Everywhere I go these days (whether it is a conference, mastermind group or a local marketing meet-up group), the term “Virtual Real Estate” continues to come up. I believe the initial instigator of this term was John Reese (creator of Traffic Secrets and Income.com). While the US is currently going through a little [...]
Everywhere I go these days (whether it is a conference, mastermind group or a local marketing meet-up group), the term “Virtual Real Estate” continues to come up. I believe the initial instigator of this term was John Reese (creator of Traffic Secrets and Income.com). While the US is currently going through a little bit of a physical real estate market decline, the virtual real estate market is alive and healthier than ever.
So what is virtual real estate?
Well, it is exactly as it sounds! Websites themselves ARE virtual real estate. When you create a website, you create an asset. The value of these assets are based on a few factors:
- Traffic
- Size
- Content
- Earnings
- Design
- etc.
If I were to sit down and create a website today, it would probably not be worth much (maybe the price of the domain name, which also has value). But in time, I will create a website, which earns some money through advertising and gets a respectable amount of free traffic. NOW, this website is an asset! It is now a piece of virtual real estate with value. If you created a website that made $1000 per month, do you think someone will be willing to buy it? Probably! (and usually multiple times its monthly revenue) Selling a website like this for $10,000 would not be unrealistic.
What if I have a website that received 10,000 visitors per day but for some reason, it is not making any money? This may be a “fixer-upper”. Maybe the website gets great organic traffic, but the on-site conversion tactics are poor. Buying a website with built in traffic may be a gold mine! Buy it for $10,000 now, sell it for $100,000 in six months after the conversion problem is fixed.
But of course, it could go in reverse! Maybe I bought a site that sold Data Entry eBooks last year for $50,000 (because it was earning $5000 per month). Then Google and Clickbank both decide not to support these type of products and your earning drop to $1000 per month. You may have just bought in the middle of the Florida swamps!
Just like physical real estate, virtual real estate has its ups and downs. There is a lot of potential for growth and big earnings, but there is also risk involved. For the newbie low on capital, this type of venture may be a bit tough to manage, but for the intermediate to experienced online marketer, this may be your wave of the future!
- Matthew Bredel
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My name is Matthew Bredel and as of March, 2007, I am a full-time, work-at-home internet marketer.
For close to 10 years, I worked for a defense company which was an OK job, but I was so uninspired in life and frankly, I needed some more money. That is when I first discovered internet marketing! Now I admit that I didn't start making thousands in my first couple of months (in fact, I lost my shirt!), but I finally saw the "internet light"...
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February 24th, 2008 at 2:36 am
Your post is very well crafted and I have learned so much about your interests and real estate in Florida. I’ve added your blog to my reading material. Thanks for the information!
June 24th, 2009 at 9:55 am