First time I decided to buy a website, it didn’t go well. I was scammed and I lost $2,000. Thinking about it, this may have been the only bad thing that ever happened regarding website investing. It took me a few years to bounce back, and try again, but once I did, there was no turning back.
In case you haven’t figured it out yet, you can actually build or buy websites that are generating cash flow. These websites are revenue-making cash cows. Golden egg-laying geese. And guess what, they are for sale.
If you are outside of the chosen few, when you think about a website, you are probably thinking about Facebook, Gmail, Google, Amazon. You could also think about a small website that is owned by that small brick and mortar business where you occasionally buy food for your pet. But it’s a brave new world out there. Not so new anymore, but still a lot of land-grabbing opportunities. How do I know? Well, just a few years ago, people were asking for 12X multiples when they were selling their websites, now it goes up to 40X. This is 40X monthly profits.
Why buy a website?
Obviously, when I say “website investing” I don’t mean “invest in your company’s website”. I mean “buy a website”. A small website that’s making just $500 per month, is like a small business. And you can invest by purchasing it. It is an asset. This, on the other hand, is a pretty broad topic (how can a website make money), but I wanted to mention it.
Profits are better than wages.
— Jim Rohn
If you are still working for someone else, it probably means you have to show up at a certain location, at a certain time. If you own a few websites that are generating some income, that’s not the case. Essentially, you are your own boss, you get to chose your hours, and it’s like owning a small website portfolio, a small company. Better yet, you can keep your old job, and make something on the side. (As long as you keep things legal).
How websites are generating revenue, by themselves?
There are plenty of options so, let’s name a few:
- Content websites (with various ads)
- Content websites (with affiliate links)
- Google AdSense and similar ad platforms
- Amazon associate and similar affiliate platforms
- Direct affiliate commissions
- Selling various digital products
- Selling various physical products
- Sponsored articles, banners, backlinks
Main traffic source (free and paid):
- Search engine
- Social media
- Email list
As I mentioned earlier, I can write a lot about this topic, but it was important to at least just mention this so that you get a better understanding.
Have in mind, this is barely scratching the surface because a combination of each item on the list is possible. You could have a website that is selling man beard products, with the main source of traffic from a search engine, and another website that is selling the same type of products, with a different source of traffic like social media and email marketing. And yes, you can have a combination of those on a single website.
On the other hand, you could sell software, or a plugin, or a widget or an app you developed, or you could just drive traffic to your website, and resell software someone else spent millions of dollars to build. Moto here is, if you can’t beat them, join them.
Build or buy?
Sooner or later, everyone faces this dilemma. Why spend $10,000 on buying a website, and risking that money, when I can build a website from scratch. I’ve tried both, and I can say I am now in the second tent. I will take buying a website any time over building a new one. So you could say I am biased, but you can (and should) treat this post as one man’s opinion.
- Some people are good at building, and some are good at investing. Some people like to build, some people like to invest. Some people read books about building, coding and designing, some people read books about financing and investing.
- Building a website takes a lot of time and effort before you start getting any ROI. If you buy a website, you start getting returns the very next day.
- If your hourly rate is $100, it doesn’t make sense to invest 100 hours into setting up a brand new website and writing initial content. And if your idea is to “just outsource everything”, you better keep track of all the expenses, so that “building from scratch” doesn’t become more expensive than “buying a website”.
- I will say this, there is a time, where I would pick building a new website from scratch. Sometimes, you want to get into a certain niche, and you have a limited budget, but you can’t find a website that’s for sale. Months go by, and no one is selling. Then it could be a good idea to just build a website, and get into that hot niche you are craving.
- Naturally, if you don’t have any money to invest, then you have to build a website from scratch. That’s where you should start. Besides, it will be a great learning experience later when you are managing your websites.
Is it too hard to own and manage several websites?
Depending on the size of your venture, and a number of websites, it could become difficult at some point to manage all your websites. For me, it’s a bit easier, because I use a special tool that helps me keep track of everything. That way, I can just log in twice per day (once in the morning and once in the evening) and check how the websites are doing. I absolutely love the process.
There’s a ton of things you have to keep track of:
- Is the website up and running?
- When are my domain names going to expire?
- When are my SSL certificates going to expire?
- Is my email blacklisted?
- Is the traffic coming to the website at the rate I am expecting?
- Is the website loading under 3 seconds?
- Is my AdSense income as I am expecting?
- Does the website look like it’s supposed to?
- Is there a WP error like Error Establishing a Database Connection?
- Was there a surge in backlinks?
For me personally, this is second nature because I ran a small web hosting business. But I can see how this could become stressful for someone managing even a small website portfolio. That’s why we built Webmaster.Ninja. To help website investors manage and track their portfolio.
Where can I buy websites?
I wrote an extensive article on where you can find online businesses and websites that are for sale. If you are serious about looking into websites that generate revenue and that you can buy, I definitely recommend reading that. I guarantee you will find at least one good opportunity on any given day. It is a growing industry, and each day more and more websites are for sale. Not only that but old marketplaces are being upgraded, and new ones are showing up.
I don’t have a course where I walk you through the process, find great deals and help you to protect yourself from scammers. Right now I am trying to post as many articles as possible, and I am working with my team to improve Webmaster.ninja tool that helps you manage your website portfolio. If you have any specific questions regarding website investing, I am more than happy to answer them.