The most common strategy of website flipping is Fix and Flip. This involves buying a website which needs simple improvements then selling it for a nice profit. Like any other website purchase, the key is to buy it at a price which is much lower than market value then sell it for a profit.

To make this strategy effective, you need to know exactly what it will take to get the website in “sale-able” condition. For example, you see an underperforming website which lacks obvious elements all websites should possess such as meta tags, site map, backlinks, etc

In other words, basic Search Engine Optimization (SEO) programming which could be easily improved. Another situation would be a website that has quality content but the presentation is poor. Both examples would be a good situation where you could take a website needing some tender loving care, fixing up the site then selling it for a profit.

A buyer can quickly identify these deficit features and within a few days incorporate them and then post the website back up for sale. This Fix and Flip strategy is a tried-and-true method and works very well. You can easily make a decent profit on one deal, depending on your market, how good you are at finding bargains and the quality of your sales presentation.

The possible challenge with fix and flips is either paying too much or underestimating repairs. Be realistic in your improvement costs and length of time it may take to resell. This is where being a seasoned webmaster/internet  developer can be to your advantage because it doesn’t take much to sort out the bargains that are available. And if you don’t desire to fix up a site, you could just hire a freelancer. You will need to incorporate their costs into your expected profit margin but they tend to be very cost effective.

When I had a chance to buy a friend’s website (HalloweenAlliance.com), I knew that it had potential. Although I had been hired as the webmaster for the previous few years, I knew the owner was not taking advantage of the many opportunities to make the site profitable.

She had tons of other websites linked to her but found it “not worthwhile” to her to hire someone on a continual basis. When she decided to sell, I bought the site (with no money down) for $2,500. I spent about 12 hours fixing the site and, in the end, I flipped the site for nearly $10,000. This of course, was after the site netted me about $10,000 within 18 months so as you can tell, the “investment” or time to flip the website was obviously worthwhile.

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• Flipping Websites and the New York Times
• Website Flip Strategy - Buy and Offer a Lease Option
• If You're Looking to Buy, Sell or Flip Websites, then Welcome!
• Want to Sell Your Website? 10 Tips Before Putting it Up For Sale
• Evaluating a Website Seller