Sunday, June 30, 2013

Why Website Investments Are Better Than Stock Market Investments


Many do not know but there is a special type of "market" brewing out there where a significant amount of money is changing hand a new "investment" vehicle is rising. What we refer to is web site market. Almost nay web site can be monetized which means its traffic can be converted to cash flow. Website monetization converts existing traffic being sent to a particular website into revenue through methods like Pay per click (PPC) , affiliate marketing, etc.

And when a web site generates cash flow, it becomes an asset. And there are many people out there buying and selling this assets. Just take a look at Flippa.com's Just Sold section (Flippa.com is a market place where web sites are sold and bought): You will see many closed sales with thousands of dollars of cash.

As I was writing this article there was a site on the list named SocialDataExcavation.Com which was sold for $14,500. Why someone pays $50,000 for a site which was just created in April 2013 (domain registration was listed on the sale page)? Because if the revenue claims are true, the site was making $3,150 net income per month. So if there is no fraud here and the same level of income is maintained the buyer will earn $37,800 in the next 12 months which is 260% ROI.

Why Website Investments Are Better Than Stock Market Investments
Although not for everyone, web sites are emerging as cash flow
generating investments as market places like Flippa.com make
it easier to sell and buy them.
Above example is a marginal one indeed. Usually the return is much less than this but still can be very high compared to traditional investment vehicles:

With proper research, due diligence and experience, a website portfolio will return on average between 40-100% of your investment after one year’s time. No stocks will pay this dividend. But what I like most about web site investment is that, you are not a passive financial investor or stake holder but you are an active entity who can do more to improve the ROI for the website. You can actively promote the site, draw more traffic to it, add more content, more SOE, etc.

Read more here Why Website Investments Are Better Than Stock Market Investments.

Disclaimer
This blog article is to provide general information only and should not be treated as an invitation to buy or sell anything.  Users of this article should consider this as a one of the many factors in making their investment decision. Users should make reference to other sources of information and specific investment advice to obtain a more objective view of the market. Asia Singapore shall not be responsible for losses suffered.

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