How a Flipper Undersold a Site and the Website Flipping Lessons Learned from It
Tuesday, August 31st, 2010In anything we do, sometimes we have to learn a lesson the hard way. But it isn’t something that should discourage you. As a matter of fact, as you have probably learned from your past business dealings, adversity even makes you stronger. Here is an experience of a website flipper who undersold her website — in effect, a $14k-mistake!
To make a long story short, she sold one of her websites for $1,850 to a website flipper, who in turn, made an enormous profit by selling it for $16,000 just four months after. An expensive lesson, I know, but a lesson just the same.
Perhaps you may say that the buyer who got the site for less than $2k did a terribly good job of turning the site around in such a short time, but it’s really not that. The mistake was made when the original seller failed to track the revenue of the site prior to selling it. On the Flippa auction, she indicated that the site earned $200 for the past two months. When the site sold however, it was closer to earning $1,000 per month. That was absolutely a major bargain for the buyer.
But instead of dwelling on her bad business move, she moved forward learning from her mistake and searched for more rewarding opportunities.
Other than her website flipping business, she enjoys income from affiliate marketing. In her years of being in internet marketing, she was able to develop a formula to which she attributes her success. Her formula is: seek out a frequently searched keyword, know and investigate the competition, study the profitability for the niche, and find a product within the niche that consumers will want to buy.
Also, for her core strategy, she focuses on generating organic search traffic. She looks for consumer-oriented items with a high price tag to get the higher affiliate commissions. She also chooses niches that she is interested in she gets to enjoy the work while making a living.
Finally, this experienced website flipper has some smart advice for buyers. She recommends that you know exactly what type of site you’re buying. If you are able to identify what you want from the beginning, you’ll be able to create the most suitable methods to improve and promote the site. And never forget to “enjoy the ride!” while you are knowing your way around the website flipping biz.