So, you have heard about people making money online with websites, and you are interested in website investing yourself? But you are still a little unsure how all that works?
Don’t worry – in this article, we’ve got it all covered.
Bonus: We have also got some case studies to show you!
First Things First – What Is Website Investing?
It is what it says on the tin – you invest money in websites with the hope of making a decent ROI.
You achieve that through website monetization, then you have got 2 options, to hold the website as a passive income or sell it.
How ‘Techy’ Do You Need To Be To Get Started With Website Investing?
Not as much as you think. First and foremost, if you have the budget, you can easily hire a team to take care of all the technical aspects of the websites, as well as the SEO and content creation.
However, if you are starting out all by yourself, it will take a little time to get used to and learn how to set up/run a website. The good news is that there are many resources out there that can help you learn.
Should You Get Into Website Investing?
In our experience – yes! Definitely worth getting into. Remember, the world is moving into digital more and more each day.
Let’s put it this way, typically, an average rental ROI is between 5-15%. With websites, it can be as high as over 100%, depending on how successful your sites are.
This is a no-brainer. You would choose the higher ROI, right?
I am going to show you a couple of case studies, just so you can see what sort of ROI is achievable.
But before I do that…I will quickly run you through what aged domains are!
What Are Aged Domains – A Brief Introduction:
A domain name is an address that you type into your browser to access a specific site, for example, amazon.com is the Domain for Amazon’s website.
An aged domain is any domain that has been around the internet for a period of time and has a history. Could be days, months, and years.
Technically, a week-old domain is basically an aged domain. But, when looking at acquiring an aged domain, you would want to get an older domain, preferably a couple of years old as a minimum.
What Are The Benefits Of An Aged Domain?
Aged domains typically give you a jumpstart, furthermore, they also tend to have an established backlink profile, making the site authoritative in the eyes of search engines such as Google.
Acquiring backlinks yourself can take a long time and money. But when you use an aged domain rather than a fresh domain, the backlinks are already there, as well as the authority and trust of Google.
What Are The Cons Of Aged Domains?
Aged domains are more expensive than registering a brand new domain. They also require quite a thorough vetting process to ensure they are of good quality. You also need to ensure that the aged domain is extremely relevant to the niche you want to build a site in.
There is also a bit of technicality involved when dealing with aged domains, for example, you will need to re-create pages in order to maintain the link juice.
Watch this video “Restoring old pages from an aged domain, the right way!” For more information.
But, aged domains can really accelerate the growth of your new sites it’s definitely worth investing in if you have the budget.
Read more on aged domains here.
Case Study 1: 0 – 400k pageviews in 13 months!
The first case study I would like to show you is a site that was built on an aged domain.
The site was launched in December 2020.
Here’s the breakdown:
Watch this video to see Mark breaking down this case study.
Case Study 2: 0 – 3.3 Million Page Views In 13 Months!
Here’s the breakdown:
Watch the breakdown video here.
Looking at these case studies, you are probably thinking “I need to get into website investing ASAP” – that’s good, but remember, there is a risk with any investment. Nothing is guaranteed.
The reality is, that you may spend $30k on a website, but it may not make you any returns at all. This can be caused by a poor keyword research strategy, poor site structure, and poor content – there are a number of reasons websites do not succeed. All of these are avoidable mistakes with the right research or team of experts.
With the right strategy, and understanding that it is a long term investment, the chances of succeeding are high.
How Much Money Do I Need To Begin Investing In Websites?
Think of it this way, often in investments, the more money you put in, the higher the chance of a higher return.
Based on the 2 case studies above, the investment was pretty high – but the return was huge.
Now, there are a couple of questions you will need to ask yourself first, though:
1. Do I Have The Time In My Day To Do Things Myself?
2. Do I Want To Scale Up Quickly?
3. What Is My End Goal?
Now, let’s break it down.
Do I Have The Time In My Day To Do Things Myself?
Why does this matter? – Well, if you can spare 2-3 hours of your day, working on the site/s, you won’t have to hire someone to do this work for you, which in the end will reduce the total cost of your investment.
Do I Want To Scale Up Quickly?
If your answer is “yes” then this will determine how much money you will need to put into your website investment.
Well – scaling quickly means hiring people to do work for you, in large quantities – e.g keyword research, content, uploading, etc. The more highly targeted, quality content, on your site, then the more organic traffic you will attract which is how your site will make money. The faster you can add more content to the site, the faster your organic traffic may grow.
Wanting to scale quickly without help will be really hard. If you know what you are doing, sure you may see some results, but you are one person and will become a bottleneck. With an experienced team, who has expertise in keyword research and creating great content, the growth can be really exciting.
Now, if your answer was “no” – there is no rush, then the initial investment would be a lot lower.
However, the ROI, in the end, could be a lot lower too, and the time it may take to get you to a stage of a good ROI may take years. Also remember, success isn’t guaranteed.
What Is My End Goal?
Having a strategy is essential. Treat website investing as you would a business, you have to have a strategy put in place.
– Are you looking for another source of passive income?
– Are you looking at flipping websites?
Let’s break it down:
A lot of sites add displayed adverts on their sites. You have probably noticed when you visit a site, that there are pop-up advertisements, ads on the sidebar, and in the body of the articles.
They may seem annoying to the everyday person, but in reality, these adverts make website owners money. The ads do not need to be clicked on to earn the website owner money, they just need to be viewed.
Typically, the average earnings per 1,000 pageviews across niches will come out to a range of $12-18 for most sites. This can be driven even higher by optimizing the Ad placement, the quality of the content, and the type of content.
Now, this is not guaranteed, there are many factors that can contribute to the EMPV (earnings per thousand visitors)
Now, for you to get a decent passive income from your websites, you will need to do some simple maths and calculate how many visitors you will need to be getting per month to get a decent steady income.
Monetization Through Affiliate
Another way website owners monetize their sites is through Affiliate programs.
This is a commission-based system, you refer someone through to an online shop, such as Amazon, and if they then buy a product from that shop, you get a cut of the revenue. Simple.
With affiliate programs, typically you would need to sign up to these programs and link the products to your site in order to generate sales.
Often, website owners would do this in the form of a product review. However, the recent Google Algorithm update led to many affiliate sites going down due to the nature of their content – and that being heavily commercial.
Now, that doesn’t mean you can’t do any product reviews, you will just need to follow Google’s guidelines accordingly and do fewer product reviews and more informational pieces. Typically, we tend to go for the 90-80/10-20 rule – the highest being info content.
What is website flipping? In short, you buy an existing domain, you improve it, and you sell it for a higher price, also known as flipping.
Typically, a site is evaluated based on its monthly revenue. This tends to be between 35x to 55x depending on the deal you manage to get and the value of the site.
Let me show you an example.
Let’s say you have a website that is earning $1000 per month, now calculate this with a 35x that will give you = $35,000.
Now let’s do 55x = $55,000. You get the idea.
The monthly revenue can be based on anything, from display ads to affiliate commissions.
See more on the subject by watching Adam talking to Doug Cunnington about how he managed to increase a site’s revenue he bought from $60k to $130k.
How To Choose The Right Niche
A lot of people seem to be struggling with this. And the truth is there isn’t a simple answer.
The easiest place to start is to dig deep into your passions and interests.
This is especially helpful if you are going to start website investing by yourself. You will need to be doing a lot of the research and content creation yourself.
So, researching and writing about a niche you are interested in can be a huge bonus.
However, if you are thinking of hiring a team and investing a chunk of money, you can get advice from Niche Website Builders – or have a look at the aged domain inventory that has a selection of different niches.
Top 3 Mistakes Website Owners Make:
1. Giving up too soon!
Just like any investment, growing your site to a point where it has achieved a positive ROI can take time. You need to enter into website investing as a long-term investment and be looking at an absolute minimum of 18 months before seeing any exciting returns.
Typically, when you get into the website space, you would need to implement SEO strategies in order to gain traffic. And as we all know – SEO takes time! As detailed above, there are ways of accelerating this growth but patience is key.
2. Giving up when things get hard.
Haven’t seen any traffic increase in a while, and you are thinking of throwing in the towel?
Just because things are getting hard – doesn’t mean your website is a failure.
What you need to do is to take a good look at your current strategy and see what you can change in order to move the needle. Do some competitor research, talk to an expert, or hire someone to help you – just because something isn’t easy or is struggling to move forward, doesn’t mean it won’t be successful down the line.
3. Not getting help!
This is a big problem, especially if you are someone who has a tight budget. Or, if you can’t let go, and want to do it all yourself. The thing is, you have to remember your goal, and your goal is to scale and make a good ROI.
In order for you to do that, you have to outsource help and talk to experts in the field.
These are the top 3 mistakes website investors make when they get into the website space. Remember, good things take time, and often, when you need to take your business to the next level – you need to get help.
So, website investing seems like a pretty sweet deal. However, you have to remember that website investing is just like a business, and every business needs a lot of work.
If you are willing to put in the work, money, and time – the chances of you succeeding are pretty high.
With that said, the ROI can be huge – so go get your website started!
Niche Website Builders offer a full end-to-end solution for website investors. We can provide the initial site build, extensive keyword research, and high-quality content written specifically to drive more traffic to your sites.