Saturday, June 9, 2007

New Business Opporunities "Web Property Market"

It’s Early Days In The Web Property Market

It might be stupid of me to reveal this since I’m creating my own competition, but the truth of the matter is that the web marketplace, in terms of online property, is full of bargains and there has never been, and never will be again, such a great time to invest online.

It’s like having a choice of hundreds of properties which, provided you don’t totally neglect or destroy them, are guaranteed to increase in value over time. The World Wide Web is a suburb with millions of people moving in each month. That’s some pretty crazy growth and people who own property in this market enjoy consistent gains as a natural run-off effect of that growth.

I know this for a fact because every site I have is organically growing without me doing much. Google continues to send more and more search traffic. Word of mouth helps to bring more people to my sites and while none of my web property are growing super quickly, they are all steady performers.

Best of all, if you know what you are doing, you can find bargains, property priced so cheap people who invest in offline assets like real-word property and real-world businesses, would be stunned when they see the figures for online property.

You can buy web property at about five times monthly revenue. That’s MONTHLY revenue. Okay, it might be harder to find bargains at that price but it’s relatively easy to find sites that sell for 10-12 times monthly revenue. That’s one year of income, so a site that makes $1,000 a month today costs you $12,000 now.

In most cases with a few tweaks and given the natural growth of the web, and provided you did some due diligence before buying your investment to make sure you don’t get a lemon, that $1,000 can be grown to $2,000 a month in a relatively short period of time. You can make back your investment cost within 4-8 months and from there you have a nice $2,000 a month profit center. Do that five times and you have a six-figure yearly income - a potentially passive income source too!

So How Do You Find Passive Income Sites?
Any site that makes money can be a passive income source even if work is required to maintain it simply by setting up a person to look after it. So if you buy a blog that makes $1,000 a month, hire a blogger to keep content fresh and look after the place at $500 a month and you have a passive $500 a month income source that will continue to grow month after month assuming your blogger is doing a good job.

Alternatively you can look for sites that are driven by user-content generation. Sites like forums, social bookmarking communities and directories can function on the back of the people that already use the site, who create content, and the existing traffic coming through from incoming links and repeat loyal visitors.

Turnkey sites, like e-commerce stores that sell a digital product, function without you, converting sales through a web system made up of sales pages and perhaps email autoresponders, delivering the products through electronic distribution. There can be customer service needs, but of course this can be outsourced too.

There are plenty of types of sites out there that can be made passive or near-passive. It really depends on what style of site you understand so feel confident optimizing, and what your budget is.

For many of you reading this, blogs are a great option because you know how they work. There are many blogs for sale, the tricky part is making sure you can keep the content coming either by writing yourself or bringing on other bloggers. Buying a blog instead of starting a new one from scratch is another way to quick-start your professional blogging career and also teaches you the process of buying a website, which can be a very beneficial experience down the line when you go to purchase more online assets.

How Can You Start Investing In Web Property?
You only two things to get started:

The money to invest - I’d aim to have at least $5,000 USD saved up, although you can pick up smaller sites for a few hundred to a couple of thousand dollars. The most expensive site I have bought so far was $12,000 and the cheapest was $2,000.
The inclination to make it work. You need to have the time to monitor marketplaces, to implement strategies, research sites, find sellers, do due diligence before buying and then optimizing your new property (”renovations”).
Having a blog that consistently makes money is the perfect leverage tool to get you into web property. It’s takes some patience and foresight to make a decision to reinvest profits rather than spend them, but you will be glad you did in the future as your portfolio increases in value.
Link:Yaro















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