[quote float=right style=boxed]Be as honest with the potential buyers as you can. No one likes sneaky sellers that is common sense.[/quote]Making money through PPC or CPM ads is pretty common way of monetizing websites. However more recently, Flipping websites is becoming more popular. Where you buy a small website and put efforts on it and sell it later for higher price. Or alternatively, you build a website from scratch, establish it and sell it to the new owner, who doesn’t like or doesn’t have enough skills to establish a website from the scratch.
And this is called ‘Website Flipping’ hence Flippa.com came into existence the leading marketplace for selling and buying web properties. The term flipping originated from the real estate industry, where an investor would buy an old house, renovate it, and then sell it at higher price.
Anyway, below are the basic points which you should take into account before you are ready to sell your website on Flippa.
- Be as honest with the potential buyers as you can. No one likes sneaky sellers that is common sense.
- Be straight forward and candid with the potential buyer questions. Neither be rude nor go below your self-esteem for some bucks.
- If there is any negative point about your website, make sure to make it crystal clear to the potential buyer. It might sell for a little less, but you would have successful deal at the end of the day, rather than, ending up auctioning your website again in the case of deal failure.
- Try to offer all the statistics and analytics data and monetization income publicly, this saves a lot of time on unnecessary private messages from the potential buyers, and deal closes fast.
- Give a brief reason why are you selling the website, whatever it is, be straightforward.
- Give brief suggestions, how the new buyer can keep the site running, growing and making money.
- Before accepting the bid, make sure twice that the buyer is ‘genuine’ – there are many guys (possibly your rivals) on Flippa market who would create ‘fake’ accounts to ruin your listing by making fake bids.
- Always ask for a realistic price. Don’t expect anyone to buy a bicycle for the price of Merce. Unrealistic price demand can negatively affect your listing as well as your profile repute on the Flippa Marketplace. Buyers on Flippa are more smarter than you think you are. See below how to determine the price of a website.
On Flippa, websites are sold and valued according to the below Formula which is pretty simple.
a = Yearly Income in Dollars
b = Value Factor, Website own worth which is between 1 to 10 normally.
Flippa Price = a x b
There are various factors which determine the website worth. Some of them are listed below.
- Technology used. Either Open Source CMS or Custom built.
- In case of Custom built, its code structure matters as well.
- Age of Site
- Traffic Sources, More is better.
- Niche Authority of the site
- Monetization methods
- Loyal Readership
- Content level
For Instance If a WordPress based blog yearly income is $25,000. and It’s very much established both in terms of traffic and income, and has some authority too in its niche. Then its value factor would be between 2-3. So taking this into account you can figure how much would it sell for. My idea is between $40K to $60K considering current trends on Flippa Marketplace.