To make money flipping websites is the practice of buying a domain and then reselling it at a profit. The process is transparent and as uncomplicated as it sounds. The only difficult thing about this technique is packing value into the website so that the money you stand to earn will be enough to keep you comfortable while the person moves on to developing another site. This is not an ideal option to make money for newbies in Internet marketing though.
First of all, it takes a good deal of experience in e-commerce to be able to do the things involved in making a site attractive to the right kind of traffic. Secondly, a newbie would probably be more contented to make money from the moderate amount of traffic his website is getting than to sell it for a profit and to build another site.
There are obviously two general ways to making money by flipping websites. The first is to buy a new domain and to build up the website from scratch until it generates a very good amount of quality traffic and is earning a sizable profit for the owner. This is a process that will take some time to make money, depending on the skill of the owner. Once that site is in prime condition, it can be sold for 6 to 10 times the average value of its monthly revenue. A critical part of the entire procedure is selecting a good subject matter for the site. To do this, research has to be done on article directories to find out which topics about commerce and what products, people like to read new information about.
The second way to make money flipping websites is to purchase a moderately earning site, enhancing its traffic and income generation to a level high enough to generate a big profit and then reselling it. Research is still the key to success in this second method to make money by flipping websites. However, research will be done in two areas. The first piece of data you will need is a fast-earning niche or topic for a website. The second thing you will have to discover is a website dealing with your chosen niche that is making some profit for its owner but not perhaps big enough to make him think twice about selling it. This characteristic of the website is very important if you intend to make good profit from it.
To make money on this scheme regularly you will need to know (1) the length of time it takes you to get a website earning (2) a certain amount of income monthly, either starting from zero income or from the amount of income the site was generating at the point in time when you purchased it, as the case may be. This knowledge allows you to implement a wide enough markup so that you can make money and proceed seamlessly through the building stage of the next site you will flip. The net profit you generate from flipping websites should be equivalent to your average monthly earning at the time of sale multiplied by the number of months it will require you to make money with another site having the same earning power as the one you sold.