Determining a profitable website is not easy especially if you are looking to flip it for higher profit within a short period of time. However, with the right research and knowledge, it is possible even for a beginner to pick up a good site with great potential to start with
Step 1 is to determine if a website is worth the investment is by the income it is generating. Most websites have some type of income source such as PPC advertisement (Google AdSense etc), Pay-Per-Action programs (ClickBank etc) or selling of their own products. Basically, this step is to analyse the current profitable channels and see if you can expand or add in other sources of income. It’s never a good idea to rely only on just one source of income for a website.
Step 2 is to find out where are the traffic coming from. Most websites should have a healthy amount of constant traffic from the search engines followed by social bookmarking sites or regular visitors. If most of the traffic is coming from the search engines, you should find out what are the keywords that brought in the traffic. Search out the keywords in Google and check out the search engine rankings of the site.
You should also check with the seller what are the top search engines that directed the traffic to the site. With these information, check the on-page optimization effort of the site and you may have more ideas for improvements after you have bought it.
Step 3 is to highlight the areas of possible improvements of the site. If you can come out with at least two quick fixes to the site that can increase the value created to the visitors, the traffic to the site will increase to the next higher level eventually. For example, if you can include an online tool to calculate the financial net worth of a person in a financial blog, that would most likely benefit all your readers in a long run.
Step 4 is to check for back links to the site that you are interested in purchasing. It is highly recommended to use backlinks analyser since it displays almost all the pages that linked to the site. You may want to try Ahrefs, SEO Spyglass, Raven Tools, Open Site Explorer or Majestic SEO to do your link analysing.
With the above four steps, you should have no problems choosing a profitable website that can generate a stable income for some time. You are advised to check on the seller’s history as well to know more about the seller’s background before confirming the transaction.