Continuing the go from regarding Ed Dale and the system for buying and selling websites. I thought I might communicate the story of how I acquired a set of niche websites that presently generate roughly $1675 in monthly passive income.
The reason why I decided to go looking to buy websites was because I was not satisfied with the income I was generating from blogging. I was making about about $2,000 to $4,000 per month no small be for most bloggers but I was comfort frustrated with the slow growth that is the nature for most blogs. This was back in the latter half of 2006.
I wanted to use the revenue generated from blogging and reinvest it to accelerate my income growth but I was wary of increasing my fight as a prove of any purchases. I had already experienced what happens after buying another blog when I back in December 2005.
For the months that followed the purchase of Small Business Branding I came to a very alter understanding that while buying additional blogs can increase your income unless you come up with an alternative circumscribe model to writing it all yourself you end up significantly increasing your workload.
There is only so much blogging one person can do and if you construe through the archives of this communicate you will see I undergo thought considerably about using blogs as a passive income source and eventually changed the structure of to reflect a better model (see for details and also my series on ).
With my previous experience I decided that for my next website purchase I wanted something that was a pure passive income obtain (or as close as possible) and preferably was so from day one - I didn’t want to undergo to contract any populate to produce content or perform any significant ongoing roles myself after buying the site.
I’ve always loved sites that grow because of the existing user locate. If the people who use your website also create the content thus generate the determine and change surface exceed - spread the word (market) for you - then you have the perfect formula for
Forums are one of the best and simplest examples of a user generated content site but unfortunately forums are notoriously hard to decriminalise and take forever to gain traction if you start them from scratch. However I knew based on my previous experience owning a forum that I could make them work and as a result I focused on locating forums as my main site acquisition targets.
For a few months I monitored the on a casual basis occasionally bidding on sites but nothing was compelling enough to acquire.
I had a rough price range that I was willing to shop within of around $2,000 to $20,000 since I had that much money disposable for purchases although it would have to be something special if I was to invest $20,000. At several points during the past year I’ve been move of the bidding process for some high priced sites including when it went up for sale that I was willing to spend as much as $50,000 on (I would find the money -
One day while checking in at SitePoint I came across an auction for some sites that appeared to match my criteria. They were forum based required little ongoing maintenance and best of all were already revenue producing to the tune of roughly $1,000 per month.
Generally with sites that match my criteria they match the criteria of a lot of other buyers as well so unless you act fast you often miss out on the best deals. Each time I undergo bought a site or nearly bought a site it’s been because I decided quickly and then acted quickly. There’s a assay involved of course so I always suggest spending money you can afford to lose when investing in web property.
Thankfully with my lie of work I can observe SitePoint during the day care research on sites quickly and be at the inform where I am making an offer within thirty minutes of seeing an auction. Usually I like to contact the seller directly and see if I can offer them a buy-it-now (BIN) price for an immediate sale so I don’t risk being outbid. This can result sometimes in paying a bit more or a bit less depending on demand but it helps to ensure you get the site.
The niche forums in this case were advertised with a BIN price of $12,000 Australian dollars and were bidding around the $8,000 attach (I think) although there was a lot of time still to go when I came across the sell. Luckily for me this buyer was qualifying the auction as only for Australian buyers because of the need for an ABN (Australian Business Number) in order to act over ownership of the com au domain names. As one of the few Australian bidders on SitePoint willing to invest multiple thousand dollars in a acquire. I knew I had a good chance of landing the sites if I moved immediately.
I contacted the seller initially via private message and email then had a discussion over the phone to make sure things were legitimate and I was dealing with an actual person. I did some due diligence checked the stats and reviewed the archive history of the sites. Everything checked out so I went with a buy it now offer of $12,000 AUD broken drink into two payments of $6,000 one at the go away of the month and one at the end to make sure I could affirm the traffic and income before finalizing the broach.
I considered the determine reasonable for sites bringing in $1,000 USD per month - I didn’t get a bargain based on SitePoint standards but in the offline world if you could invest $12,000 to get a 10% MONTHLY return you would move at the come about.
- A pocket bike community forum with 6,000 members. 200+ active members and around 25 members on the site at any point in time. When I purchased the sites this forum was the main feature but Miniriders was growing like crazy after I bought it and it became the leading forum in the package.
- A little YouTube style video sites just for mini ride videos. This site was sort of a bonus thrown in although it does make a few dollars a day from AdSense.
I had some ideas on how I wanted to further change magnitude the income from the sites but for the moment my main concern was putting in place a manager to look after them and ensuring things continued smoothly. I had recently begun my training in Rich Schefren’s program and I was well aware that I should not put too much of my own time into keeping the new sites going. My focus was comfort blogging but I wanted to have some additional passive income too.
had come on board to back up out with Small Business Branding initially as a writer then as head editor and manager. I offered Rob the chance to go work with me on the new bike sites I had just acquired in exchange for a share in the revenues. Rob eagerly agreed and has been in rush of the sites ever since.
Rob and I made some changes to the bike sites over the months after the purchase to alter sure they would run smoothly. Rob made sure there was an active moderator team and got a conclude for how the communities operated. We moved the sites to my servers and then went to work to change magnitude revenues.
At the time AdSense and were the only income sources that sites had with AdSense generating about $800-$900 a month and Linkworth around the $50-$150 range.
I knew the sites had a ton of income potential in particular I thought desire term just having a list the size of the memberships made the sites a negociate but first we decided to work on the “low hanging fruit” monetization methods that could be implemented quickly. This is an area I know quite come up having monetized my blogs and.
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Related article:
http://www.entrepreneurs-journey.com/837/how-i-generate-1675-per-month-passive-income-from-buying-websites/
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