would make the average price per site around $450, although this average is meaningless here, because there is a huge variance in the potential sales prices (rangeing from $0 to practically open-ended).

I make a great living flipping websites. Selling my own ebook(s) comes in second. Flippa appears a bit saturated with people throwing quick sites up with little value and that is the reason that only 40% are sold. If more effort were put into the sites, my guess is that percentage would be higher.

I don't know how successful other sites are. Looks like those in the WF complete websites for sale section do pretty well. I stay away from DigitalPoint, so no info there and I also don't use Ebay, so don't know how they do.

As for being easy, I think that's a misperception or perhaps too many people have been told that. It is work. You build sites that look great, get or write great content, do some backlinking, get traffic, hopefully make some sales ... develop the site. Those sites are probably the majority of that 40% that do sell ... the ones that the owners have put some time and effort into.

I've always considered this type of business as a good type of income, if it's done right.

One thing I thought of would be to do it locally. I've already built a simple website for a local building contractor and got paid $300. It took me about 20 hours total time.

Now I'm interested in taking existing websites that are poor in design and navigation tools, then re-do it in a very simple manner. I think the opportunity is wide open since there are so many professionals (lawyers, doctors, engineers, etc.) that have crappy websites and would be willing to pay good money for something decent to show their clients.

As you can see from the numbers above, website "flipping" is HUGE.

But, like sbucciarel said, it is a lot of work. It's also not really a "passive income" generator like most people who come online to make money want.

That being said, I make a decent living at it, but I work my a$$ off - I don't sit on the beach drinking fancy drinks with umbrellas in them while my paypal account fills up with money. On the other hand, it sure beats working in a cube!

To me, even more important than the websites themselves is the support you give the customer afterwards. Over half of my income is from repeat customers that hire me to build sites or just keep buying the ones I make because they know I will treat them right.

Judging by the stories I hear from them, it would seem most people getting into the site flipping business don't really want to provide any customer service or support. You wouldn't believe the stories I have heard from my current customers about previous experiences buying sites which is probably why you often hear of "site flippers" in a negative light.

I think if you want to make decent money at it, you have to look at it as a long term business. If you take the time to build traffic and get earnings then you can really get some good money for site, but you have to hold on to them for a while.

For selling new ones, you need to add value because the competition is too heavy right now.

Lee

Well, these guys have provided some great answers for your questions already.

The overall average price and # of sites sold doesn't mean a lot because there are too many variables to consider. It would mean more if you were taking an average of the type of sites you plan to flip (with similar features, traffic, revenue, etc.). Averages on a whole in one marketplace does give you an idea of how active that particular marketplace is though.

Personally, I don't research keywords and try and get organic traffic for website sales. Flippa and other marketplaces have so many buyers already, so for me it makes sense to just list it where the buyers hang out.

Plus, if I was to sell privately without the help of a marketplace, I'd sell to my list of previous buyers...

So that being said, here's a few tips

1. Sell what people want (not what you think they want). What you think is hot may actually be cold, so research the marketplace. Find out what has been selling the past 30-60 days and give them something as good or (hopefully) better.

2. Don't overprice. Again, you need to research. Look at the recent successful sales. Many times, a site flipping "expert" will promote a website flipping book that was written in 2008 and tell you that your site will sell for $1,000. That site may no longer sell for any more than $200 in 2010. Find out yourself and don't overprice your sale. You'll just be wasting your listing fees.

3. Don't over hype. Many people get "sales copy tips" from IM and bring it into the site sale marketplace. While killer headlines and personal style are good to have, too much hype is bad for your listing. If the site has made $5 in the past 30 days, don't ramble on about the HUGE potential it has to make millions of dollars on autopilot without lifting a finger. You're just wasting your time. Site buyers want the facts (the real ones). You'll gain repeat buyers a lot easier by not bull****ting them.

4. Treat it like a business. If you want to make a few bucks to buy a Kindle or cover this month's beer money, then it's pretty easy to find a flipping model that can make you happy. However, if you want to make serious money that can replace a job, then like CashCow and SBucciarel said, you will have to work at it and treat it like a business.

Nurture it like a business and don't sell crap. If you started a coffee shop that was 3 blocks from Starbucks, would you sell disgusting brew and dry muffins because it was cheaper/easier? No, you wouldn't make any money. Sure, you'd get a few customers drop in cause you were new in the area, but they wouldn't return.

There are lots of ways to build a customer base just like any other business (customer support, reputation, etc.) and make a living instead of occasionally throwing together something and hoping for the best like scratching a lottery ticket. Yes, you'll get lucky here and there for a few bucks, but it won't work long term.

5. Build a list. If Flippa (and all other marketplaces) closed down today, I could still sell sites tomorrow because I have built a list of buyers and other interested parties who like what I sell. In fact, I already sell more often privately than I do on Flippa (or other marketplaces). But, that transition took some time. Website flipping can be a real business, whether you're selling brand new sites or established ones, if you simply deliver what buyers want and sell quality for more than what it cost you.

Also, once you have gained the trust of a list of repeat buyers, they might be willing to use your affiliate links to services/products you recommend. Or maybe you have your own service/product to upsell.

On a side note: I know you might have heard me say this before but...if you're looking to learn website flipping from someone, choose someone who actively flips websites successfully in the "now". The marketplace changes so often that you have to adapt regularly in order to stay successful. That "flipping guru" who sold 6 sites in 2008 is not going to be able to teach you as much as CashCow or SBucciarel who make a living flipping sites in 2010.

Hope that helps a bit
Cheers
Jay

I've been flipping websites for over 10 years. Started out on Ebay and then forums and direct. It can be very profitable if you have a good sales pitch and of course, a good website that people want. I've sold quite a few here on WF. The extra $$$ comes in very handy.

Unfortunately, I have really bad luck with Flippa. I had listed 10 sites for sell but no body bid on it at certain price and my listing went down without any sell. But, i learn more about the Flipping Industry. You must have good reputation before selling a big site. I have seen many gurus selling their profitable website there.