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Fast Re-Flip a Website [QUESTION]

Discussion in 'General Business' started by luizeba, Aug 25, 2013.

  1. #1
    Hello guys [​IMG]

    I'm not very experienced with flipping websites, so here I am to ask one thing to you guys about the mentallity of website buyers, and if my idea can work.

    I've found a good website on Flippa that I'm sure that I can double it's revenue, or even more. The ad placement is shitty, so I can fix everything in one night.
    I don't want to stay with the website for a long time, I just want to BUY it, make the ads improvements, and SELL it back on Flippa in 15-30 days.

    The question is: Does the regular website buyer in Flippa accept this kind of thing? I mean, if you find a listing of a website sold 1 month ago, with the same traffic of one month ago, but with double of revenue, would it sell easily?

    The example of my idea is:
    The website, now, has 100$ monthly revenue
    I buy it for 15 monthly revenue, for 1.500$
    I make the changes and in the next 30 days it earns 200$
    I go back to Flippa and lists the website for 12 monthly revenue, or 2.400$ (12 months to sell fast)

    Would YOU buy the site this second time, for a more profitable monthly revenue, but with the site already optimized?
    luizeba, Aug 25, 2013 IP
  2. matt_62

    matt_62 Notable Member

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    oh boy.....
    you are going to pay 15 x monthly revenue now? If so, everyone on this forum will be your best friend!

    But tell me, what would happen if your adsense gets banned? how much will the site be worth then?
    is there anything valuable about the site besides the revenue? What if you get stuck with it? is it a site you would be happy to be stuck with?
    Right now, I am seeing sites on flippa, that were listed for far less maybe 3 -5x monthly income. If you were to pay 15x monthly income, you would need to triple the income at least in order to guarantee your money back, sure you might get 10x (or 12x) but that might be a slow sell.

    YES, most buyers will know if a site was sold before. For me, when I see things being resold, I just assume that their friend brought the site by accident (you know, fake bidders). Usually when things are relisted, (by the same owner) the bidding is lower the second and third times. I have no idea what impact it would have though if it is sold by a different owner as the few times I see this happening, I never bother to bid or watch the auction (I just walk away) so I got no idea.

    One thing to note is that just because it earns "$200" in one month, and you sell it for 10x monthly income, does not mean that the site is worth "$2000". If the site has been earning $100 on average, for 2 months, $200 for the third month, it puts the average at $133 = $1333.....
    its not uncommon for sites to have some spikes in income (game sites tend to have spikes that co-incide with school holidays for some strange reason...). Buyers would never expect one months income to represent what they can expect over the year, realistically the 3 month average is a better estimate of the sites income.

    Additionally, someone seeing that the site has a history of low income, and suddenly has doubled it, may simply think that you are participating in paid to click, or buying traffic etc.
    Overall, you would probly need to keep the site for 3 months, simply to show reliable income proofs, as well, it looks better then selling a site just days after buying it.

    Here is my advice. Why not offer to work in partnerships for people that plan to sell sites. Use your skills to fix up their sites, and to help them improve their income, and then take a commission from the final sale.
    Other then that, dont buy sites that you would not buy or keep if the income changed for the worse. PM me if you wanna hear what happened to me when I brought a site solely based on its ad income and nothing else.
    matt_62, Aug 25, 2013 IP
    Helge Sverre likes this.
  3. thefandango

    thefandango Active Member

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    You need to do some serious due diligence work and also look at the sites long term stats. Look at comparables to see what is is actually worth - your guess seems way out.
    thefandango, Aug 27, 2013 IP
  4. John Delewese

    John Delewese Member

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    Why not look for PLR that comes with a web site? You would get it for way less than on Flippa. You would rebuild it the way you want it, get it earning revenue and then list it on Flippa.
    Last edited: Aug 29, 2013
    John Delewese, Aug 29, 2013 IP