I am seeing the birth of an entire new industry … and an entire new investment vehicle.
Those of you who know me know that I know investment vehicles. (If you don’t know me, look at my G+ profile.)
Anyway, what would you say if I told you that I know of a solid stock that pays a 50% dividend? You would say I am either crazy or don’t know what I am talking about.
However, you can’t deny it would be a great investment if it existed.
Not so fast! Consider this …
If you buy an online store that does a reliable $15,000 a year in net income, it would require you to work a maximum of 2 hours a day, and it costs $30,000 to buy. And
- it’s a good store that hasn’t done much SEO so there is opportunity to drive more traffic,
- has a good size mailing list so you can promote specials,
- happy returning customers and
- hasn’t done any advertising and doesn’t sell ads on the site so it has undeveloped revenue sources …. well, that’s pretty much the same thing as a stock that pays a 50% dividend.
If you hired an SEO service, started an affiliate program, sold ad space and pushed it on Facebook, you would probably see an improvement in revenues and profits while spending very little money.
This is not an unusual opportunity.
And most websites sell with a small amount down and a buy-out from revenues over a certain number of years.
There is a growing market in web properties and, while the market is still very young, great bargains can be had.
It won’t last forever.
Some sites are made to sell. There are lots of people out there who are creating game sites, driving traffic to them through SEO and social media at very little cost, and make fairly good money off selling ad space. Now, these aren’t much more than formula money makers but you might just be going to one of those sites to play Bejeweled for free amid ads that pay the site owner well. And the site might be for sale.
Lots of people find themselves in need of selling their websites. If you started a site that became popular, and you need money to buy a house or a car, or you have an idea for a different business or you are just sick and tired of your current blog or e-commerce site, you might just be interested in selling your site. It happens.
It happens all the time.
I can suggest a reputable place to start your self-education: Latona’s
The reason I say “reputable” is you want to deal with people who are professional enough to turn away the websites that use Black Hat techniques to make it look like they have a lot of traffic, and I happen to know Latona’s does identify and refuse to broker those sites because Latona’s is a client of mine. (Did you notice that was a disclaimer?)
There are some great opportunities to be found now — before investing in web properties is discovered by the masses.
And don’t kid yourself! There are a lot of savvy investors out there investing in multiple sites and hiring people to run them. They are making a lot of money doing this. In fact, there are private equity funds doing this right now.
I will continue to post about this subject because I believe the marketplace for websites will grow and prosper.