In this post, I’m going to show you simple steps how to buy a profitable website. One of the famous quote from Warren Buffett is “Don’t buy cheap, buy undervalued business!” I will be using this concept throughout this article. In reality, there are multi-millionaires created just by buying undervalued businesses, real estate properties (think of Robert kiyosaki) and now, I borrow these successful concepts and apply them to websites.
One of the major benefits of buying undervalued and profitable websites are that they are much cheaper as compared to brick and mortar business or real estte properties which may require huge cash upfront and bank loans. I love to take bank loans but you have to learn how to manage it otherwise the interest alone might kill you!
Before we even dived into why you should buy a profitable website, let me share a true story of how an entrepreneur able to turn $1,800 into $173,000 in just 3 years and that’s about 95 times return of profit or 9,500% ROI in only 36 months! What happen here is that Dave Hermansen spotted a website called bird-cage.com and discovered that it is under monetized because it does not help it’s audience at all, and therefore classified it as an undervalued web property.
He immediately approach the website owner and able to buy the website for $1,800. In the next 36 months, Hermansen developed into a much better and user friendly eCommerce website that help people to choose the best bird cage based on their passion and requirements, and because this website is generating a monthly income with a sound business model, it is able to fetch a price of $173k. Read the full story here.
One main reason why this website is able to attract tons of sales in such a short period of time on is because the domain name is called “bird-cage”, which is highly brandable and also happen to be a search term people type into Google to buy bird cages. Needless to say, Google ranked the website “bird-cage.com” on first page of it’s results for many of the “bird cage” related keyword phrases, by just getting some quality backlinks.
While you may not be able to achieve Hermansen’s success immediately, you can model his strategy by buying undervalued websites which are ugly and under monetized but are already ranked on Google search engine results. My favorite way of doing this is to just find some expired domains from Godaddy auctions and then select those which are already getting traffic and check for the domain value via semrush.com, which will tell you what keyword phrases this expired domain name is already ranking for and most importantly, what is the cost per click (CPC) of the keyword phrase.
This is by far the easiest and accurate way of finding gems in expired domain (undervalued web properties), and once you have chosen a valuable domain, simply buy it through the auctions and then go to www.archive.org, type in your newly purchased domain and copy all the old content to build a new website based on the domain. I have done this several times and has found many gems this way. Do share your experiences below if this has worked for you.