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My thoughts and results from start up flipping

Discussion in 'Site Flipping' started by shadysays, May 6, 2010.

  1. shadysays

    shadysays Registered Member

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    Hi all. Ive spent the past few months doing start up flipping and I would like to give my thoughts on it. The main reason is that I think a lot of people think start up flipping is the ticket to easy riches as well as courses that teach you flipping. Its important to bear in mind that when someone writes an ebook or makes a course more often than not they will paint a rosy picture of how easy it can be so they dont put you off as they want you to like their product.

    Start up flipping can actually cost you quite a bit of money. There was a post on another forum recently that gave a method for making $150 a day flipping and made it seem super simple. They gave the impression that you will easily build a blog for $50 and sell it for $400, but as many people quite rightly pointed out there were a lot of details being left out.

    You can buy decent PLR blogs to flip on flippa but at the moment there are quite a few studiopress sites doing quite well on flippa and at any given time you can see them sell for up to $450 with articles that have been pulled by a plugin.

    Lets look at some caluculations. Domain $10, Graphics $20 (essential for a start up site to at least have a custom header) Articles $15 (PLR is fine) Listing fee $50 ( A front page listing is essential) Total $95

    You will now have to make nearly $100 just to break even. Now heres the kicker. You have to be prepared to lose that money many times over. When you list a start up you have no guarantees that it will sell at all. You will see many many sites that are unsold on flippa or that sell for less than $100.

    When you see people consistently sell start up blogs for $200 plus they have put a lot of money into testing everything about their auction and their sites and once they have it right they can sell over and over again.

    Finally there is the customer support. Buyers of start ups on flippa are extremely high maintenance and expect to be spoon fed everything.

    Conclusion. I made a profit after flipping many start ups even though a lot of my sites just broke even. Overall it was definitely not worth the amount of time put in and its definitely not worth the uncertainty.

    My advice would be to use what ever money you have build or buy established sites or if you still want to sell start up dont go in with your eyes closed thinking it will be a walk in the park
     
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  2. meathead1234

    meathead1234 Moderator Staff Member Moderator Premium Member

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    Very interesting. I would agree with most of your points. Like anything it requires some creative thinking to be profitable with startup site flips.

    Curious to know whether you were upselling anything? Hosting etc?
     
  3. shadysays

    shadysays Registered Member

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    I was upselling hosting yeh for sure as I have a resellers account but it was more profitable to push Hostgator through CJ. $100 bucks a sign up. Ive heard that you only get about $60 from Hostgator themselves so its best to do it through CJ.

    SEO is also good to upsell. Thats one advantage to selling start ups. These people are raw. Build a list while doing it and host webinars and upsell, cross sell, down sell them like crazy.

    Seriously I cant tell you how annoying those buyers were. I was getting 4 to 5 mails a day from one person asking me stuff that I fully included in a start up guide. Then I would go on skype to reslolve and he would be oh yeh I see it now.

    People were asking very basic Wordpress questions that I would answer by Googling then linking them. I dont have any problem helping anybody whether they buy from me or not but buyers wont Google first. That really wound me up.

    When I started I was selling sites for $200 - $300 then it got less and less. Book flipping was good then studio press blogs now its auto blogs you really do have to be ahead of the game and thinking outside the box.
     
    Last edited: May 6, 2010
  4. BillyRayValentine

    BillyRayValentine Regular Member

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    I agree with your points here.

    The fact is, the cost/time/effort etc to sell startups on flippa arent worth. The flippa fees just eat into any profit you could have made ($19 to list, $9 to relist, $29 for featured).

    Its best to create an established site, and make money with it, then flip.
     
  5. meathead1234

    meathead1234 Moderator Staff Member Moderator Premium Member

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    I agree. You have to automate the after sales process as much as possible. Think pre-defined email templates, installation/marketing guides (PLR is fine) and ensure you are specific in your auction about help you will provide.

    I had some guy buy a site off me earlier, he paid my via Paypal, I transferred domain and hosting, he then asked me to initiate the Escrow transaction. LMAO, some buyers make me laugh :D
     
  6. shadysays

    shadysays Registered Member

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    You may find this unbelieveable but its true. Now one thing I dont like is after sales support so as you quite rightly said automation is key whch I tried to implement.

    When a buyer bought a site they got a folder with 2 items in it. One item was a folder with the bonuses etc the other a pdf that said "read me first" Ok I have to stress this just 2 items. The read me contained all the logins and links to download the site. I swear this is true I had buyers telling me I did not give them login details or anything. At this point I was getting really pi$$ed with these buyers and my gf says to me is there anything you can do to make it easier for them if they cannot find the readme ??????? eh no
     
  7. kristasjewelry

    kristasjewelry Registered Member

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    screw flippa Ive flipped WAY more sites for free on craigslist.org and various forums for free! Doing it this was you can sell the same website to multiple ppl, just copy the wordpress database to a new domain. Id usually sell startup sites for $50 bucks, but when you have 5-10 ready buyers it adds up alot. All I do really is just sell copies of websites and they do well, never used flippa once yet. way too high in fees like ebay.