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Site Flipping - All Main Questions Answered! [FAQ]

Discussion in 'Site Flipping' started by bryanon, Sep 5, 2012.

  1. bryanon

    bryanon Executive VIP Premium Member

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    Hey all,

    I'm browsing the BHW Site Flipping section daily and I'm typically very willing to help out everybody who has questions in this area. But one thing that continues to put me off is the fact that the same questions get asked over and over again, so I'm putting together a quick FAQ answering the main questions that the new ones over here seem to struggle with.

    Here goes:

    1. How much is my site worth?


    This is by far the most common question (probably 1 thread in 3 is a valuation request), so here are some pointers:

    a) If your site isn't making any money then it's probably worth less than $50.

    b) Try to have a quick look around Flippa and other marketplaces and see what sites similar to yours are selling for. Don't expect others to do the research for you.

    c) There is a sticky thread specifically for valuation requests so there's no point in opening a new thread with yours. In fact, both meathead1234 and I typically don't respond in separate valuation threads but do keep an eye on the sticky thread so if you want our opinion, your best bet is to post there.

    Valuations thread: What is my site worth? Official thread!


    2. I'm new to site flipping. Where should I start?


    The first thing to understand is that selling websites isn't a business model on its own. In order to sell/flip something you must first have something of value. To get this, you have two options:

    a) Build it. You will find tons of advice on building profitable websites (which is what you need if you want to sell them) in other parts of this forum.

    b) Buy it. Advice on this you can find from the Site Flipping section. There are already a lot of threads about where to find bargains but the most common answer is that you should first familiarise yourself with how the market works and what to look for, and then you'll be able to spot these bargains at almost any marketplace.


    3. How quickly should I flip my site?

    Many people who are new in this game want to build their website and then sell it as quickly as possible.

    My advice is the exact opposite. Even if your site has taken of very nicely, you will NEVER get a decent multiple for a site that has only a few months of history behind it. As a rule of thumb, you should have at least 4-5 months of stable revenue history before you go ahead and sell the site, but personally I suggest you to hold on to the site until you have closer to a year of history before you consider selling.

    I realise that the option to cash out quickly is appealing to many, but at the end of the day you will be the loser in this deal as when selling a 2 months old site you're likely to only get 4-5 months worth of earnings for it, whereas a year-old site can easily go for 12x or more.


    4. I have a [insert anything here] problem with my Flippa auction

    I'm seeing these threads more and more often, and in most cases there are no sensible replies. That's because BHW is not Flippa Customer Support - and most of these issues can be sorted only by Flippa.
    If you have an issue with Flippa then your best bet is to email them directly. They are not around on weekends and work Australian hours but they usually get back to you within 1 workday so they're pretty efficient.



    5. Flippa is expensive. Where else can I list?

    With Flippa's frequent price increases, this has been coming an increasing issue to many, especially those selling lower-end sites.

    There are several threads listing different places to sell sites at, but the main ones are:
    - Webmaster forums, such as DP, WF, etc. (good for lower end sites) and domain forums (good for domain listings)
    - Brokers (for mid- to high-end sites)
    - Other smaller marketplaces, such as Dealasite.com, Experienced-People, webmastersmarketplace.com, etc.
    - Domain marketplaces like Sedo, Afternic, etc. (only for domains)

    One thing you need to bear in mind, though, is that even though the above list may seem pretty sizeable, none of these other marketplaces (with the exception of brokers - but brokers only take on mid- to high-end sites) can provide even close to the amount of buying traffic that Flippa can - not even when combined. The (sad) truth is that Flippa has absolute monopoly in the low-end market and it will stay like this until another serious player emerges.


    6. How do I avoid getting scammed?

    As most of you have probably heard, there's a lot of scamming and fraud happening in the buying and selling sites space and as such, here are some general tips you should follow both when buying and when selling:


    a) Always use a safe payment method that doesn't support charge backs, such as wire transfer through Escrow. If you follow the Escrow firm's (be it Escrow.com or someone else - only use reputable escrow firms though!) advice, never transfer anything before the funds are secured, etc. then you can consider yourself 99% safe.

    b) Spot the obvious red flags. When dealing with people on Flippa there is quite a bit of research you can do. Do they have negative feedback? Do they have connected accounts? Is there anything else that seems off on their account overview page? Do you get any dodgy results when you google their name and their flippa username? These are all obvious red flags but many people tend to ignore them for the sake of getting a "too good to be true" deal. In 99% of cases though, these deals ARE too good to be true and you should move on, rather than risk your hard-earned cash.

    c) Always try and have an actual conversation with the buyer/seller of the site. If you don't want to get on the phone with them then at least get them on Skype. Speaking to a person can reveal quite a bit about them and in my 4+ years in this business I've noticed that most scammers are extremely afraid of getting on the phone. In my case, the rule is quite simple - if you're not willing to get on the phone with me then I'm not buying from you. End of story. And having completed over 200 transaction I haven't been scammed once so I must be doing something right :)

    That's it! If you have any questions on the above then go ahead and ask!
    I'm hoping this thread will help weed out at least a few duplicate threads in this section.

    Cheers,
    Bryan
     
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  2. meathead1234

    meathead1234 Moderator Staff Member Moderator Premium Member

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    This is more up to date than my old "site flipping 101" so will sticky this and unsticky the other. Thanks!
     
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  3. steelballs

    steelballs BANNED BANNED

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    Thanks for the new update on an 'evergreen' service that everyone needs at some time when doing Internet business!
     
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  4. GunzZ

    GunzZ Regular Member

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    Reading advices from people like you and meathead is a pleasure. +rep
     
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  5. GreenHustler

    GreenHustler Junior Member

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    You and meathead certainly know your shit - appreciate the info my man, this looks perfect for newbies to the site flipping scene.
     
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  6. SEOnetic

    SEOnetic Senior Member

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    Great info. I was looking for some updated info on site flipping. Cant have a better timing.
     
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  7. Quamz0

    Quamz0 Newbie

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    Nice post.
     
  8. loads16017

    loads16017 Power Member

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    thanks for the info
     
  9. cnick79

    cnick79 Jr. VIP Jr. VIP

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    Nice bit of information. I like points 1 and 3. Would it be worth while to put something about trademarked domain names? People think because they have a great domain name usually containing a trademark, they think they struct gold.

    Also, How many sites could a newbie site flipper flip, if a newbie site flipper could flip sites?
     
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  10. Karlos

    Karlos Junior Member

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    I would like to add that you should find and use good tools.

    Common questions: What sells? How much does it sell for? What type of PR or traffic or revenue does your site need to be making to achieve a certain price? How to buy safely? How to avoid scammy sellers?

    To aid in your siteflipping, there are several tools - most of you would have heard of Flipfilter. But there's a suite of new tools coming out, two of which have already been released. kvmcable covered one in this thread and I've explained about another in this thread.
     
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  11. 1337rout

    1337rout Registered Member

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    This is pretty good info. Site flipping is my main goal, but I am starting with my own site first to help kick off my revenue, then I will start buying, revamping, and seeling sites. I can't wait until I am almost as big as you guys, Bryanon and Meathead1234
     
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  12. AceOfDreams

    AceOfDreams Junior Member

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    Hey Bryanon thanks for this incredible thread! I've already seen you answering some of my questions in my other threads so thank you once again! I am still new to the site flipping business and you've stated that there's tons of useful information on this forum that helps us newbies build profitable websites.

    I was just wondering if you can help me, and the rest of the beginners out there, by listing the links on this thread for future reference. I've browsed this site quite a bit and I can't seem to find much useful guides out there that will teach you how to specifically build a good site, how to write good articles, how to use Wordpress, the basics of SEO and the beginner methods, etc. This is just a few of the things that come to mind as I'm still in the learning process and I have a ton of questions to ask.

    Oh, one more thing, you may have noticed in my other threads but there seems to be very little information with regards to government tax and reporting your income (USA only?) Since I know you're experienced, if you can make another thread or a Q&A of information for this topic, that would be great! I believe this is one gray area in the Internet Marketing business that's highly left out but still extremely useful as it can impact our lives in a negative or positive aspect.
     
  13. bryanon

    bryanon Executive VIP Premium Member

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    That's a good idea! I've made a note to go through a few pages in the site flipping section and make a list of some "must read" threads. Can't promise that it will happen any time soon, though.

    There's a few good reasons for this topic not being very well covered.

    1) Taxes are very different across different jurisdictions. I have no knowledge what so ever about the US tax system, and I believe you don't have a whole lot to do with information re: taxes in the UK, Cyprus or Latvia.

    2) This is a subject that should be dealt with by a professional. I'm not going to give any tax advice on a forum, simply because I'm not qualified to do so. While I may believe to know the answer to a tax-related question, I won't give any advice as if it turns out to be bad advice it can result in a lot of trouble. You should _always_ ask these questions from a qualified accountant and never take what people say on forums at a face value as the consequences may be severe.
     
  14. AceOfDreams

    AceOfDreams Junior Member

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    Thanks for replying to my thread! I look forward to seeing this thread get updated with the must read topics that you will eventually compile.

    As for the tax subject, after reading your post It made a lot of sense so I will definitely not expect you to give advice on this particular subject. However, being that you're well experienced in this industry, may I ask that you share with everyone your common practices regarding anything government related? For taxes for example, you can share with us perhaps how you store information about your transactions and when the time comes to do your taxes, assuming you reside in the USA, how you go about that. It's not technically advice but more like common practice that's helped you avoid any legal trouble over the years. But of course, this is all left to your discretion.
     
  15. meathead1234

    meathead1234 Moderator Staff Member Moderator Premium Member

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    Neither Bryanon or myself are in the US, so what we do tax wise is very much subject to the taxation laws where we live and where our company is registered.

    Speak to an accountant and get yourself setup properly from day one. We have an assistant who does our book-keeping an accountant on retainer who does our books each month. If you're not turning over $XX,XXX a month you probably don't need all of that, hence why an accountant will be more help.
     
  16. AceOfDreams

    AceOfDreams Junior Member

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    Thanks Meathead! That pretty much answers my question =]
     
  17. ahiddenman

    ahiddenman Elite Member

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    Great post guys! Confirmed a lot of my queries :D
     
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  18. RogueAgent

    RogueAgent Newbie

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    Thanks for the info
    Can be very useful for newbies and amateurs alike
     
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  19. deant69

    deant69 Newbie

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    HEY - i THINK YOU ARE BEING FLIPPANT!
     
  20. renardbleu

    renardbleu Newbie

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    Thanks for the advices.
     
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