Website Flipping 101 – 10 Steps to Quick VRE Cash

January 8th, 2010 | 32 comments

website flipping This is a guest post by a friend, former student and successful “Site Flipper,” Michelle Adams. Michelle has been flipping Virtual Real Estate (VRE) for a while now with a great deal of success. If I were looking to get into that business model, Michelle is who I would take advice from on the subject.

If you’re like most people who are keen to make money online you’ve more than likely been focusing on methods that will generate passive income: income where you do the work once and get paid over and over again. Passive income is arguably the best sort of income there is, however it can take time to establish. As the months go by you can’t help but wonder if you’ll ever earn enough to go on that elusive overseas holiday or pay off that annoying credit card debt let alone quit your J.O.B.

The good news is there are plenty of ways to supplement your income with more active income methods such as article and ebook writing, blog commenting, link building or even web design. Whether you have a specific need such as school fees, a holiday or a huge electricity bill, there are ways to make money online more quickly whilst your passive businesses mature.

One method that I’ve enjoyed earning some extra cash with is selling web property. From domain names right through to Squidoo lenses; people are out there looking to buy virtual real estate.

There are so many ways to develop web property to sell such as building brand new sites with the intention of selling them immediately, or building sites up to be consistent earners and selling them as established businesses.

Then there’s site flipping in its purest form whereby you purchase an existing website, make some improvements then sell it for more than you initially paid: think ‘house flipping’ only without the need for hundreds of thousands of dollars just to enter the market and get your feet wet!

You might previously have had a keen interest in site flipping but then shied away from it for fear of the technical transfer amongst other things. I completely understand that fear because I felt it once too but rest assured it’s not that hard and after only a couple of site transfers you’ll start to feel quite confident.

So where do you begin if you want to finally jump in and test the site flipping waters?

Walking before you run is always a good motto to live by so with that being said I suggest you create a basic site to sell with your main goal being to get a feel for the process rather than focusing solely on profit.

Below is a summary of the ten steps you can follow to get you started building a basic blog to sell. These steps are covered in detail in my free QuikCash ebook.

10 Step Summary

Step 1: Market Selection
Flippa.com is the number one marketplace for selling sites and is a great place to get a feel for what buyers are looking for. By visiting the Just Sold tab you’ll be able to literally view what the more popular sites and niches are. You can also get an idea of what markets are hot by visiting sites such as Dummies.com and viewing popular articles at article directories.

Step 2: Domain Name
.com domains have a higher perceived value so where possible grab one. .org and .net are fine too if you’re focusing on a keyword rich domain name but avoid .info simply because they are perceived as the lowest value and could put buyers off.

Step 3: Hosting & Cpanel Set Up
For all sites you plan to sell I highly recommend you set them up on their own account. A reseller account is not too expensive and really is your best option when it comes to access and keeping the site transfer process clean and simple.

Step 4: Nameservers
After you have set up the account where the new site will reside you need to note down the nameservers of that account and then adjust them at your domain register. It can take up to 48 hours with some registers before the domain resolves to the new servers.

Step 5: WordPress
As I’ve mentioned above, there are many different ways you can develop web property to sell, for this example though I’ll focus specifically on a WordPress blog. WordPress is very popular and creating a blog this way can be simple for you to build and for the buyer to update. You can install WordPress automatically using Fantastico which is offered by most hosting providers.

Plugins: Adding plugins to the site is a quick and easy way to add value to the package you’re creating. The popular All In One SEO Pack is always good to add as well as Sociable and Easy Privacy Policy. There are plenty more to choose from such as image sliders and video feeds that can lend themselves to certain markets.

Step 6: Adding Content
I recommend you add at least eight articles to the site but ten if you can manage it. If your content is unique then your site will appeal to more buyers but it is possible to sell sites with PLR content.

Keywords: Writing your content around keywords with reasonable search volume that are not too competitive will get the site off on the right foot. The Google Keyword Tool is a free option to help you with keyword selection.

Step 7: Theme Selection
For basic sites you can use a free WordPress theme but be sure you are clear on the usage rights as many are for personal use only. I use the Artisteer WordPress theme builder software to create my own basic blog themes.

Theme Installation: Once you’ve selected your theme you can upload it to your blog using an FTP program such as FileZilla.

Step 8: Monetization
Adding various monetization methods to the site can help potential buyers get a good idea of ‘what’s possible’. You can add Amazon widgets, ClickBank products, CPA offers and AdSense ads to name a few.

Step 9: List For Sale
Flippa.com is my preferred auction marketplace, it does cost money though and that money is not refundable if your site doesn’t sell so you need to be aware of that.

Your auction listing copy is your opportunity to influence potential buyers as to why your site is worth considering. Below is a summary of what you should include as a minimum:

• A catchy headline.
• A short summary of the site.
• The domain name.
• An overview of the site in list format.
• Describe how the site will make money.
• Explain why you’re selling the site.
• Point out why your site is a better buy than the hundreds of other sites for sale.
• List any bonuses or extra services you offer for anyone who buys at the BIN (buy it now) price.
• List out and answer frequently asked questions such as what happens after the sale, where the domain name is registered, what hosting you offer if any and who will move the site.

One mistake I see a lot of sellers make is over pricing their sites. You will probably find yourself convinced that the sites you build are worth triple what they really are in terms of what the market is willing to pay, this can set your auction off in a downward spiral from the get go. You overprice it, which puts buyers off, whereas if you price the site “to sell”, ie make it almost too good to refuse, then you are more likely to receive early bids or at least some questions or private messages.

Expecting $300 for a basic blog is in the main unrealistic especially as a new seller who has no previous feedback history, so keep things like that in mind when you set the reserve and BIN (buy it now) price for your sites.

Step 10: Site Transfer
Be prepared for the fact that not every site will sell first time every time and remember that failure can be your best teacher. When it comes time to transferring your first site it can be daunting but try not to let it overwhelm you. You can find a step-by-step guide in my free QuikCash ebook where it’s all laid out for you in Step 10. Once you complete your first transfer it’s time to celebrate!

Starting off selling a basic blog at the same time as learning the process can leave you feeling like it’s too much effort for not enough reward. Like everything though, you will improve over time and be able to move your way up to selling premium blogs, established sites, membership sites and everything in between!

img credit: Ron Dauphin

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32 comments

Max Z (1 comments.)
8th January, 2010 at 3:17 pm

With regards to step #7, creating a custom theme can actually bring in more money for a site.

In my experience, the more exclusive or “custom” the site/theme/content is — the more attractive the proposition of purchasing it becomes.

Most buyers out there know how easy it is to simply use a free theme — but if you went to the effort of getting something exclusive created, they know it’s not going to be some cheap and tacky site…
Arafat Hossain Piyada (1 comments.)
8th January, 2010 at 3:33 pm

I never thought selling a website can be a business but now this article give me some idea on it and will try to utilize it.
Stef (11 comments.)
9th January, 2010 at 2:31 pm

I have been trying to flip domains, more or less following the steps above, except I am on digital point and not on flippa.com : to expensive for a beginner like me I find.

“Trying” is the important word, as not much success, especially I am not great in “step 9″, so would appreciate if you elaborate on:
• How to write a catchy headline.
• Describe how the site will make money: I just give monthly earnings, what do you suggest?
• Explain why you’re selling the site: isn’t “flipping” the obvious answer on flippa.com? Most likely not since you want people to explain.
• Point out why your site is a better buy than the hundreds of other sites for sale: how do you do that as a person looking for a fashion doain won’t be interested in my travel site.
• List any bonuses or extra services you offer for anyone who buys at the BIN (buy it now) price: any example of bonuses?

Thanks,

Stef
Michelle Adams (9 comments.)
9th January, 2010 at 4:41 pm

@Stef My focus has been on selling websites not domain flipping. Perhaps domain investing forums would be a good place to network and pick up some tips.

Regarding step 9 – all of the steps have been elaborated on in the free QuikCash ebook which is linked to in the post.
Stef (11 comments.)
10th January, 2010 at 3:57 am

@Michelle

Thanks for your answer. Downloaded your ebook and got all my above questions answered

Took your survey and asked a few more questions there.

And got a better idea of the jargon: I am not a crude domain flipper either but like you elaborate in your ebook: I want to change a domain to a little website and sell for some fast Paypal cash.
kesseff (1 comments.)
11th January, 2010 at 10:25 am

thanks for a great post. writing your own content for a website you’re just planning to sell is pretty easy and will worth more than a one based on PLR
Arun Pal Singh (10 comments.)
11th January, 2010 at 7:32 pm

I am not into flipping busines but this article has a very good info for the one who wants to be in that business.
Good work.
Joe - musica para el movil (1 comments.)
12th January, 2010 at 12:30 pm

“Step 3: Hosting & Cpanel Set Up”

I am completely lost here. We need to host the site we want to sell?
Stef (11 comments.)
12th January, 2010 at 3:45 pm

@kesseff

As far as I understand Michelle’s approach, she goes the path of least work for fastest result. Unless you are a really fast writer, adding PRL articles goes utterly fast… if you have a huge PRL library available of course.
Paul (10 comments.)
12th January, 2010 at 3:53 pm

I’ve been thinking about siteflipping for quite some time but have not jumped in yet. It sounds like too much technical work, but these tips may sway me over.
Paul
Rebec (3 comments.)
12th January, 2010 at 4:30 pm

In the past I wasn’t too interested in site flipping, but I’m beginning to think that learning at least how to quickly build (operative word: quickly) sites could be an asset just knowing the steps.

I’ll begin with Michelle’s ebook..it’s title has my favorite word: quick.
carl friedman (2 comments.)
12th January, 2010 at 5:03 pm

I have read Michelle’s eBook and am subscribed to her list. This article is very good and I think I’ll read the book again and reconsider getting into this business. What I like about Michelle is her obvious honesty and integrity (like Josh). No hype.
Thanks,
Carlton
Brenda Simard (5 comments.)
12th January, 2010 at 5:37 pm

Great post about selling your websites.

I have several Adsense sites where the domain names are coming up for renewal but they aren’t making me much money. So I decided to sell 3 to test the waters on Flippa and they sold for the Buy It Now price. Rookie luck I’m sure.

Now I’m working with the buyer to move them over to him and we are having issues.

Think I’ll read Michelle’s report to find out how to proceed.

Thanks Michelle and Josh

Brenda
Allyn (14 comments.)
12th January, 2010 at 5:50 pm

Hi Michelle,
as always, very nice article, well written. I have sold a few very large sites to private buyers, but I do like the idea of flipping blogs in the range of $400.
QUESTION: As far as transfer, if I host the site on my own reseller, (each site has its own cpanel), can’t I just tell the buyer he has 3 months to vacate everything on his own? This way, after three months, I can charge him hosting fees?
Just wondering what you though of that.
AL
Peggy Baron (11 comments.)
12th January, 2010 at 6:02 pm

Too funny, I just “found” Michelle’s site last week and read her book. I’m putting together my first flip now.

Could you elaborate a little more on how to price it when it’s a brand new site and doesn’t have any income history yet?

Thanks,
Peggy
Michelle Adams (9 comments.)
13th January, 2010 at 12:31 am

@Joe I recommend you set each site up on its own cpanel using a reseller account. Some buyers are happy to transfer the site themselves so rather than give them access to your entire hosting account (which I would NEVER do), you can simply hand them the log in details for their specific cpanel. Once they’ve moved the site to their own hosting you then cancel that particular account in your WHM (web host manager).

Some buyers don’t already have hosting and in that case you can provide them with a few months free hosting on a separate cpanel whilst they sort themselves out.

If you’re interested in actually reselling hosting you can offer that to your customer at a price that suits you both, say $10 a month. I’ve seen sellers sell sites very cheap at eBay with their main intention being to offer ongoing hosting, it can be lucrative but it’s not something I’ve focused on.

Last but definitely not least: Having individual cpanels leaves much less room for error during the technical site transfer process. It’s much easier to locate the correct files when you’re looking for one database etc as opposed to a myriad of sites and files, this can be especially true for those who aren’t very experienced with the technical side.

@Paul There are technical aspects to this and when it’s stepped out on virtual paper it looks and sounds long and cumbersome, but when you have a little bit of experience you can be in and out of a site transfer in 10 to 20 minutes. Of course there are exceptions but in the main it’s relatively quick and easy.

@Brenda Congrats on your sales! If you get really stuck with the transfers send me a note via the contact page at my blog and I’ll see if I can help you determine the problem.

@Allyn Great questions, I’ve covered off most of them in my response to Joe above.
Specifically telling a buyer they have three months to vacate and they are on their own would not be the approach I’d recommend. Many potential buyers worry about the site transfer; highlighting in your auction listing that you offer free transfers and after sales support helps address one of their major objections to buying.

If you really want to be completely hands off then I would suggest as a minimum you create comprehensive tutorials in video and PDF and give those to your buyers.

@Peggy Start up sites generally sell for between $50 to $400, some for less and some for a great deal more. That’s a wide range I know but there are many factors that will determine the final bid price. Things such as the amount and quality of the content, niche, domain, design, theme and generally how competitive the marketplace is at the time. There are other factors too and not all are about the site itself.

There are no guarantees of what price your sites will fetch and the market is quite volatile – to give you an idea of the variations here are two examples of sites I’ve sold:
A very basic blog which sold for $127:
http://www.healthyeatinghints.com/

A premium niche blog which sold for $297:
http://www.meditationmindfulness.com/

I hope that’s helpful, good luck with your first flip!
Jose│Internet Marketing Coach (1 comments.)
13th January, 2010 at 12:54 am

Although flipping Virtual Real Estate is not my business model, I find Michelle’s post interesting. Very clear.

“Point out why your site is a better buy than the hundreds of other sites for sale.”

Aside from the technical skills, you really have to be good in marketing in order to succeed in this business model.

Thanks Josh for this interesting post.

Jose
Stef (11 comments.)
13th January, 2010 at 1:31 am

@Brenda,

Feel free to share your issues about the move, so we can solve them.

How much were your sites earning a month and how much was your flippa selling BIN?

In my experience in moving flipped sites, it become a bit “sturdy” when you only know 1 way how to move a site and your buyer only knows another way.

Next time you flip a site, state clearly how you offer your site to be moved and how much time you will give them to do that. Otherwise you could end up like me and my buyer who asked: “can I still host the site on your server until I have sorted out things?” Of course the answer was yes and the site – only paid for domain and site – still runs nicely on my server as was.

For now: make sure to get your transfer done and ask more questions here if needed. Mostly understanding the buyer’s wishes in emails is more difficult than doing the actual transfer

With any issue, also ask your serverhost for a solution and communicate to your buyer that the delay is caused because you are waiting for your serverhost to respond to you.

Hope that helps, if not, I will explain better when you ask more questions
Stef (11 comments.)
13th January, 2010 at 1:49 am

@Michelle

You do make beautiful websites!

Is it safe to say that when flipping domains with new sites: how the site looks is a more convincing selling strategy than the actual text content?
Flipping Untangled | Michelle Adams
13th January, 2010 at 4:39 am

[...] up in a virtual tangled mess if you dare try it, then you might want to check out my guest post at Josh Spaulding’s blog. I’ve covered off the basics on how to get started and there have been a lot of great [...]
Peggy Baron (11 comments.)
13th January, 2010 at 1:11 pm

Thanks for providing the blog examples, Michelle!

I’ve been all over the “just sold” on Flippa and noticing the differences in the sites and what price they command for what they offer.

Peggy
Michelle Adams (9 comments.)
14th January, 2010 at 8:33 am

@Stef No that is not safe to say. Every potential buyer has different wants and needs, it’s just a matter of appealing to as many of those needs as you can. Some quite rightly don’t give two hoots what the site looks like and others hold it in high regard. It is not black and white.

@Peggy Great to know you’re doing some research. I’m happy to look over your auction listing copy before it goes up if you need. Just contact me via my blog.
Stef (11 comments.)
14th January, 2010 at 10:04 am

@Michelle

I do find your pages much more appealing to the eye than mine, so I thought like in selling non virtual real estate: staging is important.

Anyways, like you say: better to appeal to as many buyers’ needs as you can.

Thanks!
Missy (3 comments.)
15th January, 2010 at 12:54 am

I think ALOT of people would be surprised at how hungry people are for a good looking, well (niched) and well crafted site.

Yes! site flipping is a business model, but it’s also a viable method for obtaining a site without having to do alot of the initial up front work. There’s demand and YOU can be the one who meets this demand.

Great article, Michelle.

Cheers,
Missy
Boss
15th January, 2010 at 1:05 am

Very nice information Michelle.

I just have a few questions if you don’t mind…

Do you only sell websites that are freshly made? Are the pages indexed when you sell them, and is there a reason why you don’t try to get them indexed or earning $$$ first?

I also have a Developers Artisteer Account, and love the ease of being able to design and modify a theme, but I don’t know how to code, so was wondering how you go about creating widget areas? Do you use certain plugins, or do you just code them yourself?

Many Thanks

Boss
Stef (11 comments.)
15th January, 2010 at 1:35 am

@All getting fipping rich together:

From experience I learned that forming a small group of like-minded people accelerates reaching the goal they are aiming to.

Who is interested in forming a small mailing group where flippers can ask questions and get answers, with some experienced member like Michelle (e.g. a private yahoogroups, or simple cc emails) ?

Aim of the group is to share experiences in emails, meaning everybody can email and participate.

Aim is not another list where 1 guru tries to sell this or that – with all respect to your IM model guru Josh

Who is intersted as well? All feedback welcome,

Cheers,
Stef
Stef (11 comments.)
16th January, 2010 at 1:15 am

@Boss

For your widget question, sharing my experience: after playing around with Artisteer and saving a Wordpress theme, I uploaded it and activated it on a blog of mine.
Then went into Wordpress widget section (right under the themes section in Appearence) to see that I can drop widgets in the sidebar.

So do I understand you right, with your theme, you cannot drag and drop any widget into the sidebar (make sure the sidebar’s box is ‘dropped open’, meaning you see a drak header saying “sidebar” and dark grey box below to drag the widgets in). Please let us know how things look on your side?

Some plugings you can “let work” if you copy/paste a line of code (explained in the plugin help file – or so it should – ) into the sidebar.php that’s in your theme.

Hope Michelle will answer more and if anything not well explained by me, please ask again.
Michelle Adams (9 comments.)
17th January, 2010 at 3:38 am

@Boss The majority of the sites I’ve sold are brand new. I always ensure the site is indexed before I sell it. Selling sites before they’re established is a quick way to make money.

In regards to widgets, I simply use the widgets in the WordPress editor. If there is something more complex I’m trying to achieve there is usually a plugin for it. For example an image slider comes built into premium themes but for Artisteer I’d use a plugin. Hope that helps.
Dwayne (1 comments.)
18th January, 2010 at 12:05 am

Pretty damn good content, never dove into this part of internet marketing…

But a great thing to show my coaching clients on good ways for simple money…

-D
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29th January, 2010 at 8:01 am

[...] of their own.Want to Invest in Domains? Here Are The 7 Golden Rules by Andrei from DomainingTips.comWebsite Flipping 101 – 10 Steps to Quick VRE Cash by Michelle AdamsIn the world of internet marketing, you’ve got to give something of real value [...]
SEO Agency
30th January, 2010 at 4:46 pm

Are there any places you can list sites for sale that don’t have a listing fee and you only pay if you make a sale. $19 seems quite high for something that might not sell.
Gary (1 comments.)
27th February, 2010 at 11:03 pm

Nice info. I’m looking to take a break from house flipping so I’ve been exploring the options of website flipping. Same basic principles it seems, just different mediums.