3 Red Flags to Avoid 🚩
Craig learned a few lessons about what not to do when you’re flipping digital assets too.
1. Avoid Seasonality
One of Craig’s “impulse buys” was a golf website that he was able to scale… for a few months. When golf season ended, however, sales dried up. If your goal is to scale an asset to sell it, look for evergreen niches that are stable throughout the year.
2. Avoid Low-Ticket Items
If you’re paying for traffic and building links to scale an ecommerce website, for example, the clicks you’re paying for will cost the same if you’re selling a $5 product or a $500 product.
If you want to maximize the value of your website as an asset, sell high-ticket items (and avoid cheap stuff) to maintain profitability and healthy margins.
3. Avoid Commercial-Only Content
One of Craig’s clients successfully scaled a website for nearly a year with sales-driven, commercial-only content. But at the end of that year, a new Google update started penalizing sites that didn’t offer informational value, and the traffic fell off a cliff.
The lesson? Balance commercial content with organic information, and consider the user’s search intent when you’re boosting that content. If someone is looking for an answer to a question, provide that answer – don’t just try to convert them.
Finally, the last lesson to remember if you’re flipping digital assets is knowing when not to flip one. If you have a website that makes money consistently and grows predictably over time, you can leverage that “slow burn” to fund other purchases and marketplace tests.