Understanding the Problem of Flipping Websites with Healthy Traffic but No Profits
From time to time, you're bound to come across websites that are being sold that claim to have tons of traffic, but no profits to speak of. While these websites may definitely be bargains, they do come with an underlying problem as well and that is the simple fact that there is not even the slightest assurance that you're actually going to be able to make a profit from them!
Take this situation as an example: Let's just say you see a website for sale that is averaging about a thousand visitors on a daily basis. Needless to say, that is an incredible amount of traffic. Unfortunately, it is completely unmonetized and therefore is not making a single dime. So the question that you're going to have to ask yourself is whether or not you'll be able to add monetization and turn it into a profit-making website!
Chances are, you probably could. Even assuming that you're able to monetize your website and have a 1% conversion rate, that means that you're going to be making 10 sales a day. If you make a $20 profit per sale that means that you're making $200 a day, which translates into about $6,000 a month! Certainly, that is pretty good by any standards - but what makes you think you'd make any sales in the first place?
Non-monetized websites, despite their heavy traffic, may not be conducive to monetization. For example, if your website is acquiring traffic primarily because it is offering free stuff, then monetization techniques might very well fall flat on their face since the majority of the people who frequent your website are really only going to be interested in free stuff. Similarly, there are a thousand or so other reasons why monetization sometimes fails!
In short, you may find that you're really not able to turn the website into a profitable website, and that will mean that flipping it proves to be difficult.
All things said and done, the only way to mitigate this problem is to thoroughly evaluate the website, the sources that the traffic comes from, and then come to an informed decision as to whether or not you feel you'll be able to monetize it. If you can - great! If not, then it is probably best to look elsewhere instead of wasting your time.
Experienced website flippers often find other uses for these websites, as they would make excellent websites to help build lists, and establish a presence for yourself online. Whatever the case, if you're able to play your cards right you may very well find that despite the lack of monetization, you're able to find a use for such a website - and flip it accordingly!
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