Building up Tons of Traffic and Boosting Profit Margins to Flip Websites When you start off flipping websites, one of the hardest skills to master is that part that comes in between all the buying and the selling. As you should well know, flipping consists of buying a website for a certain price, and then selling it for a price that is higher. Needless to say, you’re going to have to provide some reason why your buyer would want to pay more than what you paid for the website, and that’s where the ‘in between’ part comes in. Basically, what goes on between the buying and selling stage is the portion of website flipping where you increase the value of the website. Although there are several ways in which this can be done, the two most appealing factors in the value of a website are simple: Traffic, and profit. Mastering the art of building tons of traffic, and boosting your profit margins, is something that most every marketer strives to do. After all, it is what marketers use their websites for – to sell products, or promote offers, both of which require traffic, and conversion rates that are as high a possible. Whether or not you are an expert in this, you’re going to find that the process is quite different when it comes to website flipping. Over the course of this guide, you’re going to be given a walkthrough into how to build traffic streams and up the profits of a given website in a manner that is most convincingly going to help you to flip it for more than you paid initially. Every section of this guide is tailored to concentrate on that final goal, so you should, by the end of this guide, know exactly what you need to do! Instead of just a list of instructions, or some vague explanation as to what you should be doing, we’re going to guide you through a methodical process that begins with actually understanding what you are doing. By firmly grasping the theory of flipping, you will find that everything else falls into place with ease. And as a result, you should have little or no problems when it actually comes time for you to implement what you’ve learnt for yourself.
Does that sound appealing enough to you? Well, assuming it does, let’s go ahead and get started!
Profit and Traffic: The Two Keys of Website Value Understandably, when someone looks at a website with an eye out to purchase it, they’re really asking themselves one question, “What is it that I can gain by buying this website?” When you consider the fact that most people who buy websites are marketers, and they’re looking to make a profit from the website itself, it stands to reason that the very first thing a prospective buyer would zoom in on is the profit figures of the website. Of course, everyone also knows that traffic is the lifeblood of any website, and so it is equally unsurprising that closely after profit, the traffic statistics of a website are bound to be scrutinized. Both of these factors, profit and traffic, are without a doubt the two most important things to buyers. And that, naturally, makes them both the two most important things that you need to focus on if you want to flip websites. Despite this, you would do well to realize that both profit and traffic are valued differently. How about we take a look at each individually, so that you can firmly establish for yourself what each of these key factors consists of. Then, you should be also able to see how they tie in to the value of a website.
Revenue and Profit Seeing as we’re going to be using both these terms, it is worthwhile defining them right now. Revenue is, in a nutshell, simply the amount of money that your website is earning on a monthly basis. On the other hand, profit is that amount, minus any and all expenses that your website incurs. Mostly, these expenses take the form of things such as hosting fees, domain fees, as well as advertising fees, in some cases. Depending on the type of website that you run, and revenue model that is used, you will find that your expenses do tend to vary from website to website. Of course, the number that is most important at the end of the day is your profit, so be sure that it is accurately stated. Essentially, revenue is earned through a number of ways online.
Among the many options that exist, some of the most popular ones include: 1. 2. 3. 4.
Advertising revenue Selling your own products Promoting affiliate products Promoting Cost Per Action (CPA) offers
Granted, there are other ways to earn money online, but these form the most used methods of turning traffic into customers. Some websites even use multiple methods of earning revenue, while others tend to focus on one, or at most too. Really, this is something that is up to you to decide on, but the fact remains that when you add all your earnings together, and subtract your expenses, you arrive at your profit. When any potential buyer is thinking about a purchase, and he or she looks at your profit figures, they’re bound to look at it in terms of what they could potentially be earning from your website. Therefore, if your website is pulling in $1,000 per month in profit, and you’re looking to sell it for an exorbitant price of about $100,000, any buyer would plainly see that it will take them 100 months to make up what they’ve spent. With online businesses, it is unlikely that a buyer would be willing to pay a price that amounts to 8 years worth of earnings from a website. On the flipside, if the price was instead about $12,000, which is the equivalent of a years earnings from the website, it would definitely appeal more. Quite simply, this is how profit ties in with the perceived value of a website.
Traffic Unlike revenue and profit, traffic is a slight bit more of a ‘wild card’. Since traffic consists of visitors to your website, and therefore, potential customers, it is definitely of value, but the exact value of traffic can be slightly unclear, and certainly very subjective. Remember this one fact, always: Not all traffic is equal. Unlike profit, where it doesn’t matter where it comes from, as long as it’s there, traffic is a completely different kettle of fish and there are numerous factors that could make one form of traffic totally better than another.