Believe it or not, many entrepreneurs make money buying websites. But they don’t just buy and sell. They make improvements to increase the value and sell them for a profit. Website flipping is a growing industry that sees millions in transactions every month, but it takes an effective strategy to make it. You can liken it to real estate investing — it carries risks, so knowledge and skills to do this are needed.
Key Takeaways
Entering the website flipping game starts with two choices: Build a website from scratch or purchase an existing website that already has the preliminary setup and monetization in place. The goal is to improve the performance and revenue of the website so that it can sell at a higher price.
To increase the value of the websites, you need to implement strategies that boost website traffic and diversify their revenue streams. Once you’ve achieved this and you’re ready to sell, consider various options for selling the website: online marketplaces, brokers, or direct/word-of-mouth sales.
It’s not enough to just buy and sell the website. Certain considerations, such as the legal and financial aspects, must be carefully managed. Think about how the sale is going to impact your finances since you also have to pay taxes. The seller and the buyer also need to protect their respective interests, which can be done through contracts and agreements.
Understanding Website Valuation
Ask brokers how websites are valued, and you’ll learn that the process will involve using a standard valuation method: multiplying average monthly net profit by a valuation multiple.
For example, a site earning $5,000 per month with a 36x multiple would be worth $180,000 ($5,000 x 36). However, profit alone doesn’t determine the final value. There are other factors affecting website value, including the following:
Market trends
Niche demand
Additional assets: multiple income streams, various traffic sources, a strong domain name, and search engine rankings
Since the multiple isn’t fixed, buyers and sellers must assess these elements carefully to determine a website’s true worth in the marketplace.
Finding Websites to Buy
There are several ways to look for websites to purchase with the intention of making a profit down the road. The points below are just a few of them:
Popular marketplace platforms. Marketplaces like Flippa let individual sellers list websites, handle negotiations, and transfer assets independently. They offer low-cost sites, ideal for micro-acquisitions, ranging from starter sites to established ones generating passive income. However, buyers must conduct thorough due diligence, as most marketplaces provide minimal verification, leaving the risk entirely on the buyer.
Direct outreach strategies. If you’ve got a knack for negotiation, put it to work by directly communicating with the site owner. The best sites are often the ones not even listed for sale—no bidding wars, just smart deal-making. To help you find websites in your preferred niche, use keyword research tools like Ahrefs.
Online business brokers. Brokerages provide a more personalized experience for those buying websites to make money, making them ideal for beginners with extra funds. Unlike marketplaces, they offer curated, verified listings. Firms like Website Closers, Empire Flippers, and FE International specialize in larger deals, so they’re best suited for buyers prepared to invest in higher-value acquisitions.
Those who prefer to do things on their own might choose either of the first two points. However, you also need to remember that you’ll be performing the due diligence process on your own if you don’t have an advisory team for the deal.
Building Websites from Scratch
Building and selling websites can be highly lucrative, especially if you’ve mastered website development basics, have experience in development, and understand choosing profitable niches while applying various monetization methods. Below is a quick checklist of the basic framework of a money-making website.
Niche and keyword research. You can perform this initial research using keyword research tools like SEMrush and Ahrefs.
Determine how the website will make money. Some questions to ask yourself:
Is it a blog that will earn from affiliate marketing, Google Adsense, and sponsored content?
Will it be an ecommerce website, or are you going to sell digital content?
Is it an online learning platform?
Choose a domain name that has opportunities to expand and is highly relevant to your niche.
Pay for hosting and decide on the CMS it will run on. Some popular ones include WordPress, Wix, Squarespace, and Shopify.
Plan the layout and make sure it’s responsive.
Set up the technical side of the website, including the following:
SSL certificate
SEO crawler
Google dev tools and Google Analytics setup
Plugins + Integrations
Content plan
Disclosure pages
Data privacy compliance
Improving Website Value
What is your end goal? Ask yourself this question because it will lead you to how you will implement the improvements to push the website value further.
Are you buying a website to build it until you can sell it for a sum of money that will change your life?
Are you in the website flipping game?
Or are you looking to create a long-term income stream from your acquisition?
There’s plenty more to cover, but one of the most important factors is understanding your potential buyers. Whether you’re selling soon or years away, now is the time to get on their radar, build connections, and start networking. Afterward, it’s time to establish improvements according to your end goal. Generally, you want these bases covered:
Traffic optimization techniques. Boost your website’s traffic by getting users from multiple sources:
Search engines
Direct visits
Social media platforms
PPC ads
Partner websites
Industry-specific blogs
Industry-specific communities
Revenue optimization strategies. Solidify the monetization streams of your website. Here are some ideas:
Establish relationships to create repeat customers
Expand geographically
Pricing plan reevaluation
Add more products or services
Bundle your offerings
Create upsell opportunities
Integrate more modes of payment
Create a subscription model
Content enhancement strategies:
Improve your content strategy to make them appeal more to your audience.
Get everything on schedule, including keyword research and content writing, by organizing them into an editorial calendar.
For those who want to keep the site for the long-term and sell it down the line: Establish yourself as an expert to adhere to the Google E-A-T guidelines.
Make authentic content. Use your own experiences and share them in a way that resonates with your target market.
Technical improvements to consider:
CDN implementation improves the website’s loading time. And with a faster website, the user experience you provide will be better.
Smoothen the mobile navigation as most users access the internet on their phones.
Where to Sell Websites
You’ve put in the effort to improve the site—now it’s time to turn that investment into profit. But how do you sell the website you’ve worked so hard to establish? Here are some ideas to get started:
Popular website marketplaces. Selling a website is somewhat similar to selling real estate online. Various marketplaces allow you to list your site and receive bids from interested buyers. Platforms like Flippa, BizBuySell, and Empire Flippers are among the options available for website sales. But before you list, first, have a review of the commission structures of these platforms so you won’t be surprised about the fees. Consider alternative selling methods if they take too much commission.
Website broker. If you want to get the best price for your website, teaming up with a seasoned broker can be a game-changer. The right broker knows the market, connects you with serious buyers, and guides you through the selling process with confidence.
Direct buyer outreach. If you’re connected with people in the same industry as your website, they may already be interested in buying. Selling through word of mouth can be a straightforward process, so be sure to inform your network once you decide to sell. Even if they aren’t personally interested, they might know someone who is looking to buy.
Maximizing Sale Price
Numbers carry weight in negotiations, especially when selling a website. Buyers can only rely on statistics (the site’s figures on potential revenue, traffic consistency, and overall business performance) to gauge whether the website is a worthy investment. Simply stating that a website is profitable won’t be enough to justify a higher sale price. So, if you want to sell at the best possible price, here are some considerations:
Preparing documentation. Providing detailed financial reports, traffic analytics, and key performance metrics—perhaps even in a visually compelling format—can strengthen your position. The more concrete data you present, the easier it becomes to highlight growth potential and justify a premium valuation.
Creating attractive listings. Effective listings show the unique features and main selling points of the website. Give potential buyers ideas on the benefits they’ll enjoy after they acquire it.
Negotiation strategies. Employ strategy and flexibility when it comes to the sale of your website. Enter negotiations with:
a clear understanding of your website’s value
the buyer’s priorities, and
areas where compromise
Doing these will lead you closer to a favorable deal. Exercise firmness with your expectations, but at the same time, adapt to the buyer’s needs and requirements.
Timing your sale. Your site is bound to get higher valuations if it’s within a stable or strong market with high demand. However, don’t wait too long, as markets can decline, buyer interest might decrease, and you’ll end up accepting a lower rate.
Legal and Financial Considerations
Smoothen the transfer and keep risks to a minimum by organizing the legal and financial aspects of the website sale. We cover the key considerations in the following points:
Transfer process. In this process, you prepare a clear declaration of which assets are included in the sale. Structure the transition plan so that it becomes smooth for you and the buyer. Generally, you will include the following:
Domain
Content
Email lists
Social media accounts
Contracts and agreements. Protect the interests and document the expectations of both sides. This can be achieved through the preparation of a well-drafted sales agreement. Remember to put the following details:
Purchase price,
Payment terms
Asset transfers
Other conditions of the sale
Tax implications. Proceeds from selling a website may be taxed as ordinary income or capital gains, depending on the sale structure. Consulting a tax professional can help optimize tax treatment and avoid unexpected liabilities.
Intellectual property rights. Buyers need assurance that they have full ownership of the acquired digital assets. All copyrights, trademarks, and branding elements need to be legally transferred.
Non-Compete Clauses: Including a non-compete clause can reassure buyers by preventing the seller from launching a competing website in the same niche after the sale.
How to Buy and Sell Websites for Profit
To sell websites for money, which is simply called website flipping, involves buying a money-generating website and improving it to be sold at a higher price. At a glance, it looks simple, but there are required skills and an initial investment in every purchase to make this work.
If you’re building a website from scratch, you need web development skills and an SEO background. The former gives you the ability to build and run your online property, while the latter is needed to make the website visible to as many users as possible. Those without technical skills yet adept at negotiating and have the resources to make the investment can outsource staff to perform the technical aspects.
For those who prefer to purchase a website as their initial investment, pushing the revenue further will be their main focus.
Among the first steps in website flipping is deciding between these choices. The next phase focuses on generating traffic and increasing revenue to achieve a resale value that meets your expectations. Technical SEO and online marketing strategies will come into play here.
Remember, a well-optimized site not only attracts buyers but also influences its valuation. The multiple you can sell for depends on factors like revenue consistency, traffic quality, and operational efficiency. Once optimized, the final step is listing your website, ensuring it’s well-packaged for maximum valuation.
FAQ
Now that I’ve learned how to make money buying and selling websites, how do I look for a site with excellent growth potential?
Begin with an SEO audit of the websites you plan to buy. With this, you can uncover technical, on-page, and off-page issues that may hinder organic search performance. Digging deeper can also reveal content gaps—missed opportunities where valuable content could improve rankings and traffic. Identify and address these gaps.
How much money and effort do I initially put into website flipping?
Expect an initial investment of around $500. On average, successful flippers dedicate about 15 hours per week to their projects. When selling, most marketplaces take a commission ranging from 10% to 15%. Website valuation is primarily influenced by monthly revenue and traffic.
Is website flipping still profitable?
Website flipping, even with the rise of AI usage, is still profitable and relevant. A mix of choosing the right niche and employing the right strategies can help you make it in this game.
Which platform should I use if I decide to build from scratch?
WordPress is the most flexible platform of all options. Wix and Squarespace tend to lock their users. If buyers aren’t keen on operating on these platforms, your website will end up having a lower valuation.
Conclusion
The sky’s the limit when you want to earn as you continuously create and sell websites across various industries. There are so many niches to take on and so much earning potential the sites can generate.
Find online marketplaces that can help you land the best deal. If you see yourself staying in the website flipping game for a long time, partner with business brokers such as the WebsiteClosers.com team. With our experience in selling online properties, we can help you boost your website’s potential, connect you with qualified potential buyers, and get close to the best price possible.
