Digital Real Estate
I’m sure you’ve heard this before…
How do you make $1 Million in real estate?
Start with $2 Million.
Well, it’s true… the real estate world is not something to take lightly. There are so many ways for you to lose your shirt in this business, so you want to always make sure you go into it with your eyes wide open.
Whenever a property comes up for sale, you want to be the first one in line to buy if it’s a reasonable deal. So make sure you do your due diligence.
Also, if you have a property for sale, you’ll want to always have a list of potential buyers, so that means constant prospecting.
But Before We Get Into That…
To save you some time, let me tell you right now that most of these digital real estate models are neither the fastest nor the most guaranteed path to building passive wealth at home.
So, if you’re serious about building a passive income with digital real estate…
Real Estate is definitely not a one-size-fits-all industry.
But no matter how much you may have a handle on things, you never really have total control.
Now, suppose I said that there’s one particular type of real estate business that doesn’t require constant prospecting and high-pressure sales tactics for you to make good money online, and you’re in complete control?
It’s called Digital Real Estate.
You see, in the world of digital real estate, there are tons of ways to make money online and build passive wealth without having to leave your office.
If you know your way around the digital world… enjoy writing blog content and putting your ideas online… then this could be the type of day job that can pay you back in spades.
Check Out This Simple Way To Run A Digital Real Estate Empire Online
This is so simple, it should be illegal.
Table of Contents
What Have You Heard About Digital Real Estate?
I’m guessing that when you think of property investment, digital real estate isn’t really the type of property that comes to mind… because digital real estate is the type of property investing that primarily exists online.
Specifically, I’m talking about Website Domains.
When investing in a brick and mortar property, you’re typically looking at around $100,000+ investment. But when you’re talking about investing in digital real estate, your investment is a tiny fraction of that.
This is why digital real estate is really catching on with the investing world, since you’re investing in a website… which means that your overhead is virtually nothing.
With such a small investment on the front end, digital real estate is becoming a much more viable option for investors.
After all, if you can make more money by investing less, who wouldn’t want to do that, right?
So What Are The Upsides?
Well, just about anyone is able to invest in digital real estate.
But even though one can invest in digital real estate, you likely won’t see any success without a plan.
Of course, with rental property, there is no shortage of courses available… but there aren’t very many out there about digital real estate.
Now, when you’re doing your research, you’re gonna hear stuff like:
- XML Sitemaps
- Content Creation
Don’t let any of this scare you off, because this is all just part of the digital real estate world.
And for those of you who are willing to put in the hours of work it sill take to see a profit, then it can be really rewarding. In fact, it’s not unheard of to see profit margins of 90% or more.
Well, the first thing you need to understand is how the digital real estate industry works, what types of digital property you need to focus on, and the pitfalls that you’ll need to avoid in order to skyrocket your income potential.
That’s why we wrote this article.
We want to step you through all the nuts and bolts of digital real estate so that you’ll at least understand the basics of good digital investments.
Before long, you’ll have a digital investment portfolio that will be the envy of the town.
So What Exactly Is Digital Real Estate?
There are many different types of Digital Real Estate. In fact, your property can come in many forms. Here are just a few type of digital investments:
- Websites: Authority blogs, Affiliate sites, Shopify stores
- Apps: Applications for your smart phones, notebooks, and tablets
- Domains: Website names that haven’t yet been activated
- Digital Products: Training classes, Membership courses, eBooks
In a way, digital real estate isn’t much different from traditional real estate in that you can sell your digital real estate asset for a quick decent profit after you let the value appreciate.
You can build a cash cow from both conventional real estate (passive rental income) and digital real estate (lead generation, ad revenue, affiliate commissions) properties. The more money you make, the more you increase the property value.
With digital real estate, you’re buying an asset and building value so that you sell that property later on if you choose to.
So What Does This Mean?
Well, you could build a website specifically for niche audience that brings passive income through ad revenue.
You could buy a domain name that you believe will be valuable in the future. This works really well with politicians seeking higher office. When you catch wind of this, buying a domain like “BrianJones4Governor.com” is the type of digital real estate investing that can really pay off.
When you think about it… investing in digital real estate is still relatively new since the first domain name (Symbolics.com) was purchased in March of 1985.
In fact, up until 1995, you could register a domain for free. It wasn’t until the Foundation for National Science allowed Network Solutions (a technology consulting firm) to charge $100 for a two year registration.
Nowadays, you can buy really cheap domains for a little as one ($1) dollar per month for the first year. And on top of that, building a website can cost next to nothing.
Of course, you should buy a domain name that will get a lot of attention to your website.
We’ll dig deeper into buying domains and creating websites as digital real estate investments a little later, but for now, let’s take a look at the advantages of digital real estate.
What Are The Advantages Of Digital Real Estate?
Even if you don’t see yourself as the investor type of person, there are a lot of advantages to this type of investing.
Here’s a list of reasons why investing in digital real estate is so profitable:
- Cheap To Get Started: You can buy a domain for around $10 and $5/month for hosting. Then you can either build a website or hold onto the domain until you sell it to another buyer.
- Higher Profit Margins: Your margins can be as high as 90% given the low start up costs.
- Quick Appreciation: Your asset appreciates fast. In fact, within one year you can see your website value increase by 5x.
- High Supply: You can buy as man domains and websites as you want, regardless of what country you live in.
- Passive Cash Flow: You can cash in on your website while you still own it by putting ads on your site, by being an affiliate, or linking out to another site.
- Improving your site is easy: An inexpensive website with a good domain name can be made more valuable than rehabbing a house just adding something as simple as content.
- Low Risk: Sure you can make money by investing $100,000+ on a house or an apartment building, but the risk is a lot lower when purchasing a $20 domain.
- Building for the future: The online landscape will become a massive part of our daily living, so setting yourself up for success by purchasing online real estate properties is a the best move you could make.
What Types Of Digital Real Estate Make The Most Money?
Given all the advantages that we just covered, let’s take a look into what types of digital real estate stand to make the most money.
Now, it goes without saying that, when it comes to digital real estate investments, buying domains and building websites is relatively the easiest route to go.
Each of these business models have the potential to make a good amount of money if done right. Think of these websites as a small restaurant that you’ve just purchased. Each restaurant has customers and a crew to run things. The one thing that you have to do is come in a make sure that everything keeps running like normal.
Of course, as with any business, you can make whatever change to the website that you want to make, but don’t do overboard. Just keep in mind that it’s still a business that was doing the work perfectly before you bought it. So don’t re-invent the wheel.
Also, there are a lot of websites that aren’t built out yet that has a good amount of profit potential. Think of these as “stores” that are empty but in an area with a lot of people walking by it.
Now, these domains may be hard to find, but if you do find one and partner it up with the right business, then you can see a really good ROI.
But in order to make money it’s gonna take investing in your business, which mean you’re gonna have to come up with ways to get people to come to your “store”.
So let’s take a look at what you can do…
1. Building Websites
Next to buying domains, building websites is the most basic type of digital real estate investment. If you can get lots of website traffic, then you become very attractive to other investors and venture capitalists.
There are many ways that investors want to diversify their money, and so if you have a website that gets 200,000 pairs of eyes to it every month and it’s making money, then don’t be surprised if you get people contacting you about partnering with them.
Also, large companies are always looking for ways to sell to a target audience. So, if your website focuses on a specific product or serve, then you would be very valuable to their growth.
With a little investment into a domain, website, content, and strategic linking, you could see profit margins as high as 80-90%.
You see in the digital real estate world, it’s a lot easier for large companies to buy a website that is “ready-to-go” and already turning a profit than it is for them to build a website from scratch.
So, when they come across a website that already has good content and making money, it’s a no-brainer for them to pull out their wallet.
It really doesn’t matter what type of website it is…
It could be a website about trucks and cars, baby clothes, or a home decorating blog; as long as the website is making money, or has profit potential, then it’s an appealing asset to any digital real estate investor.
Even if it’s just a matter of the content of the websites. If the topic of the website aligns with those investing in digital real estate, then it will quickly be picked up.
2. Buying Domains
Buying and flipping domains is still a relative secret in the world of digital real estate. On top of that, making money with this method has gotten a little harder since the dot.com bubble burst years ago.
Although it can be hard work finding profitable domains for investing into websites, getting involved is still pretty easy so most investors look at it as the most effective route.
Of course, these investors who buy up domains (aka “Domainers/Domain Investors”) primarily do so in order to flip them. But investing in domains like this does take some patience.
You need to understand that the domain you buy today might take a few years before anyone else would want to buy it from you. But when that time comes, you can pretty much make a nice little profit or you could make a giant one (within reason).
Let’s go through a few examples of investing in domains and one about investing in a website.
Example 1: Flipping A Domain
I once knew a guy that was by all definitions an entrepreneur who wanted to start a new business. But the domain that he believed was crucial to the success of his business was owned by another individual.
This guy shares with me that he basically just bought the domain, built a quick little one page website just to display ads on it, and waited for someone like my friend to buy it from him.
Well, he did.
To the tune of $5,000!!!
This entrepreneur spent 5 Grand on a domain that probably only cost $20 at the most. But this “digital property” had the name that he wanted to use for his business and happily signed a check for it.
Example 2: Flipping A Domain
So let’s take a look at CarInsurance.com.
In 2010, QuinStreat (a Digital Marketing company) purchased CarInsurance.com for about $50 Million. This was and still is the most anyone has ever paid for a single domain name.
On top of that, they bought Insurance.com and Insure.com for $35 Million and $16 Million respectively.
Now just think, if you were the owner of these domains and someone offered you over $100 Million for them, that would change your life quite a bit, wouldn’t it?
But the key to this huge profit payday is to have the forethought to buy specific domains and then hurry up and WAIT for the right company to come along to buy them from you.
It could take years because the company might not yet exist.
Example 3: Flipping A Website
Now, let’s say that your plan is to build a site with the goal of maximizing and monetizing traffic to that site. And for the sake of demonstration, you’re getting 100,000 visitors to your site every month.
If you used an ad network like MediaVine, Google Ads or Youtube, you could safely assume that you could earn upwards of $.03 for each reader. That means you could make $3,000 per months just from running ads. This doesn’t take into consideration the amount of money you could make from Affiliate Marketing platforms like Amazon or Clickbank.
Now, if you did all the content on your own, created all the links on your own, and your overhead was a measly $200/mo for hosting and research tools, then your profit margins would be nearly 90%!
You could live on that, right?
In fact, there are stories of kids still in their teens who are doing exactly this.
Just imagine if you have 10 different sites like this, each pulling in $3,000 each and every month… just on ads.
Digital Real Estate FAQs
Now I don’t want to give the impression that digital real estate investments is a sure thing. There are a quite a handful of horror stories with this just like any other industry.
Since the digital real estate investing is still relatively new with very few proven roadmaps, you could lose money if you’re not careful.
But when you take a look at the industry overall, there are a few things that we’ve found that seems to hold true.
Let’s go over some of them in the FAQs below:
Isn’t Digital Real Estate Investment Just Another Get Rich Quick Scheme?
The success you achieve in Digital Real Estate depends solely on how much work you’re willing to put into it. So, don’t believe all the hype that these big profit gurus tell you.
As a matter of fact, the main things that will prove if your website or domain names are successful or not is all depending what you make of it.
Furthermore, since all the conventional domain names have already been purchased, you’re best bet is to create an authority site.
Just know that you’ll need to spend about 18 months of sweat equity before things start taking off.
Can I Buy Domains With A Trademark?
Internet businesses pay out a lot of money to make sure that their trademarks are protected. So purchasing a domain with a trademark could land you in some hot water.
Even if you had not idea that the name was trademarked, you could still end up in court defending yourself.
So, it would be a good idea to create a unique domain name that could also be your business name.
How Easy Is It To Flip A Domain For Millions?
Although it’s possible, it’s not very likely.
Back in the 1990’s you could do this pretty easily, but with the advancement of technology that allows highly sought after domains to be picked up by industry insiders as soon as they are expired, it’s really hard to get your hands on the “good” domain names.
Lastly, very few domain names sell for millions of dollars anymore.
Can I Set And Forget My Domains Until Someone Makes Me An Offer?
I would certainly advise against this.
Though the process of purchasing and parking a domain is pretty easy, you domain can expire just as easily if you keep tabs on it.
It’s a good idea to check on your domain every one to two years.
How Long Does It Take To Make A Profit From Your Website?
Honestly, this is really hard to put a finger on.
It could take a lot of time and energy to get a website to the point that investors take notice. Good content, strong SEO, and affiliate marketing will go a long way in helping you get the attention you desire.
Of course, it doesn’t have to cost you your life savings either.
You could write the content for your site on your own and with tools like Photopea or Canva, you can build a nice looking website for well under $1,000.
This issue with new websites is time.
It’s takes time to dial in your website and get the traffic you need to make your site valuable to investors.
Even though you’re dealing with digital real estate, you should treat it like physical real estate. The more time and energy that you invest into it, the greater chance you will have to make a profit.
A good rule of thumb for brand new websites is 18 months. Of course, you could speed up the process by either hiring a VA, using software or plugins for WordPress platforms to do all the heavy lifting.
Should I Sell As Soon As I Get An Offer?
Well, this is entirely up to you.
But I have that say that you certainly don’t want to sell your website or domain too soon… it’s just not smart investing.
Patience is key here.
The more time and energy that you can put into your domain names by building a value-based website with good content, the more money you stand to make in the future.
Getting Started In Digital Real Estate
Digital real estate has many perks… the least of which is that it’s affordable. I mean you can invest just a few dollars into a property and turn that investment into a lucrative business with some hard work and determination.
Of course, that doesn’t mean that you won’t run into the occasional pitfall in your digital real estate journey. Just make sure that you have a solid strategy and put in the work up front in order to avoid the landmines later on.
It’s not unheard of to work for 12-18 months before making any money. But, with some experience building out websites and digging up domain names, the amount of time you invest in digital real estate can be dramatically shortened.
Our #1 Recommendation For Making Money With Digital Real Estate
Where these other models fall short is in scalability. Because in order to make a good amount of money with a 1 or 2 websites, you have to reach people on a national level.
But what if you went local?
With Local Lead Generation, you will be getting service requests from multiple sites at every minute of the day from people who are willing to pay a lot of money for what you can provide them.
I was watching a YouTube video once where the host made a comment that it isn’t about making a lot of money from one website… it’s about making a little bit of money from lots of different websites.
So, think of it this way….
What if you could have streams of investment income where you operated 10 rental units that you could charge anywhere from $750-1,000 per month?
That’s $7,500-10,000 per month in passive income!
What If You Invested Into 100 Rental Units?
But instead of spending $Millions to build houses or apartment complexes… you spend a couple hundred dollars to build websites.
You then get those websites ranked in the search engines for specific home-based services that customers are searching for.
Next, you offer your business opportunity to local business owners who are looking for customers and are willing to pay you for their information.
You’ve just created a Digital Real Estate Investment Empire that is potentially earning you 4-5 figures in PASSIVE INCOME on a monthly basis without spending a single dime on ads.
With conventional digital real estate, you have to compete with thousands, if not millions of others who are selling the SAME product to the SAME customers.
With Local Lead Generation, the competition is virtually nothing and your profit margins are 85-90%.
Now, I could go on and on, but I’m sure you have tons of questions about how to create Digital Real Estate assets and start building YOUR digital empire!