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Newbie website investor - But know nothing about websites.
Website=Passive Income
gmillion1




msg:4411798
 4:26 am on Jan 28, 2012 (gmt 0)

Hello, I am here out of curiosity I am a part time investor, but still keeping a full time Job. I was thinking of different ways of passive income besides realestate. When I actually thought of websites, I thought it would be perfect for investing in. My plan was to purchase already established websites that had already implemented revenue profit and traffic, something that I know would take capital, so I have been doing test runs by purchasing brand new Sites, I have 2 operating at the moment, but only one of them is actually doing anything,even though the new site is only making 100USD a month, I bought the site when it was only 4 days old, but after researching, I now understand that SEO on a website can take a long time before you see results. So back to my plan, I have found a few auctions online where I can purchase some existing established websites with traffic and profits, my main goal is to replace what I make now with the income I will have coming in from websites. I work for a company called Fluor Government Group, I can not complain about the Job, but I make pretty good income, but to me, saving means nothing if you can't find a way to convert it into passive income, which means you can still work if you like, but not have to relay soley on that Job alone. Before some ask, the sites I have now, I actually hired webmaster contractors to do the Job for me since I have no education or experience in being a webmaster, please let me know if these ideas sound logical, I believe if the websites are affiliate and customer based, the income will not be the same each month, but there will indeed be income, your thoughts?

 

lucy24




msg:4411809
 5:51 am on Jan 28, 2012 (gmt 0)

That was a pretty convoluted question. Let me make sure I've got it right. You're looking for areas where you can make money without doing any work or knowing anything about the field, and you want to know if web sites are a good possibility?

Was that the question, or did I miss part of it?

gmillion1




msg:4411811
 6:12 am on Jan 28, 2012 (gmt 0)

I am a investor, investing only, the current sites I have, people operate them for me, so no, I am not doing any work at all. But I do know a little, the basics, but I am not involved in any day to day work with operating the sites. I have my on SEO Team that does everything.

nomis5




msg:4411814
 7:41 am on Jan 28, 2012 (gmt 0)

Yes, it's quite possible to invest money in websites and earn money from it.

The trick is identifying which websites to buy, and as you say, you have no experience. To identify a website worth investing in does take some experience of the industry. There are a lot of tricksters out there as well as good people.

Your other main problem is hiring the correct people to run the websites. Again, without any experience you can be led a fine dance by some people.

gmillion1




msg:4411819
 8:22 am on Jan 28, 2012 (gmt 0)

Thanks for replying Nomis5, I do most of the purchasing from Flippa.com, I have made the point to the team that works for me that as long as I see good revenue coming in each month, they will continue to receive payments from me, based on their performance alone, I will either move on, or reward them for excellent service. But you are right, my only problem will be identifying the sites worth. Thanks.

stever




msg:4411821
 8:29 am on Jan 28, 2012 (gmt 0)

Assuming that I don't live in the same country as you, your question is at the level of me saying to you that I would quite like to buy property in your country (that I know very little about) and make money off it.

You would, I presume, regard the question as meaningless.

Of course, the concept is possible but the practicality of the concept might involve knowledge of relevant tax and property legislation, management of the property by third parties, and the successful implementation of a money-making plan (tenancy, flipping, etc.). None of which I would know much about.

If you are planning to do it then I would do it with small steps initially. Make those two a success and learn what you need along the way. If you don't make them a success, don't throw good money after bad.

The way most people make money in buying websites and running them is through leveraging their knowledge and experience to create a return on their investment. You, unfortunately, are at present lacking both knowledge and experience.

gmillion1




msg:4411824
 9:25 am on Jan 28, 2012 (gmt 0)

Thanks Stever, you were right to say that I don't have the experience, and that is the truth, but I know allot about business and investing, there are ways of me getting around with what I don't know by simply using money. I believe I will have an advantage since I do already have some capital. At this point, this is simply a test,which will start next Friday,but I do see your point, my goal is to diversify and create different sources of income, and I am testing websites only as a theory. So if I fail, then that will just be my loss, but at least I did make an attempt to see if it could be done. Based on my observation, two of you do actually agree. Thanks for the reply Stever.

BeeDeeDubbleU




msg:4411833
 10:17 am on Jan 28, 2012 (gmt 0)

I an afraid that I don't agree. If someone has a revenue source (a website) that needs little maintenance or effort to bring in this money they wont be selling it. Why would they? If you know a bit about business then you should understand that.

The main reason that websites are sold is that they have no prospects.

gmillion1




msg:4411835
 10:44 am on Jan 28, 2012 (gmt 0)

Thanks for your reply Beedee, websites to me seem to work a little like realestate, the website builders tend to make more money just by constructing the website establishing it and then selling it for a profit, in realestate you call this flipping, I do not see why you can't flip a website, it is basically online property of value, just like condos, and family homes. Suppose you had a website that was making you 300 per month, I presume you or the average seller would sell it for 3000USD. If you disagree, please visit bizbuysell.com, look at the businesses listed, calculate the cash flow, expenses,+ profit, you will see that these are actually being sold well higher than what the actual business is making per month or year.

BeeDeeDubbleU




msg:4411842
 11:32 am on Jan 28, 2012 (gmt 0)

Well perhaps it's just me but if I had a website that was making me 300 per month I would just take the money every month. In fact I do just that. ;)

There is very little maintenance required on websites like this. All I have to do is collect the money. It would take a LARGE cheque for me to part with these.

gmillion1




msg:4411844
 11:47 am on Jan 28, 2012 (gmt 0)

I agree, everyone is different. That is never ending income as long as you can keep the required maintenance on the site. Once I aquire more sites, I will never sell them, I never sell my realestate, Why would I......lol Thanks for the reply Beedee.

nomis5




msg:4411925
 6:14 pm on Jan 28, 2012 (gmt 0)

People sell perfectly good websites all the time, and bad ones as well.

Why might a steady earning website be sold?

Death is one reason, not to be too morbid. Ill health can sometimes generate a very real need for capital as opposed to income. Lots of circumstances can generate a valid need or desire for capital in the place of income.

Many people don't just sit on regualar earning websites, some have a vision for the future to make more money from the proceeds of the sale. In business, the buy, build up and then sell model is very successful, maybe even the most successful.

Some people might well have the view that a website is doing well at the moment but there is a threat on the horizon that they believe others can't see, so selling now at the possible peak might be very appealing. It may also be a wise move for the seller.

Many people simply can't stick with the "sit on it and earn a steady income" point of view. It's just not in their character. They need to get up, move along and do something different. It bores them to just leave an asset turning over.

These website owners are out there, as are the ones who will keep their regular earning websites come hell or high water. Keep looking and you will find good websites for sale. Just be prepared to pay a fair pice.

thirteen




msg:4411944
 9:06 pm on Jan 28, 2012 (gmt 0)

I agree with nomis5. Website owners sell their properties for perfectly good reason such as death or illness.

In addition to those, they also sell when other circumstances are presented which is beyond their control. One example is Amazon Affiliates and State Taxes. Amazon and States are fighting over the topic of taxes. Amazon dropped all the affiliates in the States that pass tax laws requiring Amazon to be a tax collector.

The former Amazon Affiliates switched their sites to other affiliate programs but finds their earnings dropped close to half because other affiliate programs don't covert as well as Amazon.

These site can be bought by someone that doesn't reside in one of those tax States. No additional programming work or subject knowledge of the site is needed to make more money on these type of sites. Just the transfer of ownership to someone who is eligible to be an Amazon Affiliate.

gmillion1




msg:4412003
 1:43 am on Jan 29, 2012 (gmt 0)

Thanks for the reply philipjterry, for the first few sites, I will pay about 10,000USD for each, just to start testing them before I get any bigger, what do you have in mind.

gmillion1




msg:4412004
 1:50 am on Jan 29, 2012 (gmt 0)

Great Response nomis, I agree, I see this with the housing market all the time, flipping a house or website is a quicker way to gain capital instead of just holding the property. And I do agree that there are allot of website owners that may have websites that may not be relevant in the near future, so they get rid of it which is a smart move.

gmillion1




msg:4412006
 1:54 am on Jan 29, 2012 (gmt 0)

Thanks fore replying thirteen, I am actually with Amazon ffiliates, but I was unaware that they had tax issues, thanks for sharing.

BeeDeeDubbleU




msg:4412052
 12:13 pm on Jan 29, 2012 (gmt 0)

Many people simply can't stick with the "sit on it and earn a steady income" point of view. It's just not in their character. They need to get up, move along and do something different. It bores them to just leave an asset turning over.

There is nothing to stop them moving on to do something different while still taking the income from their nice little earner. In fact this income could help finance something different.

Some people might well have the view that a website is doing well at the moment but there is a threat on the horizon that they believe others can't see, so selling now at the possible peak might be very appealing. It may also be a wise move for the seller.
That I can agree with. There are very few reasons to sell a successful website. One of them is any threat to their future success.
gmillion1




msg:4412059
 1:19 pm on Jan 29, 2012 (gmt 0)

I agree, that is like having a website that sells 8 track tapes, or a website that is selling CD's, when technology keeps evolving at the rate it has been. However, I do agree with selling (Flipping) a website and keeping websites for income reasons, why not do both? You get capital and income at the same time. Thank you all for the replies, I will start another thread after a month of buying another site and let you guys know how I am doing.

Kate_Oranum




msg:4412403
 5:58 pm on Jan 30, 2012 (gmt 0)

I agree with you nomis, too many webpage owners with irrelevant content -

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