The big difference, and in most cases the only difference, is that this website is operational. What does that mean?
It means that this website is getting traffic and is turning that traffic into dollars. In other words, it’s actually generating an income.
The big advantage of this of this type of Fiverr service flipping is the money. That’s right. With everything else being equal, people would rather pay more money for an online asset that already generates money. You may have designed a very good-looking online asset. Your turnkey website may look really good.
The problem is it’s anybody’s guess whether it can actually translate visitors into cash. You don’t have any of that kind of uncertainty with an operational asset. You know that this thing works. You know that if you buy this asset, you will make money.
Given enough time, this asset will produce enough money to cover the cash you spent to buy it in the first place. Given even more time, you make pure profit. That’s how this type of asset works. It’s no surprise that a lot of online investors in online properties would rather buy operational assets.
You stand to get more money building this type of asset than a turnkey asset. After all, people are willing to pay a big premium for an asset that is already generating traffic and cash. This is a big deal because if you establish a track record of building and selling money-making websites, your reputation becomes golden.
People will seek you out as the person they can buy assets from that guarantee income. Very few people can do that. If you are able to do that, then you are going to be able to charge a lot more money than turnkey site creators.
If your properties consistently make money, you can even charge a bigger premium that other people who build similar types of websites.
The big advantage here for buyers is the fact that you save your customers from the headaches of picking out a profitable niche, positioning an online entity, building a brand, building traffic, crafting the right content and converting traffic into cash. Those are big problems. You will know this firsthand if you ever try building any kind of website or platform. It’s not easy.
The big value that you bring to the table is that you solve these problems for your clients. They get an actual working business.
The big disadvantage to this business model is that you have to spend cash upfront. Again, just like the business model I’ve described in Chapter 4, this is an cash upfront model because you’re hiring people to build the asset.
Unfortunately, your spending doesn’t stop there. You probably have to buy traffic if you’re not generating it organically. You’re also going to spending a lot of time to fine-tune and tweak the website so it performs optimally as far as making money is concerned. You’re going to have to charge money for that time.
Unfortunately, this is uncertain because it’s anybody’s guess when if ever this website actually starts converting traffic into cash. Another big disadvantage is that you are very vulnerable to niche selection. You have to pick the right niche, otherwise the ROI simply isn’t going to be there.
This means time because you’re going to have to research the right niche. Market demands do fluctuate over time. A potentially fatal problem with this model is that you can’t just assume that since this type of website asset has historically sold on Flippa, that you only need to show up at Flippa, list the asset and then collect your money. It may not work out that way.
It may turn out that for whatever reason people are not buying this type of website on Flippa anymore. If that’s the case, then you might have to sell on your own. By that point, all bets are off as to whether you can unload this asset or if you’re going to have to discount it heavily just to move it.
Finally, even if you are able to find a buyer, you can still suffer headaches. How come? Well, you turn over the website to somebody and it turns out that their traffic drops like a rock. It turns out that they’re no longer able to convert the traffic into cash. This happens quite a bit.
If this happens, then your reputation goes down the toilet. You may be thinking, “Well, that’s just my online reputation.” Think again. If word gets around that you are selling assets that stop working after a while, people are going to stop buying assets from you. That’s the bottom line. Bad news.
Step by step directions
Pick successful niche sites with decent competition levels
Just go to Flippa. Figure out what sells. Make sure that you have decent competition. What do I mean by decent competition? I’m talking about competition that is not so crushing and so numerous that you really don’t have a chance. There has to be enough of this type of site selling, but the potential sources or competitors on Flippa should not be so numerous that getting into this is just not worth you time.
Reverse engineer these niche sites using Fiverr gig service providers
This is pretty straightforward and self-explanatory. See Chapter 4 on what is involved.
Use Fiverr to get content and traffic
This is what’s different between this business model and the one that I described in Chapter 4. In Chapter 4, you just use all sorts of service providers to build the asset and content. That’s it. You’re not pumping it with content, nor are you getting traffic.
In this business model, you’re going to use Fiverr to get traffic. Here is a little bit of a caveat. There are a lot of scammers on Fiverr. There are a lot of people who would not hesitate to take you money in exchange for imaginary traffic.
Do yourself a big favor. Look at the ratings of these people and be willing to pay a little bit extra for real traffic. If you play your cards right, you will be able to find service providers that would pump a real American or Western European traffic to your website, which can covert well and translate into a decent monthly income for the asset.
Keep it up for a few months and then flip the site.
Fine-tune your website
If you really want to make money with your website, sell it when it’s time. What do I mean by that? Fine-tune conversions and traffic generation and keep scaling up the income of your site until you can fetch a handsome price for your asset.
Sure, you can turn around and sell the moment your website made $100 a month, but let me tell you, people would probably not pay more than $500 to possible $1,000 for your asset. There is a multiplier effect going on here.
If your asset is making $100 a month and the multiplier for the bidders for your site ranges from 5 to 10, then expect anywhere from $500 to $1,000. Do you see how this works?
Accordingly, fine-tune your conversions and traffic generation and keep scaling them up until your monthly income from this specific asset is high enough for you to get a very decent price. It all depends on what is comfortable for you. It also depends on how quickly you need the money.