Could websites be a new asset class for investors?

Stocks, bonds, gold, real estate, and now websites! Since 2009 when Flippa was started, buying and selling cashflow positive websites has been more and more popular! It’s a vibrant marketplace where thousands of website investors gather to do business!

In 2021, there are dozens of marketplaces where entrepreneurs and investors alike can buy and sell websites.

Mind you, these are not websites for brick and mortar businesses. These websites operate as small businesses themselves! Some of the more popular monetization methods are through advertisements, eCommerce, and SaaS. 

Overhead is minuscule compared to many industries, and most of the expenses go into marketing and sales. Which leaves plenty of revenue for healthy profits. Opening a local cafe with doubtful success could cost tens of thousands of dollars. Buying a website for $30,000 could bring you as much as $1,000 on the very first month. 

The number you are looking for in 2021 is 30X 

If you never ventured into the digital world of commerce, risks could be substantial. However, with some education, and mentoring, you could reap the benefits very quickly! 

COVID or no COVID, the number everybody in the industry is still looking for is 30X. If the website’s profits are $1,000 per month, you can get it for as little as $30,000. This is a ballpark figure, and it largely depends on many factors! Age, trend, industry, monetization method, and many others.

Vice versa, if you have a website that’s making $1,000 per month you can ask for 24X – 40X on monthly profits.

Passive cash flow?

Although considered as passive income by some, there is still a lot of work to be done in running a successful website. Once you lift your foot off the pedal, you will still generate interesting revenue, but eventually, the traffic to the website will stop, and so will the revenue. Even though, it could take years for this to happen in some cases.

Managing several websites, as many website investors do, is quite a challenge!
Here’s what a typical day at the office might look like:

  • Check if all websites are up and running
  • Renew any domain names that are about to expire
  • Check if all SSL certificates are running smoothly
  • Log in to Google Analytics to check traffic
  • Log in to Google AdSense to check revenue
  • Log in to Google Search Console to check website traffic for top keywords helps you run your website portfolio

This is where comes to the rescue! You can track as many cashflow websites as you like! Make sure that your website portfolio is running smoothly and making the revenue you are looking for!

The beauty of running a website portfolio is that:

  1. These websites are making money 24-7-365 (while you sleep)
  2. You can choose your working hours
  3. You can work from anywhere in the world, or from home
  4. You can expect a sizeable return on your investment within 30 months
  5. Websites are very liquid and you can expect 30X on monthly profits when selling

Websites vs stocks

Returns are better for websites (as you can see by the 30X explanation before), but perhaps provide less security compared to stocks. However the security that comes with stocks, only comes if it’s a blue-chip stock like AMZN, GOOG, or MSFT. Let’s face it, some no-name website making you $100 of pure profit every month can tank tomorrow and no one would hold their breath.

With that in mind, raise your hand if you would like to get $100 every single month with very little work involved. Also, if you know a stock that is giving $100 returns every month, or year (for that matter), I am interested in hearing that stock tip.

Websites vs real estate

Websites are similar to real estate in many ways. Where they differ in my opinion are returns and security. Again, returns are better for websites, and security is stronger in real estate. However, with real estate, there’s a bigger barrier to entry compared to stocks. Finding a blue-chip stock is easier than finding top real estate in a prime location that will stand the test of time. 

I suppose, for many, it is easier to manage several houses or apartments, but for the millennials, it could be that “digital real estate” is more attractive! As the younger generation is more tech-savvy and would like to travel more (which is very hard if you have real estate in a fixed location).

I personally own more than a dozen websites and have been actively buying and selling websites for the past three years. It’s a very exciting process, and so are the returns! If you are tech-savvy and are looking for an additional income stream I would recommend testing the website investing with an entry-level website. 

With just a few thousand dollars ($3,000) you could be the new owner of a website making as much as $100 per month. From there, as they say, sky is the limit.

I have been an Internet entrepreneur since 2006. Co-founded and sold a small web hosting business. I am the CEO of WhoAPI and I also own 25 small websites in various niches.
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