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profit on your investment

 Hands up everybody that would love to have got in on real estate back when buying and selling homes was a new exciting opportunity? There was so much money to be made because the market hadn't matured and reached equilibrium. Well buying and selling websites is in its infancy as well and there is so much easy money to be made.
One way to make money in real estate is to buy a property and refurbish it and then sell it for a profit. That is a perfect way to make money with websites as well. There are so many places you can buy websites relatively cheaply and have instant cash flow. You can then refurbish the sites, improve their sales system or do some search engine optimization and all of a sudden the sites revenues have doubled and you've exponentially increased the value of your purchase!
There are so many bargain websites out there. In many cases you can buy websites for just 1x their yearly profits. That means you would recoup your investment in just one year if you did nothing to the site! But what if you could quickly improve cash flow so that your investment pays off in way less than a year?
That is perfectly achievable. Lets go back to the real estate example. Say you buy a house and you rent it out. There's a set amount that you can have coming back to you. What if you wanted to increase cash flow? Well you could try doubling the rent but you'd probably have very unhappy or non-existent tenants! What if you wanted to double the profit from your website? No problem, just improve the sales or advertising system and/or increase marketing efforts. You see the website you buy has potentially limitless returns, whereas a property can only earn you so much in rent.
By leveraging market inefficiencies you can even make money by just buying from certain places and selling the site through a more effective method. Here's a tip: Never sell your site on places like eBay or Sitepoint. These are great places to buy cheap websites, but you will never get the best price for your site selling there. Just by buying from somewhere like eBay and then selling privately you could immediately turn a profit on your investment.

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