Before the recent property crash it seemed everyone wanted to be a property developer.
Every TV channel seemed to have it’s own property show, following newbie developers buying derelict and rundown property and try to transform them into beautiful homes making them thousands of pounds within a short time.
Some did well some didn’t do too well, some broke even and some lost money. Property can make good money fast if you do everything right but even then that doesn’t guarantee a sale. You might have a fantastic property in the best location; you might have got it for a rock bottom price, spent a minimal amount on developing it up to a stunning standard and still not get a sale due to the fact people do not like it.
The market can change half way through developing the property, it could take ages to sell it once it is finished. The amount you earn from the sale of a house can be the equivalent to a year or twos wages however to make that amount you could be juggling large amounts of money.
Much of that is debt, loaned from banks with large monthly re payments. In many shows we see people stressing as they have mortgages for both their own home and the developing property, running into re payments of thousands each month.
Every month the property isn’t finished and sold it eats into any profit. As an example after borrowing a sum of £200,000 to buy a property for £150,000 with £30,000 pencilled in to develop the property and then sell the property hopefully after 3 months for £210,000 then you make £27,000 profit after £3,000 has been paid in mortgage re payments. That is a small profit from a large layout.
Wouldn’t you prefer to spend £27,000 and make a £210,000 profit? Well with the internet that is what can happen and it happens regularly. Every website and blog should be seen as being an online property, they may not be made of bricks and mortar but they are worth something to people and when created properly with a plan they can be worth far more than you put in.
Recently I went to a local restaurant with my girlfriend at lunch time for a special all you can eat buffet they do, after stuffing ourselves and having a few drinks we had spent £25 in about an hour. That isn’t a huge amount, and as for a restaurant it was incredible value for money but the reason I am telling you this is because you can host a whole website for less than that.
The image below shows a basic hosting plan at £1.66 which is £1.99 per month when VAT is added. 12 months at £1.99 is £23.88. In the USA the hosting can be as little as $47. There is the added cost of registering a domain which is around £8 and $8, so for around £40 and $60 you can have a website for a whole year. Now I know you are starting to understand here, that is nothing is it when you compare that price with the price of a meal.
Now here is the really important thing to consider, sites can be sold for thousands of dollars at sites like flippa.com. Ramsay the BlogTyrant has sold several blogs around the $10,000 price tag. He sold his first when he was at University after 8 months of starting it.
As another example I want to show you a blog www.PattayaGirls.org that is less than a year old, it has only 3 pages and 6 articles on it, it was switched off for several months due to the creator becoming ashamed of the content of the site, and he set it live once again when he decided to sell. It made no monthly revenue and hadn’t been live for a whole year but it still sold for $2,200.
Normally a website is valued at what it earns in revenue in a month then that is multiplied by 12 or sometimes 24. If people can see that a site has potential they will pay a lot more than its value. Some sites don’t always sell for the expected value however they can still be far more than what you paid for it.
You have to build the site up though, the example of the PattayaGirls site is that it was built around 2 keywords that were searched for a lot but had very little competition and to some people the site had a huge potential for revenue from Google AdSense, CPA offers and private advertising.
The website itself is a basic WordPress site, the hosting only needed to be basic due to the amount of stuff on the site. For the cost of £40 $60 the site sold for $2,200. Now doesn’t that sound a lot better and a lot less riskier? Even if you only managed to sell the site for £100 you have still earned £60 profit from a little outlay. There is no reason why you cannot make a lot more than £60 on a site from a years part time work.
Put it this way, you can risk losing it all developing property for profits that are far less than the amount you borrowed or risk the price of a meal or two over a year and at worse get your investment back. Imagine having several sites being developed over a year. Creating opt-in forms and building email lists with email newsletters set up to go out each week.
With so many people wanting to become internet marketers, or have some form of online affiliate marketing business, creating sites with a years worth of posts and email newsletters, opt-in forms and squeeze pages could be worth a quite a bit to many.
For a newbie who has no idea how to create a website or an email newsletter, creating one for them with a years worth of content will save them a lot of time and work, would that not be worth a lot to people? They can get on with sending traffic to the site and building a business with ease.
All the extra work you can do, all the money you can generate each month adds value to your site. The work is little and nothing compared to the hard work that is involved in developing bricks and mortar properties.
You could go the usual route of setting up an offline business where you rent a property like a shop, pay for business rates, utility bills, stock and staff before you have even had anyone through the door. You might be lucky and double the cost of the items you sell but usually you will only make a small mark up on the things you sell.
Now doesn’t investing just a few hundred pounds or dollars a year with a potential return of thousands sound a lot better?