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"Website Flipping Business": The Internet Real Estate Business

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In the real estate business, "flippers" are people who buy old houses, renovate them, and sell for a profit after a short term. This can be a very profitable business model, yet not many can join the foray because of the capital limitation of the high real estate price.

What many people don't know, however, is that similar things can be applied to the internet. The internet itself is a real estate, and websites are its properties. In fact, website flipping has been around since the dawn of the internet since the 1990s, although many things have changed since then.

A website flipper will buy a website for a discounted price, "renovate" the website so that it's profitable, and then can either sell it to the next buyer or can keep it for a passive revenue. With a website prices are significantly less than a house (excepting you want to buy the obvious giants), this venture can be easier to enter,and can be a fun,exciting, and profitable business.

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Here are a few things to help get you started.

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1. Where to Buy Websites?
Many website marketplaces are available on the internet. The biggest and most famous one is flippa (www.flippa.com), and might be the only one you need. However, alternatives are available, such as www.afternic.com/, www.flipwebsites.com/, and even eBay.

Be aware that as with any online transaction, scammers are present, so be careful and do a thorough checking before making any transaction.

2. Startup Cost
A website price can vary from as low as $5 to above hundreds of thousands of Dollars, so theoretically, you can start with $5. However, for an optimum bare minimum, you should have at least $2,000, which besides a website purchase, will be spent on the "renovation" process such as SEO process, hosting, social media and content marketing, etc.

3. Monetizing
To understand the monetizing process, we must first understand what determines the value of a website.

This can be explained with more intricate, complicated lectures, and many online resources are available, but in general, a website will be valued on its popularity and relevancy. In short, the number of people that visits the website(traffic), and its relevance to the industry (keyword) it was in.

Other jargons or techniques are aimed toward the same purpose, i.e. SEO's and social media marketing's mission is to have more traffic in the end, while SEO also focuses on optimizing the website content so that it's more relevant.

After you achieve both popularity and relevance, your option is to sell to another bidder or to 'rent' it for advertisements. Quite similar to the "real" real estate, wasn't it?

Earning Potential

Calculating the earning potential of this business will be difficult, as it will involve many factors and possibilities. However, an average performance website can generate $500 a month from Google AdSense or similar monetizing scheme. Provided you got five websites with similar performance; you can generate $2,500 monthly.

Great website flippers can make the tens of thousands from literally $100 websites, so the potential is unlimited. Success in this business will depend on your internet knowledge, digital marketing skills, and instinct to see opportunities.