Ways To Make Money - Flipping Websites With Buy It Now

One of the way to make money is by selling (ie. flipping) websites. However, if you have ever tried selling websites through a Flippa auction, you may already be aware of the Buy It Now (BIN) choice. You may have even used it, but not strategically. On the other hand, if you are a new website flipper, you're probably not familiar with what the BIN is, so here is a quick background.

 

First of all, Flippa is at present the most popular place for individuals looking to buy or sell websites. It's the largest as well. When the seller auctions off his site, he or she can put in the BIN option at any time. If a buyer agrees with the BIN price, he or she can buy the site immediately which automatically ends the auction. It may sound simple, but what isn't that easy is using the BIN to tactically to get the best possible price for your site.

 

As an example, a seller put up a BIN price of $6,500, and a buyer immediately closes the bidding by purchasing the site with the use of the BIN. Everybody happy, right? However, the buyer told the site owner after the deal was finalized that he was willing to go as high as $10,000 for the site! Essentially, the seller lost out on around $3,500. So in this case, the seller should have exercised patience, instead of putting up the BIN price prematurely.

 

Lesson learned; but when is the perfect time really to utilize the BIN? Check out the tips below to boost your site's profitability.

 

Experienced website flippers advise that you use the BIN option when the auction is close to being over. One example is if there is a fierce bidding battle going on between two or more buyers a couple of hours away from the auction ending then you should add the BIN price.

 

 

A reminder to both pro website flippers or newcomers:: if a bid is placed within four hours before the auction closes, Flippa extends the bidding for another four hours. But some possible buyers could lose interest having to wait that long. At the same time, you as the seller are perhaps keen to get it over and done with as well.

 

So the smartest move you can make is to set the BIN option slightly over the latest buyer bids. Let's say the last bid is around $5,000, then set a $5,500 BIN. A buyer who really has his eyes set on your website will grab that price. Although the buyer may have to shell out $500 more than he was prepared to give, the important thing for him is he got the site and saved time by not having to continue with the bidding battle. Also for you the seller, you now have saved time, and possibly got a bigger profit than you expected.

 

 

Another scenario where you may want to exercise the BIN option is when the auction ends within the next 6 to 2 hours. When this happens, you don't want to wait until Flippa makes the extension. In order to ensure the sale even on a slow auction, offer a BIN to save time for both you and the buyer and just get the site sold. Before deciding on the price of the BIN, look at the latest bid.

 

For instance, there are still 8 hours left on an auction, and the latest bid has reached $3,200, it's safe to assume that the bid may get to as high as $3,500. At this point, it would be a wise decision to set a BIN of $4,000.

 

By sticking to these suggestions and exercising good business sense, the BIN option makes it easy to identify more ways to make money when flipping websites.

 

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