We all know that money doesn’t buy happiness but it certainly helps. Being comfortable financially can help free you up to pursue what you really love to do. It can also help to remove some of the stressors in your life that are holding you back.
However, killing yourself by working 80 hours a week so that you can have a big number in your bank account isn’t going to help you much either.
You need to find ways of making money that enable everything that goes into having a higher-quality lifestyle, which includes time for yourself and flexibility.
One of the first things you can do to help get you on more solid ground financially is to introduce some new habits into your lifestyle.
You can be doing lots more. There are ways for you to generate additional income, or a primary one, without destroying your life. Buying and selling websites is one of them.
Now, this is not a get-rich-quick pitch. While you can definitely earn some serious money “flipping” websites, it takes patience, knowledge of the field and a decent amount of work.
But if you do it right, you can start earning some real money so that you can live the life you’ve always wanted.
Here’s how to buy and sell websites to earn serious money:
The first thing you need to understand when trying to make money buying and selling websites is that not all are created the same. A website can sometimes be expensive (giving the illusion of value) simply because it has an in-demand domain name.
This is not value. Value comes from the way the website generates profit, how well it is run, how well records have been kept, as well as many other factors.
Generally speaking, a business is worth 2.5 times its yearly revenue.
This is important for you to understand for two reasons. One, it gives you an idea as to how much you should spend when buying a business and it also gives you an idea as to what you might be able to sell it for in the future.
Basically, you need to ask yourself how you are going to make its revenue grow so that it will be worth more than what you paid for it.
Perhaps it is already growing, and you expect it to continue. Or perhaps you have some ideas of how to get it to make more money.
The best websites are those that are underperforming in a non-competitive niche. These will often be easy to acquire, and you should be able to turn them into far more profitable enterprises. Let’s talk a bit more about this.
Know the niche
To make money buying and selling websites, you need to know you are entering a market where there is money to be made.
You may be a huge fan of mobile phones, tablets, and laptops, but sorry, this market is cornered pretty well already. And any open opportunities will cost a fortune to acquire.
Buying a website in this niche and hoping to flip it would be asking for trouble.
However, there are lots of other niches out there where there is money to be made without having to compete with major companies who already have a stronghold.
Sites such as Google Trends, Reddit and Buzzsumo can give you an idea as to what people are talking about. Then you can reverse engineer sites that are already performing well in this niche and see if you can beat them.
Making money doing this is about buying low and selling high, something you won’t be able to do if you don’t first do your homework.
Search engine optimization (SEO) is a must for nearly every business. It helps them get in front of potential customers more quickly and easily, and it provides a fantastic return.
When looking at sites, ask yourself what the SEO potential is. Can you optimize existing content? Are there some high-value keywords you think this site could rank for? What is the current backlink profile of the site?
Using tools such as ahrefs will help you figure out if the site you are going after is doing well in search engines or has the potential to do well.
Also, if you can get a site performing well, this will boost its value when you do decide to sell it, generating a higher return.
Get some help
When venturing into these things, there might be a tendency to want to do a lot of it yourself. After all, you’re trying to turn around and sell it and it costs money to get people to do things for you.
This isn’t really the right attitude. While you do want to keep expenses low, you may need to have some content or web design. Unless you are a whiz or have tons of free time on your hands, get someone to do it for you.
The key to making this work, though, is to have a strategy. If you are haphazardly paying for content or other services, you will sink a lot of money into this venture more quickly than you want.
If you instead know what type of content you want, and then go out and get it, it will have high impact and therefore will produce a return that is worth the investment.
You may also want to seek help in the buying/selling process. Just like in real estate, there are online brokers who specialize in this exact thing.
They will work with you to determine the value of the business that you are trying to sell and can use their networks to help find potential buyers. This is recommended for sites like Flippa.
Here, people are often looking for a deal, so selling your website on this platform may make it tough to get the best price. It is, however, a good place to find a website to invest in.
Again, don’t expect to become a millionaire overnight when buying and selling websites. You need to have a good idea of what you are getting into and you need to have a plan. But if you do your research and follow these tips, you may very well just find yourself making serious money flipping digital real estate.
About the Author: Jock specializes in the buying/selling and appraisal of online businesses. He got his start working in online marketing, then transitioned to a consultant role. His primary goal has always been on helping others find success in entrepreneurship. Connect with him on LinkedIn.