Flipping Paradise Personal Use Ebook

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DAY 6 Metrics of Success; Knowing When to Sell and How to Do It

Now you play a bit of a waiting game and then there is a delicate balance when it comes to selling. You want to ensure that the traffic sources are consistently delivering traffic to your site and growing daily/weekly. Some sites will grow quicker than others but showing solid traffic growth is key. Knowing when to sell is just as important as knowing how to sell. Sometimes sites can get to these levels in a week, sometimes in 8, but this is why I am constantly building new sites and always have a few sites that CAN be sold, they don't necessarily HAVE to be sold but they could definitely sell well. Your first site you'll experience some lead time between setting it up and flipping it if you want to maximize your return. While you can sell it immediately, I recommend getting a bit of traffic coming in, it will make all the difference in the world and set you apart from 90% of the other auctions. I know you'll be impatient to sell the site and make some money, but WAIT!!! You can make significantly more cash.

This is why in day 7 we go over scaling, but at this time it would be great to start getting your next few sites together and once they're ready, your first site will be ready (or close to ready) to be sold.

When it comes to the sale and deciding your next step you have 3 options. You either monetize the site, you sell the site outright or you continue to grow the site. There are pros and cons to each and only you will be able to decide what's best to maximize your profits. I've sold some sites too early and some too late. Let's go over the pros and cons of each.

1. Monetize The Site

If you choose to monetize the site you're going to know just about exactly what you'll get for the site. This can be good or bad. Sometimes sites will do well when you monetize them and return significant value per visitor which then will give you a sale price of around 8x-16x monthly revenue. This is great to know if you monetize the site and it starts making $500 a month. You could easily get $4,000 on the low end, up to $8,000 on the high end. But what if the site only earns $10 a month. You don't want to sell all your time and effort for $100. In those cases you want to keep monetization OFF the site and let someone buy the site on potential. Long Story Short: If you can make decent money on it, then monetize it, but you can expect an established return multiplier so keep that in mind. The premise of this course is selling unmonetized sites on potential so I recommend not monetizing unless you're positive the returns are going to be worth it.

In some cases this is very true. I had an interior design site with photo inspirations which I decided to monetize because after just 4 weeks it was receiving around 7,500 pageviews a day. I used Comission Junction (CJ.com) and had offers up for furniture companies. The site did excellent and started making around $150-$350 a day (very high EPC in these niches as average orders were well over $1500!)

In that case it was a solid idea to monetize and sell the site as it was proving to earn top dollar. In another case I made a cooking related site. Cooking, it turns out, is an awful niche to be in. I put adsense on the site and it would usually get under $.10 per click. It takes a lot of traffic to make anything remotely decent for $.10 a click. So I removed the monetization and sold the site on its other strong points, solid growth and large social following.

2. Sell The Site

Your next option is obviously to sell the site. When you sell the site without monetization you can expect rather volatile results. That's what this entire course is about though, making that volatility stay low, instead of radically high swings. I have been giving you the keys to providing real value to your buyers and will give you details shortly on what to include in sales pages and how to structure them. This option and the next option are the 2 you will do the most. Selling the site is a good play for quick returns on your investment so you can reinvest and build more websites and grow your business much quicker.

3. Continue To Grow the Website

Your third and final option you have for your website is not selling or monetizing, but continuing to grow the website. While you always want to show solid growth AND growth potential in your sales, sometimes it's a wise move to hold onto the site and see where it goes. For many of you, especially if this is your first site, this won't be an option as you want to see a return on your investment of time and money. If that's the case go with option 2. If you have some time and are seeing the site growing at a significant pace, I recommend holding onto it as it can fetch a much larger return in the long run. Imagine selling a site that gets 15,000 monthly page views in one month only for the new owner to keep stoking that growth and 2 months down the road get 100,000 pageviews. In essence they've more than quintupled the value of the site. Your timeframe will vary, and on your first flip it's nice to get that cash in your pocket to grow your business, however if you're seeing very rapid growth, try to wait until it plateaus before selling for maximum return on your investment.

The Sale

Since this course is focused primarily on building quality websites without monetization and flipping them, let's focus on the sale. I'm going to assume you haven't monetized the site yet it is getting steady traffic coming in and you're ready to see a return on your investment.

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