Last updated on April 25th, 2022 at 09:39 am
Online is nothing new, and if you want to grab more business, then online is the solution. One of the most effective and successful ways to do this is by owning a website. Nowadays, every successful business with a robust website is winning huge customer interest and huge money. Arbitrageurs are using the whole scenario to their benefit with website arbitrage. Website arbitrage or web traffic arbitration is the process of owning a website at a minimal cost. Using functional content and marketing tactics, they constantly grow the traffic and demand for a set period. And as the website reaches a peak value, they incur huge profits through website flipping.
The crux of the matter is implementing valuable promotional and web traffic services and skyrocketing the website’s value. Arbitrageurs who know the trick of trade can leverage upto 200% profit by selling an existing or new website. Website arbitrage is considered one of the easiest and most profitable business arbitrage models, which anyone can adopt to hike their income rate.
No need to worry, if you are a novice to web traffic arbitration, understand the essence of website improvisation – competitive blogging, marketing campaigns, etc. The complete website arbitrage process is easy-peasy, and you can pull advantage even if you are starting from scratch. I will guide you through the entire process of website buying to website flipping, how to build quality websites, and potential tricks to help you increase the profit percentage. So let’s get started!
Website Arbitrage: A High-Profit Generating Investment Business
With website arbitrage, you not only bag higher profit during the time of flipping, but also you make an extra income during the entire process. Let’s see why website arbitrage is a much safer investment business plan.
- Sure Shot Business – Whether you are a professional or a newbie, anyone can learn website arbitrage from scratch and generate profit by following the set steps. Focus on adding traffic through quality content, and you can relax and watch the money roll in.
- Long-Term Profit – Compared to other financial investment plans, website arbitrage, has a double benefit during the long-term flipping plan. While flipping after the long tenure can give you upto 200% of profit margin, the business earned through content arbitrage in the process of adding value to it is also remarkable. Since blogs are the primary choice of every website owning a company to reach out to the audience, you can earn additional benefit by entering a mutual relationship with some of these companies/individuals.
- Higher Revenue Income – Website arbitrage is a safe investment model where you get a higher ROI. With the least capital investment, including the content and marketing expenditures, the revenue income is very high and stable.
Website Arbitrage: How to Entire Process Works?
The main idea of website arbitrage is to buy a website and increase its value to its peaks through quality content, and then sell it at a price that offers a huge profit. To make things simpler, let’s understand this process with the help of a small example. Let’s say you buy land for $20, and you build a house on that piece of the plot. The construction material, labor charge, etc. cost you around $100. So while selling the plot, including the house, you quote a higher price than the overall expenses – house construction charges plus the original price of the land. Even if you sell the house for $220, you get a profit of 100%. Website arbitrage works in a similar process – buying at a minimal price and selling it at a profitable price.
To be more precise about, website arbitrage functions on 3 simple steps:
- Buying new websites – Thanks to the numerous websites, now, buying a website is as simple as shopping online these days. But random buying will not help if you want to spark the profit meter. Before investing, understand the current preference of companies or individuals in terms of domain selection. Top-level domains with huge demand in the market are .com, .biz, .net, .org, .info, .co.in/uk, and the list goes on. Go for a short and simple name that is most searched on the internet. You can make this possible with keyword research tools like Keyword Planner, Google Search Console, Soovle, etc.
Now that you have the keyword and domain choice search if the domain name is registered or not. If it is already taken, you can go for two or three-word combinations for which the domain purchase websites have in-built domain name generators. Follow these steps while buying a completely new website.
But if you want to purchase an existing website, check for them on Facebook groups and other selling websites. Bid for the website at a lower cost. However, keep in mind that strong domain name and valuable content leverage more profit with minimal efforts upon improving its value.
- Promoting traffic and content – Blog! Blog! Blog! The primary need for boosting the traffic to a website. If you want to stand out, apply this technique, and see how it makes your life easier. After owning a website, the nest step is to hire a content and marketing team. While the content strategies add informative blogs, SEO keywords, backlinks, etc. to attract more traffic to the website, the marketing team’s promotional campaigns will upscale the website’s popularity.
Meanwhile, you can also earn a huge profit at this stage if some other companies offer a blog project – it means you can incur additional profit by continuing blog arbitrage before flipping the website. Now, you might be wondering what blog arbitrage is.
When blog/website owners receive blog projects at a higher price, they hire a content team and fund each blog work lesser than the original price – this price difference earns them huge profit. This monetization of the blogging process is also known as content arbitrage. To shorten the story, a website arbitrageur earns twice – first, by arbitration of a blogging project, and second, by flipping the website.
- Flipping the website – Coming to the last stage of website arbitrage – flip websites once they get to a decent stage to turn the added value to your profit. For flipping websites, you first calculate its worth at that period. Practically, websites are traded for 2-3 times the profit it incurs over a year. So check the original price, investment in driving traffic (content + promotional activity), and the profit it earned in a while and flip it for the best profit.
How to Buy Websites Online for Arbitrage and Flipping in 2022?
Flippa is one of the oldest domain buying & selling platforms that offers many solutions for the arbitrageurs who want to start their business by buying a new or existing website. Flippa acknowledges the difficulty of the buyers to choose the best website as per their requirement. Here are the benefits of buying a website on Flippa.
- Buying Due Diligence from Flippa offers additional advantages – seller & traffic analysis, sales & marketing inspection, price and risk evaluation, and so on.
- Assists newbies with Flippa Finder that offers consultation
2. Empire Flippers
Smoothen the website buying process with Empire Flippers, the most trusted website selling marketplace. It is a comprehensive platform that includes listing access, URL & Google Analytics check, profit evaluation, and many more. Website buying on EMpire Flippers works on five simple steps:
- The registration process
- Searching the right business
- Getting access to listing data
- Exploring website review options
- Completing the payment process after getting the right match
3. Facebook Groups
Facebook enables website buying options via ads or on groups. Bloggers, who want to stop using their websites for certain reasons, can be found listing their website on Facebook groups. After joining such groups, if you find a post or ad about a relevant website selling, you can connect with the buyer or click on the CTA (Call to Action) and reach the publisher. After this, you can interact with them and purchase these websites over an agreed price.
How to Increase Website Income by 5X in 1-2 years?
Increasing website income to 5x can be pursued with effective content and ad hosting strategies. All you have to do is look out for content and marketing to help increase the website’s value in 1-2 years by contributing high-quality & informative blogs, using SEO optimization & backlinks, and placing ads on social media and other websites. All these methods will promote traffic to the website and also jump the revenue income. If done by complying with Google Policy, these simple steps will guarantee 5x income in 1-2 years.
How to Sell Websites Online for Arbitrage and Flipping?
It is one of the biggest marketplaces that joins buyers with sellers. If you are trying to sell your website, become a registered user and follow the simple steps to connect with the potential buyer.
- Register yourself on Flippa with a validated email account.
- Enter your details in the profile section and add your picture – this step assures buyers that you are a genuine candidate.
- Now, verify your account.
- List out your website with a proper description, website details, website features, why it should interest the buyer, etc.
- Add traffic reports and revenue figures to get buyers’ confidence.
- Quote the bidding price and make it live.
Now you wait for the potential buyers to respond to your website listing.
- Free valuation tool to evaluate the net worth of the website’s business
- Find Broker solution helps save time. It connects with potential buyers and highlights the website’s positive aspects to increase the sales rate.
- Flippa charges a success fee upon completing the website selling procedure (including the payment).
2. Empire Flippers
Enjoy frictionless website flipping business with Empire Flippers. The entire process is very simple – all you have to do is list your website. And the rest? Empire Flipper does it all for you – from reviewing the website business to promoting the business. After finding a suitable buyer, the website handover and payment process are completed at a lightning-fast speed.
- It helps you earn more than your calculated net profit (monthly revenue x 20-60+).
- The website listing reaches thousands of buyers.
- Legit buyers with complete information.
- Direct communication between buyer and seller – no scammers involved.
- Hidden URL ensures no risk of stealing of website business.
3. Facebook Groups
Selling websites on Facebook groups is backed up with constant notifications about buyers interested in your listing and trying to connect with you after checking the ad or post about your website. Selling on Facebook groups is completely personalized, where you have to do all the research and publishing. You can either host an ad about the website selling or provide details via a post with the website details and link. Although it is not a completely risk-free process, you can find buyers easily.
Website Arbitrage Tips and Best Practices: 2022
Website arbitrage and flipping is a profit magnet and is adopted by many entrepreneurs for additional income. But doing it with the right approach and strategy it will earn you guaranteed fortune in a set period. Let’s dig deeper!
- Buy a website that already has good traffic, so you don’t have to spend much time building it.
- Investigate its backlink profile – how many backlinks have been successfully achieved. It helps you understand the current position and how much more effort you have to put in.
- Increase the traffic with high-quality content (mostly blogs), adding keywords, etc.
- Invest in affiliate marketing to hike the revenue.
- It is always recommended to evaluate the profit before listing the website.
- Know when you are ready to flip it – typically, when the traffic and annual revenue has climbed to the highest.
Following these tricks and practices is sure to make your life easier in the world of arbitrage.
How Much Money Can You Make with Website Arbitrage or Website Flipping?
Continuing on the path or arbitrage business, you must keep track of your investments and calculate the profit covering all the expenses. Factoring all the possible expenditures that you engage in during the long run of increasing value to the website, let’s see how much profit you can incur by buying and selling any website.
If you are buying a website with a monthly revenue of $100 for around $2000, how to sell it to get the maximum profit percentage? For that, you have to work on increasing the traffic by blogging, backlinks, etc. so that the traffic increases to 5x – 6x. At the same time, putting up ads will scale up the revenue generation, so try to increase it to 10 times the original revenue at the time of buying the website, i.e., $1000. Continue this whole process for some time till the website’s traffic and revenue have reached its peaks, or where you feel you can’t push it to a higher level. It is the prime time to list your website on Flippa, Empire Flippers, and similar websites over a good profit value.
The main question that arises now is how to calculate the profit and quote the price during website listing. So, generally, the website selling price is bid 2-3 times the annual revenue. If you successfully scaled the annual revenue to $20,000, add the additional expenditures (content + promotions). You can now quote the total price to around &25,000 – $30,000 for 2 years and then put it up for sale. Even after running traffic and marketing to boost the website’s traffic and revenue, you end up earning a good amount of profit from the price difference (of buying and selling).
Challenges You May Face for Website Arbitrage
All-in-all, website arbitrage is worth considering. This business model elevates the revenue meter to the maximum in the long run. Practically, there is one challenge that some might face during website arbitrage practice. While trying to hike the revenue, arbitrageurs might engage in more Adsense activities, which needs to be done in a controlled manner. Relying completely on Adsense and giving less importance to affiliates will get no business out of the websites. So watch for the revenue income of the websites you are going to buy – whether it is coming from affiliates or Adsense. To maintain stable profit growth, 60% of the website’s revenue should come from affiliates, and the remaining part from Adsense – scaling up this value doesn’t include much risk. Also, website arbitrage is a long-term profit-making process, so if you are looking for some quick tricks and tactics, that is not easy to come along.
I have shared all that I researched about website arbitrage. I have applied these techniques, which will surely help you gain more profit from buying and selling websites. The process requires time, quality, and effort to reach the place where you can increase the revenue without any risk. If you have any questions regarding the website flipping business, post it in the comment section, and I will get back to you soon. Best of luck with your future website arbitrage business!
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