Introduction TO DIGITAL REAL ESTATE
Simply put, digital real estate is what we call "virtual property" and it comes in many different forms.
Unlike a physical house, the appreciation value often quintuples over time. Even in as short of a period as one year.
Imagine owning a home you live in that pays you money? Well, with digital real estate that's possible. Eliminate the need for finding "good renters" for your home or fixing up leaking pipes. Now your new "renters" (website traffic) pay you each time they visit your new "home."
Additionally, just like physical real estate investments, digital real estate's worth appreciates, rather than depreciate over time.
Understanding the concept of the value of digital real estate is simple. In fact, we created this comprehensive article explaining the huge shift occurring in the digital and investment world today.
Keep reading to find out more about the power of digital real estate.
Digital Real Estate - Welcome to A New Era of Investing
Digital Real Estate - A Massive Investment Opportunity
What is Digital Real Estate?
Today, many experienced investors invest in digital real estate due to offering stable recession-proof cash flow. In California's Silicon Valley, the number one driving market is technology and Internet Entrepreneurship. Savvy investors in the 21st century buy a digital asset. This is because they know the value of the asset increases over time. The market of digital real estate is lucrative.
For example, the social media application Snapchat received an offer for 30 billion. With “real world” real estate deals, speculating on the value of the physical property is historically a gamble. It is also very dependant on the current fluctuating housing market.
On the other hand, digital real estate is more stable in it's valuation like a business. Additionally, unlike a physical business digital real estate requires very little overhead often achieving gross margins of 60-89%.
If you're thinking about tapping into this emerging digital market, well, now is the time to invest. Unlike most other markets, like the stock market, cryptocurrency, or bitcoin, investing in digital real estate has a lot less risks. But has great rewards if you know how to do it right.
What is Digital Real Estate - Real World Examples
Everyone's familiar with real estate investments - house and lots, condominiums, raw lands, even purchasing a franchise such as Starbucks. It's as simple as buying a house or land to rent or sell for profit. Digital real estate works the same way. You purchase or develop a digital asset, monetize it, and eventually sell it for a profit.
Here are a few concrete examples of digital real estate.
Websites
The classic concept of digital real estate, investing in websites yields great returns. Unlike physical real estate, the money is in the sale. Through advertising, or product sales website monetization is a simple no-brainer way of making money online.
Smartphone Apps
Apple iOS or Android smartphone applications offer investors excellent opportunities for residual and passive income. Product launch and offer "in-game" purchases further increase the Return on Investment.
e-Commerce Stores
Amazon FBA, Physical Product Stores, etc. Endless possibilities in the digital world. If you dream it, you can do it. It's really that simple.
Design a product, launch it on Amazon, and no more inventory hassles. Gotta love the 21st Century!
Intellectual Property, Blogs, Craft Artists
Are you creative? Do you have an idea you think could be valuable? The abundance of bloggers, craft artists, and innovators earning millions per year on the Internet should tell you that if you can dream it, you can achieve it.
DIGITAL PRODUCTS
Another great example of digital real estate is digital products like e-books or online courses.
You'll need to spend time, effort, and money at first in order to create these digital products. But you'll only need to do it once and your profit will continuously flow (that's if it's marketed well and if the product has a demand).
What is Digital Real Estate Really Worth?
The value of an online business will vary but the sky really is the limit. We've monetized sites via Google AdSense that generate $400-$1000 days. As well as e-commerce and affiliate sites earning $700-$2000 per day. It all depends on the techniques involved.
While the digital real estate is highly lucrative, the value of each individual property depends on a couple factors including desirability, stability, and revenue.
Type of digital real estate
As discussed above, digital real estate includes all online properties from domains, developed websites, smart phone apps, intellectual property and digital products. The value of these can vary depending on how desirable the name or product is and how developed the asset is. We talk more about domains and the most valuable extensions below.
Niche or industry
Some industries are considered more desirable due to their popularity, or the amount of users looking for information and products in that niche. However, this is not always the case as even small industries have highly profiting websites.
Monetization method
There are many ways to monetize digital real estate as briefly discussed above. No way is better than another. But some methods are more applicable to a specific niche. Utilizing a monetization methods that converts well with an audience is the key. Domain monetization is simple and happens through a variety of methods that we'll happily teach you in our Business Education program.
Traffic and revenue
Just like a physical business or a rental property, the amount of visitors and the revenue generated is one of the biggest factors in determining the value of digital real estate. However, even a digital property that has very low or no revenue can be valuable based on other factors such as a highly desirable domain name.
Historics or Potential
Longevity and stability. A business that has a longer history of success is more valuable. But even a start up with a really good product idea is valuable for its potential.
What are Domains?
Domains are the most common example given when discussing what is digital real estate. So, let’s talk about what domains are and how they function as pieces of digital real estate.
Domains are websites you visit on a daily basis, every day there are BILLIONS of users surfing the Internet from around the world. And this is done 24 hours a day, 7 days a week, 365 days a year.
When people use the term “domain”, they’re typically talking about a domain name. This is a string of characters that designate a website’s location online.
For example, Apple.com is a domain that is definitely an impressive piece of digital real estate. This is because it’s the virtual home of the blue-chip electronics and multimedia company. It produces electronic and technological goods for people around the entire planet, including the iPhone.
These domains such as "Apple.com, Google.com, Mashable.com" are all domains that have millions of visitors coming to them in a variety of ways.
What Domain Extension is the more valuable?
Investing in digital real estate requires some research. This ensures you make a good purchase decision.
One hard-and-fast rule is that domain names with the very-familiar (dot.com) extensions tend to be the most desirable. Those with .org or .net, etc., are considered second choices for most people. Dot.com domains are comfortable for consumers and this is what drives the prices of these types of domain names higher.
This is something to consider when pondering the question, “What is (domain-based) digital real estate worth?”. However, .com extensions definitely aren’t the only investment opportunity in this gold vein. Picking a domain extension that best fits your business or audience is key.
What are the Requirements for Digital Real Estate?
Just like any business, you need the technical know-how of the business to succeed.
For digital real estate, you'll need advanced technical knowledge and a lot of experience to grow a successful online business. But more importantly, you'll need to put in time and effort in order to see results.
Here are some of the technical requirements, skills, and knowledge to learn in order to grow an online real estate asset:
- Soft Skills:
- Knowledge of at least one content management system
- Digital marketing skills
- Content writing skills
- Social Media marketing
- SEO skills
- Technicall Requirements:
- Personal computer
- Steady power supply
- Internet connection
2 Misconceptions about digital real estate
While the above skills are required for a successful online business, there are two common misconceptions.
First, that you need all of these skills before ever getting started in digital real estate. And that if you don't have them you can't invest. This is a misconception because you can LEARN these skills.
Whether through courses such as our Business Education program or through trial and error. The best way to learn these skills is through experience. And the only way you gain experience and knowledge is by study and doing.
Second, that you need all these skills and know everything yourself. This is a huge misconception because you can leverage other peoples knowledge and time.
You can hire companies like Sirius Design Group or freelancers to manage all or parts of your business from content writing to social media marketing and even SEO.
Be a Business Owner through digital real estate
Digital Real Estate gives you the ability to own your own business and work from anywhere. What could be more satisfying, and fulfilling?
Do you want more time freedom to work from home? To spend more time doing the things you love in your life or with your family? What about having more money to do those things?
Business ownership through digital assets provides the flexibility to work from home or while you still work your main career.
How to sell your online business
Selling your online business or digital real estate can range anywhere from a couple hundred bucks right up to double-digit Billions! (Google Buys Facebook For $25B).
If you grow your online business and decide you want to sell it, there are many platforms you can use to do so including our Marketplace. Contact us for a free revaluation of your business.
Tips for selling domain names
In terms of the more creative part of a domain name (such as the “Apple” in Apple.com), it’s all about predicting what people will want to buy. To cite an example, young singer Taylor Swift bought up domain names which included her own name and .porn and .adult gTLDs.
gTLDs are a new crop of domain extensions that may be purchased before they are actually usable online. In almost all cases, these “custom” extensions, which have novelty value and rarity value, are very pricey indeed. Swift’s goal was to keep others from opening adult websites that might feature photoshopped (i.e. fake) images of her.
Those who sold these domains to Swift profited (greatly). Additionally, while they aren’t the most ethical examples, they do illustrate the way that “flippers” can capitalize on domain names.
What is Niche Flipping?
We use the term "niche flipping" because many times we take a "junk (expired) domain" then fix it up, monetize it, grow it, and profit from it. Just like flipping a piece of real estate, digital real estate flipping is a great way to earn money. Additionally, it can be a great investment as well.
This is a wonderful method of turning someone else's dumped domain and turn it into a gold mine.
It’s about anticipating what will be in demand, offering a good product, content, or a solution. Then, the money will come rolling.
Is Digital Marketing Important for Digital Real Estate Business?
Digital marketing revolves heavily around content. As they say, content is king.
So, this is why what you need most in your digital real estate business is CONTENT. Content helps you get your message out in the metaverse to make your business more visible to your target audience. Without content, you won't be able to get more traffic to your website or online platforms.
Content is how you connect to your audience and engage them, both on your website and social media platforms. Whether it's informational content or promotional for your products and service, content is the best way to speak directly to your visitors.
Therefore, digital marketing and content marketing are pretty important for your digital real estate business.
Here are a few ways to do digital marketing to reach your audience for your online real estate investment:
- Paid Search Advertising
- Search Engine Optimization (SEO)
- Paid Social Media Advertising
- Content Marketing
- Affiliate Marketing
- Social Media Marketing
Internet Retail in the 21st Century
e-Commerce typically consists of virtual storefronts, where visitors may buy goods or services which are then delivered to them digitally or in the “real world." In fact, the abundance of opportunities available to Internet Entrepreneurs allows them the leverage of time/money.
Additionally, when a virtual storefront gains traction with consumers aka visitors/traffic, it becomes increasingly valuable by the day. At this point, the owner of the e-commerce website (or the creator of an e-commerce web design template) may want to entertain offers from prospective buyers by selling it.
Digital Real Estate is an extremely sound investment opportunity. This is due to it offering stable cash flow, security and flexibility, ease of operation, and much more. In 2025 and beyond, e-Commerce retail transactions are expected to climb to 51%. This exceeds physical storefront transactions.
Ultimately, the future is digital, and now is the best time to jump on board.
How to Get Started Investing in Online Real Estate
So, with all that said, here are some steps that you can take to start your online real estate investment journey.
- Build Digital Real Estate
- Create a website
- Start a blog
- Build an e-commerce website
- Open social media platforms (Facebook Page, Instagram, Pinterest, LinkedIn)
- Create content for your platforms
- Purchase Digital Real Estate
- Purchase a start up website and make it profitable
- Invest and purchase an established online business
Final Words: Why Online Real Estate is Worth It
In conclusion, investing in online real estate is a smart move, especially in the 21st century. Here are the reasons why:
- First, it's Accessible – It is accessible because anyone can buy it. With hundreds of thousands of websites for sale, you can take your pick to buy a website, fix it up, and sell it. There are also endless ideas for designing new websites and products.
- It's Appreciable – It increases in value over time. Unlike the stock market, online real estate doesn't have a fluctuating growth. Its worth is sure to increase over time.
- Third, it's Rentable – You can lease an internet property out to get income and returns such as selling ad space on your blog.
- Lastly, it's Improvable – Online real estates can be improved over time and can be sold for a bigger profIt.