Digital real estate is a phrase that’s becoming increasingly popular. I even mention it in one of the videos in our free affiliate marketing course.
But what exactly is digital real estate? How does it work? And how can you make money from it?
More importantly, is digital real estate even legit?
If those are some of the questions you’ve been wondering, you can rest assured that you’ve landed in the right place.
In this blog post, I’ll be uncovering everything there is to know about digital real estate. So let’s dive in 💪
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What Is Digital Real Estate?
The phrase digital real estate refers to digital assets that can be sold or rented for profit, just like typical real estate can be in the real world.
This could include domain names, websites, or social media presences, etc.
But primarily, when people talk about digital real estate, what they’re talking about are websites & more specifically, niche affiliate websites or lead generation websites.
I’ll explain more about those & how they work in just a moment, but first, I’ll explain why they’re referred to as digital real estate.
The reason they’re referred to as digital real estate is because they are digital assets that you can invest in & generate passive revenue from, just like you can with brick & mortar real estate.
The benefit, however, is that digital real estate typically costs much less than brick & mortar real estate & can provide a much more significant ROI over a much shorter period of time.
For example, it’s not uncommon to find people flipping digital assets & generating 5-figure profits (or even 6-figures) within just one year.
And an investment of around $10,000 could see you generating a consistent & completely passive income of around $1,000+ per month after one year.
So it’s easy to see why digital real estate has become so attractive… And that’s why we teach people how to build digital real estate websites in our free training.
Now as promised, let’s take a look into how digital real estate websites actually work.
How Does Digital Real Estate Work?
In short, digital real estate involves launching a niche website, adding content to it & getting it ranked in search engines like Google.
Then, as the website begins to gain ranks & get traffic, it begins to increase in value as marketers can use it to promote products or generate leads.
The more traffic it has, the more money it becomes worth.
And when it gets traffic, you can 1 of 3 things:
- You can sell it for a quick profit (known as flipping)
- You can make money from it yourself (through affiliate links or lead generation)
- You can rent it out to others for an agreed monthly fee
The last method is known as rank & rent SEO, but that’s the least optimal way of making money. Most people simply flip the websites or keep them & generate revenue from them themselves.
And depending on the niche & the traffic volume, the amount you can generate from these types of websites can be pretty substantial.
In fact, there are many people who have become millionaires from these simple types of niche websites.
I’ll explain exactly how the websites generate money in just a moment (and how you can make money from digital real estate yourself), but first, let’s cover a pressing question.
Is Digital Real Estate Legit?
Yes & no. In and of itself, digital real estate is legit. You can certainly build websites or buy domains & generate passive revenue from them or sell them for a profit.
However, many scam artists have latched on to the phrase “digital real estate” & created courses that are simply designed to sucker people out of their hard-earned cash.
In short, they make generating revenue from digital real estate seem way easier than it actually is & they convince people to hand over their money in order to learn how to get a slice of the pie.
Unfortunately, most of the courses then fail to deliver on their promises & do nothing other than separate the people who bought into them from their hard-earned cash.
So, yes, digital real estate is legit… But most courses that claim to teach you how to make money from digital real estate are not legit.
That’s why we teach it for free in our training course. 😎
But now that we’ve got that cleared up let’s take a closer look at how you can actually make money from digital real estate.
How To Make Money From Digital Real Estate
To make money from digital real estate, you have 2 options. You can build your own digital assets from the ground up, or you can invest in them.
And whilst most digital real estate course creators would tell you to just invest (because they’re after your hard-earned cash), that is not a good option unless you’re already experienced with building, managing & making money from websites.
If you don’t have that experience, you should always build your own asset first.
Otherwise, there’ll be a very high chance that you’ll lose your investment because you need to know how to maintain the website to keep it profiting, just as you would need to maintain brick & mortar real estate to prevent it from rotting.
Thankfully, building your own digital real estate asset is very easy & low-cost to do. Plus, it offers the potential for a huge ROI.
All you need to do is simply:
- Get a domain name
- Build a website
- Create content
- Add affiliate links
(exactly how we show you how to do in our free training)
And nowadays, you can even leverage AI to create the content for you.
Then, as soon as the content begins to rank in searches, your website will begin making money.
From there, you can simply decide if you wish to keep the website & maintain the passive income or list it for sale & try to flip it for a lump-sum profit.
Now, let’s take a closer look at the investing side of things.
Digital Real Estate Investing For Beginners
Investing in digital real estate can certainly be very lucrative, but only if you absolutely know what you’re doing. If you don’t, it can be very easy to get burned.
For example, think about brick & mortar real estate. If you do not know what you’re looking at when you’re buying a house, it could be very easy to run into hidden problems.
And it’s the same with websites or other digital assets.
That’s why, as mentioned in the previous section, it’s vital that you gain first-hand experience before delving into the world of digital real estate investing.
But let’s say you’re ready; how do you go about it?
Well, investing in digital real estate is pretty easy. All you need to do is leverage a reputable online marketplace for digital assets like Flippa.
At Flippa, you can browse through websites that people have listed for sale & you can even filter them based on monthly or annual revenue, etc.
Then, once you’ve found an asset you’d like to purchase, you simply make the payment & transfer both the domain name & the web hosting.
As soon as you have them both, you officially own digital real estate.
And then, you can either choose to continue growing the website by adding more content to resell it for a profit, or you can add your own affiliate links or advertisements & generate a passive income.
But as mentioned, there are risks if you don’t fully understand what you’re buying.
You see, shady sellers can use illicit tactics to increase their search rankings or conversion rates to inflate the price of the sale.
This means that your website may generate profits as expected at first, but upon a Google update, it could lose rankings & the revenue could completely disappear.
Unfortunately, that happens a lot… But an experienced webmaster would be able to check things such as the backlink profile, analytics & content quality score to make better-informed decisions.
Again, these are all things we teach in our free affiliate marketing training course.
But if you are unsure or if you have never generated revenue from a website before, you should definitely look to build your own digital real estate first.
Only invest in digital real estate after gaining first-hand experience.
The good news is that the folks who build the assets generally see the largest profits, meaning once you’ve learned how to build the sites, you could launch your very own digital real estate business.
I’ll explain how a digital real estate business works below.
Building a Digital Real Estate Business
Generally, the people that make the most money from digital real estate are those that build the assets themselves & then sell them for a profit after 6 to 12 months.
That’s because it typically only costs around $100 to launch a website, yet after 12 months, it can be sold for in excess of $5,000.
And it’s not uncommon for sites to sell for 5 figures after just 12 months. In fact, if you browse through the Flippa listings, you’ll see there are many sites aged less than that selling for 5-figures.
So, instead of investing in digital real estate & risking your funds on other people’s sites, you can build a digital real estate business of your own & sell them to others.
All you need to do is master the art of creating a website, adding content & getting it to rank in search engines like Google, Yahoo & Bing.
The good news is that in order to become worth money, websites don’t actually need to be generating income. People will actually buy websites just because they’re aged.
That’s because search engines trust aged websites more, meaning they’re easier to rank higher in the search results, so they’re valuable to people who want to start earning quickly.
To highlight that, take a look at the price of these affiliate websites:
None of those websites listed above get any traffic & nor do they make revenue. They’re simply sites with around 10 to 20 pieces of content that have aged for between 6 to 12 months.
So you can likely see the profit potential when it comes to building a digital real estate business… And it’s very easy to get started with.
You don’t need a huge upfront investment, and our free training shows you step-by-step how you can build your first website & make it become valuable.
Can Digital Real Estate Provide Passive Income?
Absolutely. In fact, that’s why most people who invest in digital real estate (or build their own assets) become quite reluctant to sell.
Many people get into digital real estate for the idea of earning large cash sums from sales, but then once they see the flow of passive income, they often grow more towards the idea of earning from the websites themselves.
However, what you must be aware of is that the passive income isn’t guaranteed.
For whatever reason, a site could lose its rankings & that could result in the passive income declining or even stopping altogether.
Though, it’s uncommon for that to happen unless the owner of the site used methods to rank it that go against Google’s guidelines.
But still, it’s always important to keep that in mind. Whilst digital real estate can provide passive income, it shouldn’t be seen as guaranteed.
The Bottom Line
Investing in digital real estate can certainly prove to be very lucrative, providing that you know exactly what you’re doing.
However, if you don’t, it can make for a quick way to lose money.
But the good news is that doesn’t mean you still can’t partake in it & profit from it because instead of investing, you can simply build the assets yourself instead.
In fact, building the assets is the way I’d personally recommend doing it.
That way, it requires much lower startup investment & it also means you’re in full control of how it’s built, so there’ll be no nasty surprises later down the line.
And if you’re interested in learning how to do it, be sure to check out our free step-by-step training course.
In our course, we teach you how to build your very own niche website & how you can leverage it to generate passive income online.
So, hopefully, you found this blog post helpful & hopefully it covered any questions that you may have had about digital real estate investing.
Of course, if you do still happen to have any questions or comments, don’t hesitate to leave them below.
