Last Updated: July 17, 2021.
The moment you hear the term real estate, you immediately visualize built property. Not to mention the millions-of-dollars perspective that hits your mind.
Many entrepreneurs have ventured into real estate and made a significant amount of money. But there’s no denying that a good number of them have also lost huge sums of money.
So, if you don’t have the millions to invest in conventional real estate or you’re skeptical of the ROI (return on investment) of this business, perhaps you could shift your focus to digital real estate.
Read below for a deeper insight into this emerging trend among entrepreneurs.
What Is Digital Real Estate?
Simply put, digital real estate is an online commodity that you can invest in and expect profits. Good examples are:
- Mobile apps
- E-commerce stores
- Digital products, like eBooks and courses
All these options have good returns, as well as their respective pros and cons. You can choose whichever you want and pursue it with all your energy. Eventually, you’ll reap from your sweat.
However, if you were to ask experts about the easiest yet most profitable options, they’d tell you to stick with buying domains and building websites. If you’re curious to know why this is so, visit website and get filled in on all the details.
Advantages of Digital Real Estate
From the look of things, digital real estate might be easier yet more rewarding than traditional real estate.
Here are some of the arguments to support this notion:
Low Capital Outlay
Suppose you’re building a website from scratch. The only mandatory purchases you need to make are:
- Web hosting for as little as USD$ 5 per month
- Domain name for about USD$ 10 per year
That’s if you’ll do all the work all by yourself. But if you’re looking to enlist the help of experts, you’ll need to pay a web designer and content writer. Also, you may need to invest in the following tools:
- Keyword research tools
- Grammar checkers
- Software for building email lists
- SEO advisers
- Image editors
- Social media management tools
All these expenses total to way less than USD$1,000 per month. In comparison to traditional real estate, this figure is but a drop in the ocean. For instance, to purchase a 3-bedroom house, you may need more than USD$200,000.
Hire Profit Margins
By diligently working on your website, you can start raking in thousands of dollars monthly in just a year after your kick-off. Perhaps you may not get to the league of the exceptionally profitable ones that earn about USD$1,000 every second. But it isn’t rocket science to make between USD$10,000 and 50,000 per month.
Compare this to your initial investment, and you’ll understand what’s meant by a higher profit margin. Getting such returns from, say, a USD$ 200/month investment is quite a great deal. That’s a profit margin of more than 90%.
Do note that it’s difficult to register such profits for most businesses out there. Traditional real estate generates about 6 to 8 % profits per annum.
Suppose something terrible happens, and you lose your website after five months of hard work. If your monthly budget was USD$ 200, you’ll have lost only USD$ 1,000. That might be insignificant to you, depending on your income level.
But for traditional real estate, if you close a deal with fraudulent sellers, you’re staring at hundreds of thousands of dollars going down the drain.
Once your website is up and running, your upward potential knows no bounds. Remember, there are currently 4.66 billion active internet users worldwide. Every one of these is a potential visitor to your website.
Yet that’s not all. The remaining 3.24 billion people will sooner or later start using the internet, some of which may be your potential customers.
Thus, you can reach as many people as you wish. Your earnings grow as your online audience becomes bigger. That’s not the case with other investment options like traditional real estate.
Only one family can inhabit a given unit of your rental property. There’s no way you can amass property to accommodate thousands of customers. Worse, you’re limited to a specific geographical region. For digital real estate, you operate globally.
Moreover, there’s no legal limit on the number of websites, blogs, apps, and e-commerce stores you can own and operate. As long as you have the capacity, you can try your luck on as many digital assets as possible.
For instance, you can register and flip thousands of domains as long as no one registered them before you. Another good thing is that all the digital real estate options are viable, provided you put in the effort.
In A Nutshell
You can’t underestimate the potential of digital real estate. Those who got in earlier and mastered their craft are now filthy rich. But it’s never too late.
One or two years down the line, you’ll be a force to reckon with. So, if this convinces you, get the relevant education and embark on your journey to riches. For indeed, digital real estate is the future of investing.