A year ago, I tried my hand at investing in websites through Flippa.com. I made six purchases in the year which are detailed below.
|Website Type||Price Paid||Earnings In A Year|
Total Cost of Websites: $1854
Total Earnings of Websites In One Year: $347.63
Years Until I Recoup My Initial Investment After Hosting/Domain Costs: 6.4 years
What I learned During This Process
I made a lot of mistakes in my initial purchases on Flippa, the most painful of which was simply paying too much for sites with low earnings. The news website and jokes website both reported low earnings, but for some reason, I wanted them and thought that I could make them work. I significantly overpaid on these two properties in particular and it hurt my bottom line.
I also made the mistake of purchasing two sites that I was unable to use properly–the drop shipping site and the Amazon affiliate site. I did very little with either of those websites during the entire year that I have owned them and count them as a total loss. I didn’t know anything about drop shipping advertisements, and while I did run a very short ad campaign on Facebook for the drop shipping site, it produced zero sales. The Amazon affiliate site was also problematic in that it ended up getting malicious coding that I didn’t know how to deal with, so I simply deleted the site.
My best performer was the game website which saw an increase of earnings when I took it over, moving from about $14 per month at the time of acquisition to $20 per month while I owned it. I did move the ads around a little, so this might have been what caused the growth, but to be perfectly honest, I can’t be sure. It might have just been luck, but fortunately, I made that purchase because it will carry all of my underperforming properties in terms of making my money back (without selling the sites) in the long run.
The Real Dogs
The news website is a real dog as far as earnings go. $6.43 isn’t even enough to cover hosting. I have decided to let this site whither on the vine and chock it up to experience. I don’t want to try and resell it because, in my mind, the site has no value, and I don’t want someone else to get stuck with it. I will simply eat the loss and learn from it.
Investing In Websites In The Future
I still want to invest in more websites, and hopefully, most of the trial and error has been eliminated with my first six purchases. I have a better understanding of how to value sites, how to examine their traffic and content, and what I should pay based on current earnings. The bad news is, even though I have been searching, I haven’t been able to find any sites that meet my new parameters in the last few months. Still, making no purchases is better than making purchases that I end up regretting, so the lack of reasonable targets means I am getting better at this–I THINK, anyway.