How to Buy and Sell Websites for Profit : The Warren Buffett Way

Many people Buy and then Sell Websites, commonly known as Flipping – for a Profit.

Invest in Websites like Warren Buffett

Buying Low and then Selling High.

Why not follow the greatest investor in the world and emulate what he does?

This method is great for quick profits and much like the physical world of Real Estate “flipping”, is a tried and tested Strategy to make money.

There is also what we like to call the Warren Buffett Method of Buying and Selling Websites, that simulates the same strategies Warren uses to purchase majority share in large companies.  l

Warren never creates businesses himself. He always buys into a sound and stable business that generates consistent profits and the business will increase in value over time.

There are some key take aways from what the “Miracle of Omaha” does that savvy Online investors can also replicate.

 

1. Look for value.

Like Warren Buffet always said, ” Looks for great companies or brands that are having a temporary setback or that are just undervalued”.

Look for Websites or Businesses where you can make changes that will increase the revenue that you generate. This might be adding better content, or changing around Ad placements, or moving around the email op-tin. There are plenty of things you can do to a website to improve its chances of making more money. The key is to be able to recognise this and be able to see Value.

So applying this method we would look for under valued Websites.

2. Invest in Strong Management

Warren is renowned for investing in companies that have stable, high quality management of the company. Although Websites usually don’t come with a board of managers (thank god), the same principles applies to the team of outsourcers you build in order to maintain and run the website.

Although most of the work can always be done by you, it is more wise to use the profits to invest in building a team that can run it for you. You will then free up time to look for the next investment and continue to scale up.

So work to build a team around you, that is quality and also stable.

3. Start Small

According to Warren Buffet it is mathematically a lot harder to grow a large company than a small one. In other words, you can find much more value in small companies. Now I realise he is talking about the top of the chain corporation, but the same principle can be applied if you have a certain amount of money to invest in a small Web property or Online Business.

Rather than using all of that money for one, you would split it into two investments.

I wouldn’t buy them at the same time, rather find one, make sure you have transferred everything and got your systems and team in place, then replicate this on the 2nd Website.

If you can do this successfully, not only will you have two Websites that are generating money, which are most likely worth alot more combined that one… but you always reduce your risk slightly if anything were to happen to one.

4. Buy and Hold

Warren also doesn’t believe in a Exit strategy. So when he buys, he buys and holds. As the internet is an ever changing place, I would suggest looking for an exit strategy in 5 years for example, but in that time, try and build a strong portfolio within One Market or Niche. The benefit of this is that you are able to eventually package your portfolio up and sell it for a huge sum. This is because each website should compliment each other and feed of each other.

Robert Kiyosaki says that everyone should be focused on purchasing Assets. Which are things that put money in your pocket each and every month. So building a portfolio of websites can be a very lucrative investment opportunity.

 

CLICK HERE to get Access to our Free Ebook which goes over these strategies in more detail.

 

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