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Buying websites = buying income? Ala Monopoly?

by rickalek
4 replies
Hi all.

Given everything I've read about most ad/affiliate-based website valuations vs. income being so low (12-20 months trailing earnings), I've been considering buying my way into the business. I know there's risk to buying any business, and you have to learn how to value a site etc but it sure looks attractive:

-buy a $6000 website generating $500/month
-bank the earnings and buy another $5000 site a year later (now earning $1000/month)
-bank and buy another site at 18 months (now earning $1500/month)
-bank and another at 20 months (now earning $2000/month)

Continue until you've acquired enou income to live on.

It's like playing Monopoly - trade in your houses for hotels.

Anyone successfully doing this?
#ala #buying #income #monopoly #websites
  • Profile picture of the author Mike Hlatky
    This is exactly what I do to make money.

    I spent about a year making tons of websites from scratch that generated less than $1000. Then, the light bulb went off.

    Why not let someone else do the work and then just make the website better?

    I bought my first website for $800 and turned that into $13,000 in revenue and $2,000 for the sale of the site.

    I haven't looked back since.

    There are two things that are going to make you successful using this method:
    1. Weeding out all the crappy sites. There are a ton of terrible/cookie cutter sites on Flippa, WF, etc. You just need to block those and look for the steals. And believe me, there are plenty of them.

    2. Don't get ahead of yourself. When I first started doing this method, I just kept buying and buying. I needed to tell myself to slow down and just concentrate on sites that I already have.

    Good luck!
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    • Profile picture of the author rickalek
      One question- did you just go prospecting thru google etc to find sites to buy then contact owners cold? What was your approach?
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      • Profile picture of the author Mike Hlatky
        Originally Posted by rickalek View Post

        One question- did you just go prospecting thru google etc to find sites to buy then contact owners cold? What was your approach?
        I mainly use Flippa and the Warrior Forum.
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  • Profile picture of the author rickalek
    Excellent info thanks. I think the key is to start think &. Acting more like Warren Buffett that Steve Jobs. Buffett didnt "startup" anything - just became a professional income buyer.
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