Site flipping has become a lucrative business, with marketers developing sites, or buying them cheaply, with the specific intent of flipping them quickly. John recently launched a product which helps website owners flip their sites.
I’d like to ask you about your product. It is a product that helps website owners to sell their sites.
Maximum Site Flipping is based on a case study of a site that I sold on Flippa, and covers all the strategies that I use to get the highest possible amount for the sites I sell. It has both PDF and video components. The main PDF covers the system in detail, and the videos show some specific walk throughs that were more effective in a more visual format.
How did you decide on the subject matter for your product?
I have direct experience with the subject matter, having sold a number of sites of my own, and knew that there are a lot of other marketers like me that have a number of sites that are earning money but don’t get the attention they need to really flourish. They are ideal for selling, since the buyer can improve the results with a bit of time and effort.
I didn’t have any particular misgivings, aside from my usual “fear” that the product isn’t going to sell as well as I hope J
My research consisted of the experience of selling my own sites. Over the course of a year or so, I sold a number of sites and fine-tuned the system. I didn’t start out with the intention of creating a product. That idea came later.
How have you marketed your product?
Primarily through forums, email and affiliates, with a bit of social media thrown in as well.
I’m active on the Warrior Forum and a couple of others. I’ve run a WSO on the Warrior Forum and I include a signature link to the product as well. I also post offers on the forums that have sections where members can do that, so I generate some sales that way.
I was running an Affiliate program for it when I first launched it, but the affiliate script I was using wasn’t working out so well for me. Too many technical issues that were eating up my time so I’m in the process of switching it over to a more reliable platform.
As for social media, I have a reasonable sized “list” of followers on Twitter, so I promote it there every once in a while, as well as on Facebook.
I notice that you give Giveaway Rights to your product to all purchasers. How does that help your business?
The giveaway rights are to one particular component of the product, which shows how to transfer websites to a new hosting account. This lets someone using the system to sell their own sites pass this information along to the buyer to help with the transfer process.
Is site selling as easy as listing your website for sale on a site like Flippa?
Yes and no. Listing the site is obviously the critical factor, since that’s how you get it in front of potential buyers, but how you market the site in your listing is critical to getting the best selling price.
What makes a desirable site, from a purchaser’s point of view?
There are a number of factors, but the primary ones are revenue, traffic, domain age and an existing email list, if one is included in the sale. Different buyers look for different things, but traffic and revenue are pretty standard for everyone.
It’s also important to show as much history as possible, and either stable or growing traffic and/or revenue. If either one is on the decline, that will affect the selling price.
Potential for increasing the site’s results is also important. If you can show the buyers that there is untapped potential that they can capitalize on to increase the revenue and traffic, that adds value.
Are there alternatives to Flippa?Any other marketplaces?
Yes, but none that I’ve found to be as effective. Although once you have several sales under your belt, you’ll start to develop your own buyer list which can be much more effective, even though it’s not technically a marketplace.
How do you market your sales?
It’s similar to any other promotion – the more places you can promote your offer, the better the results you’ll see. I promote my Flippa listings to my email list, on Facebook, on Twitter, etc. I also look for other sites in the same market and email the site owners directly with some details of the sale and a link to the listing on Flippa.
I know that some people develop sites specifically for a quick sale. Do you develop sites specifically for sale?
Yes, but not a “quick” sale. If I develop a site with the intention of selling it, I consider it at least a 6 month project. I don’t build sites purely to sell them right away – I build up the traffic and revenue first and then sell them for much more (or sometimes keep them if they’re really performing well).
How do you monetize your sites?
Monetization varies, depending on the site but for sites that I build with the intention to sell I generally use Ad sense with a few Amazon affiliate offers on sites where the topic suits them. There are a lot of buyers who are looking specifically for Ad-sense sites, so they are usually pretty easy to sell once you have a bit of revenue history.
I also prefer monetization methods that are easy to transfer to the buyer. Switching out the Adsense and Amazon codes is pretty straightforward. If you have a site with a lot of embedded affiliate links, it can be hard for the buyer to get them all changed, especially if it’s an affiliate program that can be harder to get accepted to, like eBay’s for example.
I have sold sites using other forms of monetization, like Chitika and Clickbank offers, but those were sites that I had built for my own use originally and then lost interest in or just didn’t have time to maintain properly. They still sold with no problems, but my list of past buyers weren’t as interested as they usually are in Adsense-based sites.
If I was to develop a site for a quick sale, what are the main points that should I consider?
Having some revenue and traffic make a big difference to the selling price, so it’s definitely better to let the site grow a bit first. But if you want to build a site to sell it right away, before there’s any earnings or traffic history, the key is to provide a lot of value. A quick blog filled with PLR content typically won’t get you much money (although you can hit it lucky sometimes) so it’s better to build something with a reasonable amount of unique content and solid market research that you can provide to the buyer to show the potential.
A nice looking site makes a big difference too, so spend a little time setting it up with a quality theme and maybe even some custom graphics.
How successful has your site selling business been? What’s your average ROI when you sell a site?
Quite successful. The ROI depends on the site, but for the sites that I build with the intention to sell, I typically invest $150-$200 up front and expect to sell the site for at least 10-12x the monthly revenue. I start to consider selling when the revenue hits $1 per day consistently, but I usually wait until it’s somewhere in the $3-5 range, which should sell for at least $1000-$1500.
I understand that in your first sale you made a big mistake. Can you tell me about this?
I put a “Buy It Now” price on the listing and it sold for about 10x the monthly revenue, and literally sold within 30 seconds of being listed. After selling several other similar sites, I realize the Buy It Now price was way undervalued and I left several thousand dollars on the table as a result.
What are your future plans, either in internet marketing or otherwise?
I’m planning to release an update to version 2 of Maximum Site Flipping in the next few weeks, as well as a number of other products in the internet marketing niche.