How to Make Money from Home Buying and Selling Websites
How to Make Money from Home Buying and Selling Websites
Starting and running your own website can be a great way to make working from home a reality. However, there are other ways you can make money with websites that don’t actually involve you running them. Much like the real estate market, you can buy and sell websites for a nice profit if you know what to look for and how to go through the process.
Let’s take a look at how this works so that you can get started right away:
Where to find Buyers and Sellers:
There are a couple of different places where you can find people looking to buy and sell a website, so let’s look at these different options and discuss their advantages and disadvantages.
#1 Public Marketplaces
Right now, there are several different websites you can use to list your business for sale. They’ll help connect you with buyers that are ready to submit an offer. Expect to pay a fee to have your website listed, though, but know that this fee helps make sure your listing is exposed to a large number of potential buyers.
Some of the more popular marketplaces are Flippa and Ackwired, and what’s nice about these sites is that you are dealing with motivated buyers who are ready to make an offer right away, meaning you should be able to get your site sold rather quickly.
There is one downside to using public marketplaces: it’s hard to get a high asking price. Buyers that use marketplaces are always looking for a deal, and if you don’t undervalue the website, you may find that it’s hard to actually get it sold.
Another potential drawback to these platforms is that the large number of listings and huge publicity that marketplaces receive means there are a large number of scams, too You’ll have to tread lightly and make sure you’re using a reputable escrow service to get the deal done.
When you want to make the process as easy as possible and position your website to get the highest asking price, you’ll want to work with a broker to help you sell your website.
Brokers can help you uncover the true value of your website, identify the perfect buyers and even pitch your website to these groups or individuals. You won’t have to worry about taking care of any documents or negotiating the contract, and you can rely on the broker to close the deal on your behalf.
They can also help you find new websites to buy. Since they deal with both buyers and sellers, they are often very helpful in connecting the two parties so that everyone can find the right deal. So, if you work with a broker to sell a website, consider letting him or her know you’re also interested in buying one, as they can use their network to help you find something to your liking.
#3 Personal Networks
Another strategy you can use is to handle the entire process by yourself. You will have to locate the buyers, give them the information they need to move forward, negotiate your way through the deal, and handle the paperwork to finalize the deal.
For the work you’re putting in, though, you save on both listing fees through a public marketplace and the fees that a broker charges for their services.
However, this can be a bit trickier if you’re new to this game, as you’ll likely need to reach out to fellow bloggers, advertisers or competitors to be able to generate interest for the site and find a buyer. This can be difficult in the beginning and is one of the major downsides to trying to go it alone.
What to look for in sites you buy
Now that you know where to look for buyers and sellers, let’s take a look at what you should be looking for when deciding whether or not to buy the site.
What’s it worth?
Generally speaking, a website is worth 2.5 times its yearly revenue, so you’ll want to get a hold of the sites financial records to be able to make an offer in line with what the site is worth. Next, you’ll want to look at its position in the marketplace, its potential for growth and any risks it might be facing in the future. You can use these to raise or lower your asking/offering price to make sure you’re getting the best deal.
How much work is required to run it?
To make a profit buying and selling websites, you’ll need to spend a little time working on the site to make it more valuable on the open market. Take a look at how the site is set up now to see if you can easily replicate processes to make the website work without having to spend too much time on it. This practice ceases to be profitable if you’re sinking hours and hours into running the site and making it profitable. It should be a relatively turnkey operation.
What’s its SEO profile?
The way a site performs with search engines is a huge determiner of value. So, before you go into any purchase, have a look at the site’s backlink profile and see if it’s ranking for any valuable keywords. Buying a site Google already considers to be an authority is a huge boost, as it will make it easier for you to grow it and sell it for a higher price.
While running websites is certainly a great way to make money while working from home, you can expand this to website flipping, the buying and selling of websites, which can also bring you a nice income. And, since you’ll constantly be working on something new, it’s a good way to keep your work exciting and interesting.
About the Author: Jock is an entrepreneur who specializes in the buying and selling of websites. He has made his living buying, building and selling websites, and one of the things he enjoys using is helping others do the same so that they can enjoy the benefits of a flexible, work-at-home lifestyle.
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