Some of the richest people of the 20th century built their empires on the back of smart real estate investments. In the internet age, however, there’s a whole generation of millionaires who’ve turned around their lives and created enormous wealth by investing in digital real estate. Like houses, offices, and shops in the real world, digital real estate has a monetary value which is determined by its positioning, popularity, age, income, and several other factors.
This value can increase or decrease over time depending on the condition of your digital assets and how much money they’re making.
Websites are the most popular digital assets with many methods to create huge profits including.
For example, one investor acquired an online business for $7,500, worked on it for a year and sold it for $550,000.
Can you imagine getting such a high ROI so quickly in any other business? This is why flipping websites, and other forms of digital assets, is one of the fastest and most lucrative ways to grow your wealth.
Why Buy A Website?
The biggest reason why someone would buy a website is because of the potential profit that can be made. There are a lot of success stories out there of people who bought a website at a lower price and eventually sold it for a lot more money.
Think of it like buying a cheap stock and then cashing out after the share price increases. Like the stock market, there is plenty of money to be made if you choose the right website.
There are dozens of examples of high profile website acquisitions that turned common people into multi-millionaires
For example, Viral Nova, a viral news blog run by just one person, was acquired for $100 million in 2015.
The Wire Cutter, a product review site, was acquired by The New York Times for $30 million.
Domain names (website URLs) become more valuable as they age which is why they’re considered a popular digital asset that people frequently invest in.
For example, CarInsurance.com, bought for $49.7 million, is the most expensive publicly sold domain name ever. Business.com was sold for $7.5 million.
The original owner bought them for a fraction of that price but held on long enough to profit.
THE BUSINESS OF BUYING AND SELLING WEBSITES
As you’ve already seen in the examples we’ve shared, investing in websites is a multi-million dollar business that offers much faster and bigger returns than most other investment models.
Buying and selling websites is very similar to the conventional real estate investment model.
Here’s how it works:
You buy a website that’s not fully utilizing its potential and can be made more profitable.
You invest money in improving the various aspects of the site like design, content, branding, SEO, etc.
The website grows in value with time as a result of the improvements you make
You sell the site for a much higher price tag (usually 2x-3x its annual income).
Depending on your goals, and the state of the website you acquire, the whole process of investing in a website, growing it, and selling it for a profit can take anywhere between 3 months to a year.
That’s it. There’s a LOT more to this business than what we’ve just shared but this is the crux of the whole model.
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