Flippa is an auction website with a slightly unique twist. It’s a website where you can buy and sell websites. As an internet marketer, it’s not too uncommon to hear stories of websites selling for thousands and even millions of dollars on Flippa. These websites can range from turnkey businesses in a box type websites, authority blogs, affiliate websites and highly popular micro niche AdSense websites.
Contrary to popular belief, your website doesn’t need to be making money for a successful sale on Flippa but if it is already making money then you have a great chance of selling it for a decent sum. In fact an AdSense site making as little as $1/day can be easily sold for as much as $600.
In this post I will take readers through an AdSense niche website case study of my own which I recently sold on Flippa for $365. I launched this site back in December and started generating revenues towards the end of January. The site made approximately $30 during the month of February and earlier this month I decided to sell it Flippa.
To analyze the return on investment from a simple website like this, let’s look at some numbers on how much I invested in this website to get the $365 sale price.
Domain registration $10
Hosting for two months $1
1 Unique Article $8
Link building for two months $6 as I use the same article submission spread across my 50 sites
VA cost 3 hours at $4 an hour = $12
That amounts to a total cost of $37 for a fully functional and ranked website making $25/month. I am not considering other ongoing expenses here as all of those spread across 50-60 sites will have a minimum impact on my profits.
The cost of listing on Flippa is $19 and Paypal fees of $15 so my total expense after the sale amounts to $71. My final sale price was $365 which gives me a net profit of $294, which is a decent 400% return on my investment!
This process can easily be scaled up to mass produce sites and sell them in bunches as soon as they start making money. Justin and Joe from AdSense Flippers have chosen this exact business model of mass producing AdSense sites and selling them in a large groups of 10-15 sites.
I discussed the benefits of building authority blogs in my earlier poster about the latest panda update from Google. If you do have a large money making blog or authority site, you can expect to generate some pretty hefty returns for a site regularly making anything over $1k/month. Cary Bergenon from AdSense Guild is well know for selling big, authority sites for as much as $80K in public auctions on Flippa just like this one:
and also this one:
Now that we have come context on selling websites on Flippa, let’s explore some of the key ingredients of a successful auction listing on Flippa and what you need to be providing in your listing to get the best sale price.
1. Only sell your site when its making money and has reached it potential
In the case of my “how to kill rats” site, I decided to sell it when it was making around a $1/day and as was ranking at #2 for my targeted seed keyword. Given the fact that search volume was relatively low (just over 1500 exact/per month), I had realized that for a micro niche site it wasn’t going to make significantly more money so it was time to cash in.
If you have a larger site, make sure that you only look to sell when its at least making $100/month to get maximum return on your investment as anything less and you may even struggle to break even.
2. Write a clear, accurate and concise description
Be very transparent with your description and make sure that you provide as much accurate information about the site as possible. This may include things like:
- exact monetization method
- accurate traffic statistics
- accurate income statistics
- your reasons for selling it
- your payment policies
- exact details of what the buyers should expect post sales (ownership transfer process)
3. Provide Proof Of Traffic With Analytics
Flippa allows you to upload your web analytics data straight from your analytics account, it is important that you do so with at least 2 months of traffic data. Your potential bidders will check this and is likely to give them more confidence to bid on your listing.
4. Provide Proof Of Income
If you are claiming income from your site, make sure that you provide real documentary proof of this income through screenshots and reports.
If you are selling an AdSense site, this may include a screenshot of your AdSense performance report for the site. (make sure to mask out your RPM and CTR data as revealing those is a violation of Google’s terms of service)
5. Set a reasonable reserve price and duration
Reserve price is the absolute minimum you are willing to sell your site for and can be set before your listing goes live. The auction price remains red with a “reserve price not met” message until the listing reaches the reserve price.
Once the auction button turns green you will be bound to sell the website to the highest bidder. However, the green auction button is also likely generate more interest and bids in your listings from other buyers.
Flippa allows you to run auctions for upto 30 days but in most cases it may be too long especially if you are selling a small micro niche site as many bidders may loose interest if another shorter and more lucrative listing comes along. A 10 day duration should give your listing enough exposure to all potential buyers.
6. Reply to all comments and requests promptly and courteously
Occasionally potential bidders may request additional information or ask questions about your website through public comments. Make sure to reply to those comments promptly and courteously to build confidence with bidders.
7. Build credibility by adding social proof
Just like any other online store or auction site, buyers want to ensure that they are dealing with a genuine person or a company offering a reliable product and service. To judge this they may look at your trust score on Flippa. This can be boosted through adding your social profile like Facebook, Linkedin or other ways of validating your identity.
I have plans to sell at least another dozen such website from my portfolio in the coming months but once you understand the key ingredients of a successful listing the entire process can scaled up and duplicated easily.
What about you? Have you ever considered Flippa to make some quick short term profits? or do you have websites you want to sell on Flippa? Please share your thoughts below!