Disadvantages of Long Term Website Flipping
At some point or other, you're bound to hear about how YouTube, Hotmail, and other websites have been sold for millions and millions of dollars. Upon hearing that, you're bound to think about whether or not you should build up a great website that can also be sold for stunning amounts of money. While this may seem like a good idea, that means going into long term website flipping - which has its fair share of disadvantages.
On paper, long term website flipping sounds like a great idea. Sure, you will have to spend a lot of time developing your website, improving it, adding content, building up a following and so on - but if at the end of the day you can sell it for millions, that would make it all worth it, right?
While that may be true, the fact of the matter is that you're betting everything on the fact that you're going to be able to sell your website for millions, and that isn't easy. Do you really think that you have it in you to create the next YouTube or the next Hotmail? Bear in mind that both of these websites were fairly original ideas back when they first came out - do you have an idea that is just as good?
Essentially, the main disadvantage and the biggest risk involved in long term website flipping is that you'll devote tons of time to a website that is never going to be worth enough to justify the time spent on it. Imagine if you worked 8 hours a day on a website for an entire year - how much would you expect to be able to sell it off for? Quite frankly, it would at least have to be the equivalent of a years wages in order to make it worthwhile, and for that to happen your website would have to be averaging a profit of about $3,000 or more a month!
Those kinds of websites are very often not sold off at all. After all, if you had a choice to sell off a website that is making $3,000 a month consistently for $24,000 - would you do so? By the time that happens, you've probably devoted a lot of time into it, and selling it off really wouldn't be as easy a decision as you think it would be! What's more, you know that if you don't sell it off, you could probably make even more from it in the long term than a single pay off!
Are you starting to see the weaknesses of long term website flipping?
Mind you, all of this does not mean that long term flipping is not viable. It is. However, you need to be exactly aware of what you're getting into so that you don't end up making the wrong decisions and then regretting them later on.
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