What Is Digital Real Estate?
In real estate investing, Digital Real Estate is a new way of doing business. For the thriving entrepreneur, investing in digital real estate involves no overhead. It mainly entails the purchase of domain names, websites and the management of social media accounts for internet enterprises. Any digital asset that can be bought or sold is likely a piece of digital real estate.
I’m sure you’ve heard something similar before.
In real estate, how do you make a million dollars?
Begin with a $2 million investment.
Yes, it’s true. The real estate industry is not to be taken lightly. It would be best if you always went into this venture with your eyes wide open because you have so many chances to lose your shirt.
If a house comes up for sale, you want to be the first in line to acquire it if the price is right. So make sure you do your homework.
Furthermore, if you have a house for sale, you’ll want to keep a list of possible purchasers on hand at all times, which necessitates continual prospecting.
But Before We Get Into That…
If you’ve read my other articles on real estate investing, you’ll know there are 3 primary ways to invest:
Wholesaling, buy-and-hold, and flipping.
While they each have their pros and cons, there is a ton of potential for success investing in real estate.
Real estate has created some of the largest fortunes in world history.
That being said, you should take some time to seriously think about something:
Is now the best time for YOU to get into real estate investing?
Because despite the potential upside, investing in properties or land takes a lot of capital, and is very labor intensive.
That means if you:
- Have less than 3 hours per day, OR
- Aren’t sitting on $20K+ in disposable income
This may not be the best time for you to start investing in physical real estate.
Don’t get me wrong, real estate investing can be an amazing way to protect your assets while generating cash – but there’s a time and a place for it.
But there’s good news!
All you need is a system to generate you the cash (& free time) you need to be ready for real estate investing.
My preferred method of getting there is by becoming a Digital Landlord.
It takes the benefits of real estate investing, but removes many of the barriers (& annoyances), like::
- Small cash flow on properties
- Having to take out debt
- Dealing with repairs and upkeep
- Dealing with tenants
The cool part is that the income is mostly recurring (AKA semi-passive).
You could make anywhere from $2,000-$10,000+ per month doing it.
You can build it as big (or small) as you feel like, without the annoyances I listed above.
If that sounds interesting, you might want to think about becoming a Digital Landlord.
Then, you can take the profits and start investing in physical real estate a year or two from now.
If you wanna see what Digital Real Estate looks like on the inside, keep reading.
What Have You Heard About Digital Real Estate?
When you think of property investing, I’m sure digital real estate isn’t the first thing that jumps to mind because digital real estate is a sort of property investment that takes place in the virtual world.
I’m specifically referring to website domains.
When purchasing a brick-and-mortar property, you can expect to spend at least $100,000. When it comes to investing in digital real estate, though, your investment is a fraction of that.
This is why digital real estate is gaining traction in the investment world: you’re investing in a website, which means you have essentially no overhead.
Digital real estate is becoming a more attractive choice for investors with little upfront commitment.
After all, who wouldn’t want to gain more money while investing less?
So What Are The Upsides?
Anyone with a computer can invest in digital real estate.
However, even if you can invest in digital real estate, you are unlikely to be successful unless you have a strategy in place.
Of course, there is no scarcity of digital real estate courses. However, there aren’t many books regarding digital real estate available.
When you’re doing your research, you’ll come across phrases like:
- XML Sitemaps
- Content Creation
Don’t be put off by any of this; it’s all simply a part of the digital real estate business.
And it may be highly profitable for those of you who are prepared to put in the hours necessary to see a profit. Profit margins of 90 percent or higher are not uncommon.
Are you still interested?
To boost your income potential, you’ll need first to grasp how the real estate digital sector operates, what types of digital properties you should focus on, and the hazards you’ll need to avoid.
That is why we decided to write this essay.
We’ll walk you through the ins and outs of digital real estate so you can at least grasp the fundamentals of being a digital landlord.
You’ll create a digital investing portfolio that will be the talk of the town in no time.
So What Exactly Is Digital Real Estate?
Digital Real Estate comes in a variety of forms. Your property might come in a variety of shapes and sizes. Listed below are a few examples of digital assets:
- Websites: Authority blogs, Affiliate sites, Shopify stores
- Apps: Applications for your smart phones, notebooks, and tablets
- Domains: Website names that haven’t yet been launched
- Digital Products: Training classes, Membership courses, eBooks
In some ways, digital real estate is similar to traditional real estate in that you can sell your virtual real estate asset for a quick profit after allowing its value to appreciate.
Both traditional real estate (passive rental income) and digital real estate (lead generation, ad revenue, affiliate commissions) can be profitable. The more money you make, the higher the property value rises.
With digital real estate, you’re purchasing an asset and increasing its value so that you may sell it later if you want to.
So What Does This Mean?
You may, for example, create a website tailored to a specific niche demographic that generates passive income through ad revenue.
You might want to invest in a domain name that you think will be lucrative in the future. This is particularly effective when it comes to politicians seeking higher office. When you become aware of this, purchasing a domain like “BrianJones4Governor.com” is the type of digital real estate investment that can pay off significantly.
When you think about it, the first domain name (Symbolics.com) was purchased in March of 1985; therefore, investing in digital real estate is still very new.
In reality, you could register a domain for free until 1995. It wasn’t until the Foundation for National Science gave Network Solutions (a technology consulting firm) permission to charge $100 for a two-year registration that they could trust.
You may now purchase domains for as little as one dollar ($1) each month for the first year. Furthermore, creating a website can be very inexpensive.
Of course, you should get a domain name that will attract many visitors to your website.
We’ll go into more detail on buying domains and building websites as digital real estate investments later, but for now, let’s look at the benefits of digital real estate.
What Are The Advantages Of Digital Real Estate?
Even if you don’t consider yourself an investor, there are numerous benefits to this form of investing.
Here are some of the reasons why digital real estate is so profitable:
To Get Started, It’s Cheap: A domain costs roughly $10 and hosting costs $5 per month. Then you can either develop a website or keep the lease till another buyer comes along.
Higher Profit Margins: Your profit margins could be as high as 90% because of the minimal start-up costs.
Quick Appreciation: The value of your asset increases quickly. Your website’s value can expand by five times in a year.
High Supply: No matter where you live, you can buy as many domains and websites as you wish.
Passive Cash Flow: While you still control your website, you can make money by putting adverts on it, becoming an affiliate, or linking to another site.
It’s simple to improve your website: By just adding content to an affordable website with a proper domain name, it may be made more valuable than rehabilitating a house.
Low Risk: You can make money by investing $100,000 or more in a house or apartment building, but the risk is much reduced when buying a $20 domain.
Building for the future: Because the online world will become an increasingly important part of our lives, owning online real estate properties is the wisest move you can make.
What Types Of Digital Real Estate Make The Most Money?
You may now be wondering how to invest in digital real estate and how to profit from digital real estate.
Given all of the benefits we’ve just discussed, let’s look at which forms of digital real estate will produce the most money.
Buying domains and creating websites is the most straightforward path to take for digital real estate investments.
If done correctly, each of these business strategies has the potential to make a lot of money. Consider these websites to be a little restaurant you’ve recently purchased. Customers and staff are present in every restaurant. All you have to do now is come in and double-check that everything is operating smoothly.
Of course, like with any business, you are free to make whatever changes you wish to the website, but don’t go crazy. Remember that it’s still a company doing a great job before you acquired it. As a result, don’t reinvent the wheel.
Several websites haven’t been developed yet but have a lot of earnings potential. Consider these “stores” that are closed yet in a location where many people pass by.
These domains may be challenging to come by, but if you do locate one and pair it with the right business, you may expect a significant return on investment.
But, to make money, you’ll need to put money into your business, which means you’ll need to figure out how to entice people to come to your “shop.”
So, let’s see what you’re capable of.
1. Building Websites
Building websites is the most fundamental digital real estate investment, second only to buying domains. If you can obtain a lot of traffic to your website, you’ll be very appealing to other investors and venture capitalists.
Investors prefer to diversify their portfolios in various ways, so if you have a website that receives 200,000 visitors per month and is profitable, don’t be shocked if people contact you about collaborating with you.
Large corporations are also constantly looking for new ways to sell to a specific demographic. So, if your website focuses on a single product or service, you’d be pretty beneficial to their growth.
Profit margins of 80-90 percent could be achieved with a small investment in a domain, website, content, and strategic linking.
It’s true that in the digital real estate industry, it’s far easier for major corporations to buy a website that is “ready to go” and already profitable than it is for them to develop one from the ground up.
So it’s a no-brainer for them to pull out their checkbook when they come across a website that already has excellent content and is profitable.
It makes no difference what kind of website it is.
It may be a website about trucks and vehicles, baby clothes, or a home decoration blog; as long as the website is profitable or has the potential to be good, digital real estate investors will find it interesting.
Even if it’s only an issue of the websites’ substance, if the theme is relevant to individuals who invest in digital real estate, it will be promptly picked up.
2. Buying Domains
In the world of digital real estate, buying and selling domains is still a well-guarded secret. Furthermore, since the dot.com bubble burst years ago, making money using this strategy has become a little more complicated.
Although it can be challenging to identify profitable domains for investing in websites, getting started is relatively simple. Thus most investors consider it to be the most efficient approach.
Of course, domain investors (also known as “Domainers/Domain Investors”) buy domains primarily to flip them. However, investing in domains such as this requires some patience.
You should be aware that the domain you purchase today may take several years before anyone else wants to buy it from you. But, when that moment comes, you have the option of making a small profit or a large one (within reason).
This is precisely how you may purchase digital real estate outright.
Let’s look at a couple of domain investment examples and a website investment example.
Example 1: Flipping A Domain
I once knew a man who, by all accounts, was an entrepreneur looking to launch a new venture. However, the domain name he believed was critical to his company’s success was owned by someone else.
This guy tells me that he just bought the domain, developed a simple one-page website to display adverts on, and then waited for someone like my friend to buy it from him.
He did, after all.
It’s a $5,000 prize!!!
This entrepreneur spent $5,000 on a domain that cost no more than $20 at most. However, this “digital property” had the name he desired for his company, and he gleefully signed a check for it.
Example 2: Flipping A Domain
So, let’s check out CarInsurance.com.
QuinStreat (a digital marketing company) paid roughly $50 million for CarInsurance.com in 2010. This was, and continues to be; the highest price ever paid for a single domain name.
They also paid $35 million and $16 million for Insurance.com and Insure.com, respectively.
Consider this: if you were the owner of these domains and someone offered you over $100 million for them, wouldn’t it drastically alter your life?
However, having the foresight to purchase specific domains and then hurrying up and WAITING on the excellent company to come along and buy them from you is the secret to this massive financial payday.
Because the company may not yet exist, it may take years.
Example 3: Flipping A Website
Let’s imagine you’re planning to create a website to increase and monetize traffic. And, just for the sake of argument, let’s say your site receives 100,000 monthly visitors.
You may reasonably guess that if you used an ad network like MediaVine, Google Ads, or Youtube, you could make upwards of $.03 per reader. That means that simply by running advertising, you may earn $3,000 every month. This does not account for the amount of money you could make through affiliate marketing networks like Amazon or Clickbank.
Now, if you wrote all of the material yourself, built all of the links yourself, and spent only $200 per month on hosting and research tools, your profit margins would be nearly 90%!
Isn’t that enough to sustain you?
There have been reports of children as young as adolescence engaging in this behavior.
Consider how much money you could make if you had ten sites like this, bringing in $3,000 each month, only on advertisements.
Digital Real Estate FAQs
Now I don’t want to give the impression that digital real estate investments are a sure thing. There are quite a handful of horror stories like any other industry.
Since 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 look at the industry overall, there are a few things that we’ve found that seem to hold.
Let’s go over some of them in the FAQs below:
Isn’t Digital Real Estate Investment Just Another Get Rich Quick Scheme?
So, time for the $1,000,000 question – is Digital Real Estate a scam?
No, not technically. You can 100% make money with this program, though it’s not nearly as simple as they make it seem.
As with most businesses, there is A LOT of work to be done up front & no guarantee of you being successful.
Not to mention the profit margins are typically pretty small.
Don’t get me wrong, I’m a big proponent of front-loading work now, so that you can reap the rewards later.
But if I’m gonna do that, I want the rewards to be HIGH and virtually guaranteed.
I’d rather put in that same 3 months of work (in my spare time) & build a handful of Digital Rental Properties that each produce $500-$2,000 checks every single month afterward (AKA recurring income).
And the cool part is that you can do it in a lot less time than 3-months (I personally did it in my first 2 weeks of being a Digital Landlord).
Unlike physical real estate, you can do it from anywhere in the world, so it’s a genuine “laptop-lifestyle” business.
All you need is an internet connection.
Some of my friends are Digital Landlords that run their 6-figure businesses from:
- Camping trips at national parks
- Beachfront in Hawaii
- On the road in a camper-van (with a pet pig!)
They focus on living an enjoyable life first, and focus on income second. All thanks to this program.
They can take weeks or months off, and money keeps rolling in.
Living happily is the top priority.
If the thought of living perpetually at your dream vacation spot interests you, being a Digital Landlord might be for you!
Can I Buy Domains With A Trademark?
Businesses on the internet spend a lot of money to ensure that their trademarks are protected. Buying a domain with a trademark could find you in legal trouble.
You might end up in court defending yourself even if you had no knowledge the term was trademarked.
As a result, it’s a good idea to develop a unique domain name that may also serve as your business’s name.
How Easy Is It To Flip A Domain For Millions?
Although it is feasible, it is unlikely.
You could do this fairly simply in the 1990s, but with the evolution of technology that allows highly sought-after domains to be bought up by industry insiders as soon as they expire, getting your hands on the “good” domain names has become extremely difficult.
Finally, domain names no longer sell for millions of dollars.
Can I Set And Forget My Domains Until Someone Makes Me An Offer?
This is something I would strongly warn against.
Though purchasing and parking a name is quite simple, if you don’t maintain track of it, your domain might expire just as quickly.
Every one to two years, it’s a good idea to check on your domain.
Finally, domain names no longer sell for millions of dollars.
How Long Does It Take To Make A Profit From Your Website?
To be honest, I’m having a hard time putting my finger on it.
They are getting a website to the point where investors notice it could take a lot of time and effort. Good content, SEO, and affiliate marketing will all go a long way toward getting you the attention you want.
Of course, you don’t have to spend your entire life savings on it.
You could write your content for your site, and with tools like Photopea or Canva, you could create a professional-looking website for about $1,000.
The issue with new websites is that they take time to develop.
It takes time to fine-tune your website and attract the traffic you need to attract investors.
Whether you’re dealing with digital or actual real estate, it would help if you treated it as such. The more time and effort you put into it, the better your chances of profit are.
For entirely new websites, a reasonable rule of thumb is 18 months. Of course, you could speed up the process by hiring a virtual assistant (VA) or using WordPress software or plugins to handle all of the heavy liftings.
Should I Sell As Soon As I Get An Offer?
So, the choice is entirely yours.
However, I must warn you that selling your website or domain too quickly is not a good idea. It’s simply not a wise financial decision.
Patience is the key to success in this situation.
The more time and effort you put into your domain names by creating a value-based website with high-quality content, the more money you will generate in the future.
Getting Started In Digital Real Estate
There are numerous advantages to digital real estate, not the least of which is its affordability. I mean, with a little hard work and drive, you can put a few bucks in property and turn it into a profitable business.
Of course, this does not rule out the possibility of hitting a snag along the way in your digital real estate journey. Ensure that you have a good strategy in place and put in the necessary effort upfront to prevent landmines later on.
Working for 12-18 months before making any money is not uncommon. However, if you have any experience constructing websites and locating domain names, you may drastically reduce the amount of time you spend on digital real estate.
Our #1 Recommendation For Making Money With Digital Real Estate
I’ve personally tried all of the major online business models:
- I’ve sold fidget spinners through Amazon FBA
- I’ve drop-shipped a toilet-bowl putting green on Shopify
- I’ve sold women’s health supplements via Clickbank affiliate marketing
And I made money with all of them, so trust me when I say: there is no “perfect” business model.
It’s worth noting that I FULLY endorse real estate investing as a way to grow wealth, and that’s why I invest my own money in commercial and residential real estate.
That being said, my #1 recommendation for making real money online as a beginner is, hands-down: being a Digital Landlord.
Whether you’re a complete newbie, or you’ve been around the block before but have never had that “big win” to propel you forward, becoming a Digital Landlord is for you.
1.Time: If you’ve got a spare hour-or-two each day, you can do this. If you want to drop everything and go all-in, you can do this. More time obviously means faster results, but even putting in a few hours per day is enough to see real success.
And because of that flexibility, you don’t need to trade your time for money. Once the income starts, it’s recurring.
That means you can take a month off, travel the country, pursue a passion project, chill on the beach, or charter a boat across the world.
But you can only do that once you’ve created an income stream that doesn’t require YOU to be there all day, every day.
Real estate investing is a FULL TIME JOB. If you stop finding deals, your money dries up.
2.Ownership & Control: Unless you’re buying your properties in cash, you don’t technically own the properties – the lender does.
If you miss a single payment, the property can be taken from you.
Why pour your soul into a business that could be taken away from you at the drop of a dime?
When you’re a Digital Landlord, you literally own all of the assets, which means you have ultimate control.
3.Ongoing costs: With real estate, profit margins are actually pretty slim. Real wealth is made in owning the assets, and owning A LOT of them.
Being a Digital Landlord, your profit margin is nearly 100%. Watch here to learn how.
Just a reminder: these Digital Rental Properties are worth (at a minimum) $500/mo in semi-passive income. And each time you create another one, your income increases, and the effort put into creating the next property decreases.
Best case scenario, you have properties bringing in over $3,000+/mo on auto-pilot.
4.It’s Effectively Copy-Paste: Here’s my favorite part: once you have your first Digital Rental Property up, you can literally copy-paste another version of it and find another willing “renter” in a few days. DOUBLING your income doesn’t get much easier than that…
If you wanted to double your income with real estate investing, you would need twice as many properties, or double your profit margins on each property. And I can guarantee you , that’s a lot harder than a few clicks & a phone call.
5.Make Money Helping Real People: When you’re a Digital Landlord, you’re helping solve REAL problems that people are ASKING for help with:
Small local businesses around the world need one thing: customers. Without them, their business would fall apart. If we can provide those customers, they’re going to be really happy – and they’re going to pay you for it.
You’re helping a struggling mother or father put FOOD on the table for their families, put their kids through college, or simply live life a little bit more comfortably.
Having this type of impact on the world is what will help you sleep soundly at night.
So, the rest is up to you. You could keep looking at other opportunities Digital Real Estate which might make you money.
You could keep researching and researching for the next few months (or few years), never making a concrete decision.
OR, you can look deep inside, think about those dreams, hopes, & desires, and make the decision to ACTUALLY make it happen, just like it has for thousands of other students before you.
Making a fortune while actually helping real people that need it.
If this sounds like you, click here to see how it all works.