Flipping Websites for Profit

Ok, I am going to introduce you guy to a concept that most of us are already familiar with. Who doesn't have a homeboy, or know somebody that can sells drugs, or flip drugs for money? I mean I do not but I know other people who have friends that do. Anyway, its the same concept here. All you are doing is buying a website for a low price, increasing the equity, and then selling the website at a higher price for a profit. It's kinda like what you see on those real estate TV shows. They buy the house, fix the house up, and then sell it for a higher price then for what they bought house.
The main principal to this game is a simple formula


Principle + Equity= Profit
To plainly put it, the price of what you bought it for, plus how valuable the product is to the buyer, will equal profit in your pocket.  That is the concept. The website that you buy should already be generating cash flow from either the users or the ads that are on the website. If it is not doing so already then play it smart. Ask yourself does this website have the potential to generate cash flow? What are you are really asking yourself is does this website have the potential for increase traffic.

On the average a blog website such as this one is going to going to have about 300 visits per day. About 1-2 of those people are going to click on your ads that are on the page. So to increase traffic you are most likely going to have to the raise the equity or the value of the website. In other words you are going to make people want to come to the website and keep them coming back. Go look at the some of the websites you are frequently visit, and ask yourself what is making you comeback to that website.

You also have to keep in mind the longer you own the website the more time you have to build its equity. When it comes time to sell the website, you cash out on the equity.

The Importance of Assets
What I mean by the word assets here is something very simple. Does the website have a mailing list, traffic, domains, YouTube channels? If the website doesn't have these assets here's your chance to build up the equity and add value. Find what the website is missing and execute on exactly that. I've seen several websites increase their value by simply adding  YouTube channel and going viral. Look at VladTv.com. All he did was add a YouTube Channel, and interview people, let people like us leave comments, and now he has a very equitable website. What started a lot of people with going to his website was email. Whenever you give your email your email address online you are giving that person and any other person affiliated with them permission to submit emails to you. So to simply put it a lot of people did not start going to VladTV.com. com because they like Vlad, they came to the website because he effectively built the assets. I am not  hating on you Vlad.

There are a lot of other things you can do to a website to improve it's value. You can add a catchy phrase, improves its speed by caching, improve the content, add personality to the content by being obnoxious, and improving the design. All in all it's going to depend on how much you want to put into it. Stay tuned for the Pt. 2 of Flipping Websites. I will go over how to sell the website once you added the assets.