Please critique my online business model

13 replies
Hi everyone,

I am an offline business owner and salesperson with good capital to invest into profit-generating websites.

I sell web design and SEO and have good knowledge of how to rank sites, gain subscribers, drip feed content/affiliate marketing etc however, I've never made any decent amount of money MYSELF doing this as I always gave up before seeing results.

My plan is to buy websites which are producing revenue already and then add content, improve ranking, design conversions etc then use the profit of that site to scale the operation higher.

As the business gets bigger, my plan is to sell off the initial smaller sites off which will hopefully have appreciated in value to buy more expensive sites that produce a higher revenue.

The strategy is to continuously scale up the amount of websites and selling them to get more sites. Instead of having 1000 sites producing $300 each, the end goal of this strategy is to have 100 sites producing $3,000 each.

Are there any companies which do this? Are there any case studies? What do you think of this model?
#business #critique #model #online
  • Profile picture of the author webmonopoly
    How are you going to maintain 100 sites and keep them all the top producing nice income, thats like owning 100 corner stores in the offline world.
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    • Profile picture of the author PanteraIM
      Originally Posted by webmonopoly View Post

      How are you going to maintain 100 sites and keep them all the top producing nice income, thats like owning 100 corner stores in the offline world.
      I wouldn't say they're the same.

      Outsourcing the content, SEO, operations costs a fraction of the total revenue each site would bring in each month.
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  • Profile picture of the author clever7
    This is a risky plan. I’m not an expert but I read that you have to do a lot to keep making money from a website that is making money; nobody would sell it if it worked on autopilot.

    This means that you may have to spend on Adwords and other traffic generating methods, and perhaps after spending a lot you may realize that your profits are insignificant. You should be careful and first of all verify what you will have to do to make each site keep giving you money, or give you more money.
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  • Profile picture of the author ReferralCandy
    Sounds risky and unmanageable to me, but perhaps you know what you're doing. Sounds awfully tedious. The concept makes sense but the execution sounds frighteningly laborious. I can't imagine trusting other people with stuff like that. But perhaps that's where your competitive advantage lies!

    My intuition tells me that it's going to be really hard to increase the revenues of sites, because to do that you're going to have to really understand every business very well- or you're going to have to manage huge amounts of trial-and-error.

    Good luck! Let us know how it goes.
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  • Profile picture of the author MouseandMice
    I personally think you should do more research in to this before you take the plunge.

    Good luck.
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    • Profile picture of the author Caroline Balinska
      Originally Posted by MouseandMice View Post

      I personally think you should do more research in to this before you take the plunge.

      Good luck.
      I agree with MouseandMice.
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  • Profile picture of the author SurrealPSD
    Just running one website is crazy tough.. I don't think this is the greatest idea..

    How much value do you think a website that receives 1/100th of your focus will bring to the world?
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  • Profile picture of the author ninjawarrior
    Who doesn't want at least one website making that much money? Just the business model itself of having 100 sites generating $3000 a month seems to be good to me.

    What I cannot fathom is: how are you going to get there?

    Are you going to start by buying ONE website that's already making regular money, then grow that site so that it gets to $3K/month then move on to finding the next site to buy, buy that, then do the same all over again, and so on and so on?

    My first reaction to your business model was that it might be somewhat naive, with the idea of being able to squeeze at least $3K/month from one site and use merely a fraction of that to keep it churning that much moolah. But then again, you might have actual superior knowledge and experience in that area that everybody else can refute but cannot duplicate.

    If so, then I say to you to just go for it.

    Then tell me all about what you did so I can take notes and learn from you.
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  • Profile picture of the author Marketing Fool
    It's a good strategy...except that you're probably going to rely on organic search traffic quite a bit (I'm guessing) because to do marketing and promotion for 100 sites by hand is going to be impossible without staff to help.

    The problem is, Google will change their algorithm tomorrow and those sites that were making $3,000 a month will drop to literally $zero....overnight...without warning. And there's nothing you can do to turn it around after it's happened.

    So it's a risky venture, to be sure...
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  • Profile picture of the author seonutshell
    Really good idea mate. You can make a lot of money from this if your days of giving up after not seeing money is over.

    Good thing is you have capital, so you can start big and get bigger.Will you be keeping any sites for yourself or just flipping lots of sites and repeating? For adding traffic and ranking to a site i would suggest buying some software and adding a tiered linking campaign to each site, regardless of whether or not hey have one already.

    If its an adsnse site, quickly outsource some HQ content to the site and add pages, and build some backlinks to them. People always buy sits making money, so if you can get one thats already making money and make more, its a solid plan.
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  • Profile picture of the author SARahman
    Yes there are so many companies running a lot of websites and making plenty of US dollars, e.g. axact.com.

    Axact is a service provider by default, just like you are planning, they offer web design and SEO services.

    But they also buy and sell domains and web properties they curated for a decade.

    There is nothing wrong in this business model. Which business model has zero risk of possible loss? If there is no risk then there is no kosher business, as per religions.

    Adios,
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  • Profile picture of the author Gambino
    Disclaimer: I don't deal with affiliate marketing. However..

    Your business model is similar to mine as far as purchasing per-established businesses (granted, my last two sites have been built from scratch). That said, I think 100 websites will prove to be too many to handle. Even if you are outsourcing the work - you still have to manage the work, and the employees.

    I would modify your strategy to focus on 10ish websites. Then I would budget accordingly. I'd suggest starting with purchasing ONE pre-established site, improving it and scaling it up. Once you're able to outsource most of the work on that one, get started on the next. For me personally, it's quicker and more efficient to actually work on one or two projects and oversee the management of seven or eight.

    Always keep an eye out for established sites that fit your business model. When you find one that's better than the worst one in your portfolio, buy it and sell one. I view it like the stock market in terms of buying low, selling high, and creating the most profitable portfolio possible.
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