As you know, the Internet is the virtual world. And all the websites are its real estate. Just like the real estate business, some people look for buying and selling websites to earn profit. It’s as beneficial as investing in a real estate business.
Opting for online businesses for sale is a great way to get an overall profit while sitting in front of your computer. However, just like the real estate business, buying and selling websites also involves risks and a lump sum of money to invest. And it also requires you to have specific skills and knowledge to identify a website that has the potential to deliver your desired profit.
This article will vent in everything you need to know about buying and selling websites for incurring profit. So, let’s take a look at it.
Buy and sell website: Things you need to know before starting
Before every investment, there are a few certain things that you need to be aware of before you start working on it. That includes the amount of money and time you are going to put into the investment.
As mentioned earlier, like any other investment, opting for online businesses to sell comes with a certain amount of risks. Since it is not evident that you will be able to earn a profit by buying and selling websites, that is why you need to be of utmost confidence about the amount of money you will afford to invest as well as risk losing it.
In addition to this, you also need to make sure whether you are willing to invest the time the website is going to require. In case you want a quick profit then opting for this buy and sell website is not for you as it requires plenty of time to be put into it.
On the contrary, if you are willing to spend time on your project, then this can turn out to be incredibly profitable for you.
With that saying, let’s take a look at the initial investment you have to make, to purchase online businesses for sale. As you already know, the higher the quality of a product is, the more expensive its price will be. Likewise, a good website might cost you around $500 to $1000. However, the minimum starting range of a website is around $50 to $100.
Now, let’s take a look at the steps to purchase a website.
Look For An Appropriate Niche
When buying websites, many people go with the trend. It is profitable to be flowing along with the waves. However, what about 1 or 2 years later? When the trend becomes outdated! There won’t be any value to your investments anymore.
That is why you need to choose a niche that has demand all the time. It should not be impacted by trends and will always be popular among the mass. Here are a few examples of such niches that you might want to purchase:
- Healthcare
- Hobbies
- Fashion
- Skincare and Beauty
- Sports
- Entertainment
- Foods and recipe
- Money and finance
Finding Websites to Purchase
Finding a website to purchase is not as simple as walking into a marketplace and choosing the website that appeals to you most, and you opt to buy it. Instead, there are alternative ways to purchase a website.
Website Marketplace
In the website marketplace, you will be provided with a wide assortment of websites to choose from. You may choose the most desirable one and opt to purchase it.
Website Brokers
Like any broker, a website Broker must connect you with the owner of the website that you want to purchase. Once the purchase is completed, the Broker will take a certain percentage of profit for his job.
Direct From the Owner
You may also contact the owner of the website to make the purchase. It is a difficult option as not every owner is inclined to sell their online business. Sometimes, you might also have to spend more money in order to buy the website.
Value the Website
Before making a purchase, the first thing you need to do is to value the website. So, you won’t be paying more than the required amount.
While valuing a website, make sure to consider these things,
- How much revenue does the website generate
- Is the revenue consistent or seasonal?
- Are the revenues passive, like ad space, or does it require more maintenance?
- The amount of maintenance the website requires
- Can the website be improved?
It would be best if you also talked with the seller to get a better insight into the website as it may cause some problems in the future. So, it’s better to be well aware of such inconveniences before purchasing a website. Here are the things that you should clear with the seller before offering any money.
- Why is the seller selling the website? Make sure it has not received any google penalty, or the number of traffic has been decreasing.
- Find out about the revenue traffic on your own by using google analytics or any other relevant tools.
- If you are purchasing the website through a marketplace, check the customer’s review on the website to make sure whether the seller is trustworthy or not.
- Check the backlink profile.
Make Offer
Once you have completed all the checking and other inquiries, the time is to make an estimated offer. In case the seller has a predetermined price tag, then you can consistently offer 70% to 80% of the price.
Improvise the Website
After you make the purchase, the first thing you need to do is to improvise the website. After all, in order to gain a profit, you do have to make specific improvements to the website.
Use digital marketing tactics to improvise the traffic to your website. You may also improve the user experience to enhance the website performance before you decide to sell it.
Sell The Website
The process of selling the website is the same as when you were buying a website. However, here are a few quick guidelines that will help you have a better understanding of the whole process.
Valuation
The first thing you need to do about the website you are selling is to estimate a price tag, which will include all the costs of improvement and upgrades you have put into the website.
In addition to these, here are a few things that will help you have reasonable estimates of the amount for what you agree to sell on the website.
- The amount of traffic the website is getting
- The monthly revenue that the website generates
- The quality of the backlink profile
- The number of revenue streams and their reliability
- How much maintenance does the website require
Finding a buyer
Once you have a precise estimate of your website value, you can start finding a buyer. You can put out your website on the website marketplace or hire a broker to sell your website.
Transfer of the Website
Once you get the best deal, you are good to hand out all the website assets to the new buyer. If you are opting for a broker, then all the process of transferring the website will be handled by them. However, if you are doing it on your own, you will have to contact the domain provider, website builder, and hosting server to transfer everything properly.
Buying, improvising, and selling websites can bring you an attractive profit. And the whole process is a lot easier if you follow all the instructions mentioned above.