Everyone uses the internet in different ways to make money. Some people like to build and hold on to their sites – managing as much content as possible, from day to day. Other people like to snag a good domain name, build it up and flip it to another marketer, in as little time as possible.
What Flippa Does
There are quite a few ways to go about flipping domain names. Back in the day, the most common place to buy & sell domains, was on eBay. However, today, the market has become more specialized and people turn to dedicated services, like Flippa.
The site is setup similar to eBay, with reserve prices, auctions and ‘Buy It Now’ prices, set for any single domain being sold. Anyone can list a domain or website for sale and anyone can buy one – but remember these are binding sales, so always do your research first. Flippa, like any other market, is rife with high risk transactions. So, any investor that ended up in trouble with debt collectors, like national credit collection (because of their lack of due diligence, when buying a site) can go online to find out ways to manage their debts more efficiently.
There are three types of flips when it comes to website investing, and they are as follows:
Domain Flip – This is when you simply sell off a domain name that has grown in value. For instance, if you had purchased an iPhone related domain, before the products were launched, they would have grown in price later on.
Building to Flip – This is when you build a site up with the intention of flipping it. The largest profits are going to be found in this category.
Prebuilt Site Flip – This is when you take a site you were actively working on, and sell it off, because you’ve lost interest or would like to use the profit to start a new site.
When it comes time to selling a site, you have to think of the potential profits, in the long run. There is a careful dance going on with Flippa where, buyers try to gauge long-term profit potential and sellers try to measure that potential against what they need right now.
The goal of selling is to cash in on the time you’ve spent on a website. For example, if you were to build a website for $25 of your money, and a few hours a week of your time – then sell it for $1000 in three or four months, you just made a steady profit!
That site could have gone on to make $100 a month after that, but alternatively, you could take the $1000 in profit and build 5 new sites – outsourcing all the work. Now, you have 5 sites that can make $100 a month! You can either resell them again and grow your business or you can take that larger profit! This technique works especially well for those who are in debt & looking to provide this flipping service to someone else; they can get paid upfront or divide the profits, after the sell; if debts are far too imminent, credit repair experts can show you how to get some breathing room, in terms of getting some of your debts deleted off your credit reports, www.RemoveDebtFast.org/help/the-easy-way
On the other side, buying sites on Flippa is equally as profitable, when done right. Sites already making money are not necessarily scams. You will, however, need to do some serious research to make sure the transaction is on the up & up.
The base foundation of loyal users, customers and fans, from www.SitePoint.com , has quickly made Flippa into the massive powerhouse marketplace it is today. Since going live, Flippa has produced over $50 million in website transactions, in less than two years!
Buyers and sellers alike, both love the Flippa platform, because of the easy navigation, security and support that is offers through the site. It only takes a few minutes to list a website for sale, and has a low listing fee (which keeps sellers coming back). Buyers love the website because it offers them a sense of security when they purchase websites that are large, small or in between. And the growth of Flippa just keeps bringing in more quality website listings.
Some approach buying virtual real estate (VRE) the same way they would purchase actual real estate, and engage in ‘no money down’ deals, where everything is funded by a line of credit. It’s a great idea, when it works – but can be risky, if you don’t know what you’re doing. If this technique backfires and ruins your credit score (and kill your chances for future investing) and get you in hot water with hunter collections or some other collections agency – seek the help of credit specialists to help you improve your credit, quickly.
There are currently over 100,000 registered users on Flippa and more than 1,000 active buyers and sellers on the website, at any given moment of the day!
In 2010, Flippa experience over 150,000 bids through their site and selling nearly 20,000 websites. The estimated value of these websites were in the $21 million range.
There’s a few more notable high-level websites (and domains) that have been sold in the Flippa marketplace:
– In 2010, Retweet.com sold for a quarter of a million dollars.
– The website BlogTopSites.com sold for a little over $115k, in April of 2010.
– An old website of Mark Zuckerberg’s went for $30K, some time in October of 2010.
..Plus, there are several other websites that sold in the 6-figure range.
As of July 2011, Flippa has an Alexa ranking of 755, making it one of the most popular websites in the world!