Blog Flipping: 10 Important Factors When Selling Your Weblog Or Website
By Chuck Crawford © 2009

The market for blogs has exploded. Many companies do not want
to invest the time in developing a blog in their respective
niche, which has given rise to a whole new cottage industry,
blog flipping.

Blog flipping is done in a few different ways. Some flippers
buy an existing blog that has potential, but is not currently
producing. They take that blog and build the traffic and sales
up to a level productive enough to reap a profit from their
investment, and then sell it.

Or, more common in today's blog flipping market, is to research
a specific niche, develop a domain / blog, and then sell it.

But what does "developed" really mean? It depends on the
flipper. So buyers really need to do their homework (read due
diligence) before investing in an "established" blog or website.
Because "established" is in the eyes of the beholder, and means
many different things depending upon who you consult.

In my opinion, established means that the site, or blog, is
profitable. Now profitable can be defined very differently for
different companies. It doesn't mean that the site has to be
making money, though it does help justify the investment when
purchasing the blog. It can mean to a prospective company only
that the site has traffic that company believes it can convert
into sales. Not everyone can convert website traffic in the same
way. So there are companies out there looking to buy blogs that
have a certain, specific reader demographic that fits their
market. However, these types of sales are few and far between.
Companies that are buying blogs normally want to see one thing.

Profit.

Not just income, because a blog's gross monthly income and it's
actual profit margin can be two very different things as well.
We've all seen the advertisements screaming that you can make
ten thousand dollars a month blogging, or with Adsense, or
whatever. But the part usually left out is the investment it
takes to get that income. Sometimes the cost is far greater than
the income, making the blog or website a LOSER.

So what steps should you take to sell your blog if you are a
would be website flipper? Here are a few factors your blog or
website should have in order to get top dollar:

1. Real Web Property

Your blog needs to be a real web property. What I mean by this
is that it needs to be a real domain, on hosting you are paying
for. Free hosted blogs are not a viable investment for most
companies and corporations. There are exceptions to every rule
and I'm sure that there have been a few sales of extremely
popular Blogspot blogs, but unless you have a million visitors a
month, you're probably not going to sell a free hosted blog
anytime soon. Buy a domain, pay for some hosting, build
something that has value.

2. Professional Appearance

Your blog or website needs to have a professional appearance.
Custom design is always better, but at the very least, it needs
to have a template or layout that fits that blog's readership or
market. If you have poor graphics, even if your blog has monster
traffic, you'll sell it for much less than you could have if you
had professional web design. It's sort of like house flipping or
selling a used car. If you can afford it, a fresh coat of paint
usually brings the resell value up substantially.

3. Developed Traffic Sources

Potential buyers want to see traffic. Not just any traffic will
do for most serious investors. They want to see solid, search
engine traffic and a solid bookmarked reader base. StumbleUpon
and other social bookmarking websites are awesome traffic
sources, no doubt. But when it comes to someone buying your
blog, they want to see more than just a few traffic spikes from
a front page listing on Digg. They want to see that the traffic
is going to keep coming for months and years to come. Without a
lot of work if they can get it.

4. Documented Traffic Statistics

It is going to take more than just the summary of "hits" screen
capture from your webalizer stats to make the sale. You are
going to need at least three months history of actual traffic
statistics. Unique visitors, tracking cookie info if you have
it, Google Analytics, etc. Numbers, numbers, numbers.
Corporations want numbers in order to convince their board of
directors that your blog would be a sound investment. Private
investors are no different for the most part and they want to
know exactly what they are buying when it comes down the actual
traffic your blog has.

5. Profit and Loss

Lots of income statistics. If you are looking to sell your blog
or website for real money (read more than a few bucks nabbed on
EBAY) then you are going to need to show your buyer some stats
about money. P&L statements (Profit and Loss) for as far back as
you can go will help your buyer make his or her decision. It is
one thing to tell a potential buyer what the gross income per
month is, it's a completely different thing to show them exactly
what the net income is and how it is obtained each month. Keep
good records of your website expenditures and what the income
received from those investments are. Include every cost. Website
hosting, design, redesign, employee or outsourcing costs,
whatever. Include everything and show them the real bottom line.

6. Set a Fair Price

I know you love your site, I love all of mine too. So it's easy
to attach an emotional value to your blog and inflate the price.
It's also really easy to confuse a blog's actual value with your
vision of it's potential value. What you think the site will
make someday and what it's making now are two very different
things. Sorry, but what you think it will make someday has zero
value to a would be investor. They only want to know what the
net profit is, right now. Yes, you can take some long term
income growth statistics and make profit projections, but unless
you have these statistics going back a year or more, most buyers
are going to dismiss them entirely.

Set a real price. In the bricks and mortar world most companies
sell for 2 to 3 years of the total net income. Online, this
number is usually cut down to one year. So if your website is
netting $300 per month, the actual value of your blog is
probably somewhere around $3600. Once again, it's easy to add an
emotional price tag for all the hard work you've done to get
that blog making $300 clams a month, but your sweat equity
doesn't mean much to a buyer.

Neither do website values created with online calculators.
These sites are traffic magnets and are built totally to obtain
webmaster traffic. If you search long enough and hard enough,
you'll find a website value calculator that comes up with a
number you like. It still means nothing to a buyer. It's not
what your site is really worth and should have no bearing
whatsoever on your sale price.

7. Where to Sell your Website

Where and how you sell your website is super important. The
profit you make will be directly related. Try to stay away from
auction type formats if at all possible. If your site has some
real value, use a website broker. A broker will help you
determine the real value of your blog or website and then help
you find a qualified and interested buyer. You would call a real
estate agent (read professional) if you were selling your house,
right? So why would you rely on your "for sale by owner" plan
when it comes to your web property? Call a professional.

Sadly, one of the main reasons most flippers don't call in a
pro is because deep down they don't really want to know what the
site is worth. They want to live in their imaginary world where
their holdings are worth millions. They can put a site up for
sale on Sitepoint or Ebay for whatever price they want. Creating
the illusion that they are worth substantially more than they
really are.

8. Pie in the Sky Promises (magic beans)

Stay away from "Pie in the Sky" promises to potential buyers.
When it comes to buying a website or blog, 99% of the buyers out
there are from Missouri (the "Show Me" state) and only want to
see the cold hard facts. Offering to take them to some new level
of income at a later date is only going to make you look
unprofessional and like an amateur.

There are sales contracts that require you to assist the new
buyer for a set period of time. But these are normally for sites
that are currently making money and allow time for you to teach
the new owner just how that income is made. These clauses in
sales contracts are not designed for you to hatch your half
baked plans or for time to realize "what you think" the site's
potential might be someday.

9. Accessible Communication

You need to be extremely accessible to both your broker and
potential buyers. They are going to have questions. So you need
to have a cell phone number and an office number where they can
reach you. You need to check your email often and respond
quickly. Slow response can be a red flag signaling uncertainty,
and that's something an investor just does not want to see when
they are thinking about laying some cash on you. Be available to
talk to them.

10. Know the Details

Communication is only effective if you have answers. If you
have to stumble and stutter with your answers, it's going to
have impact on the sale. You need to have done your homework and
you need to know the answers to the questions in advance.

There you have the basics for flipping your blog or website. Of
course there are many more points that can increase the actual
dollar amount realized when you sell your blog, this only covers
some of them.

But if you follow these guidelines and are realistic with
yourself and your buyer, you can sell your website for a profit.
So take the time to prepare your web property for a real sale.
Writing a good sales pitch is fine, but it's not going to be
sufficient for most investors. You're going to need to have
these bases covered.

Good luck. I hope you sell your blog for what it's worth.
================================================================
Chuck Crawford is an established expert in web design, traffic
development and website financial analysis. He has been helping
people design and develop their internet business since 1995.
Visit http://www.business blogs.us/blog/
================================================================
Copyright © 2009 Jayde Online, Inc.  All Rights Reserved.
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