Say the word investment and your mind automatically jumps to the stock market, but there’s a strong case for investing in digital assets that shouldn’t be overlooked.
Since Investors Club specializes in revenue-generating content sites, we’re going to make websites the focus of this guide but digital assets can mean many things from websites to cryptocurrencies.
If you’re considering buying a digital asset, here are 5 reasons to seize the opportunity.
Note: Digital assets can come in many forms. In this article, we are referring to an online business. This in itself can take many forms. But in this instance, we will be referring to mainly authority content sites that are largely monetized by display advertising, affiliate marketing or e-commerce.
Investing in any asset whether that’s stocks and bonds, property, crypto or even digital assets carries with it a degree of risk. Unlike the other investment options though, owning a digital asset puts you in control.
Rather than relying on a stock having a good quarter, leadership decisions outside of your control, tenants paying rent (or not), or coins maintaining value, the success of a digital asset is largely down to you.
Obviously, to generate revenue you’re going to need page traffic but by applying some time, skill, and technical knowledge (or outsourcing to a management team) this is much more reliable than just hoping that GameStop picks up again.
For many investors, owning a digital asset can mean freedom from a traditional nine-to-five.
By investing in a digital asset you are able to take ownership of your future and earn money your own way.
It gives you the time needed to pursue other passions knowing there’s a regular income to fall back on if needed, or the opportunity to travel the world while working just a few hours a week.
Having a revenue stream that requires very little management does wonders for your work-life balance.
Many investors choose to own multiple sites in niches they’re passionate about, so the work they are required to do maintaining a site is work they’re excited about.
3. Passive Income
Speaking of low maintenance, the passive income from a digital asset is another compelling argument for buying a website.
For those looking to boost their monthly income without the overtime hours, a website that earns money for you is a lot easier than a paycheque!
Each of our listings comes with a workload analysis so you can see how passive a site is before you buy. While it’s never going to be as passive as dropping money into an index fund every month, many of our sites require under 10 hours of attention a week.
For truly passive income, our full website management service, Buzz Logic can grow your site for you and offers significant growth in just two months.*
*not guaranteed although the experience of many of our customers
4. Risk Mitigation
Buying an established website vs building one yourself helps to mitigate the risks associated with starting a business.
9 out of 10 start-ups fail so anything you can do to beat those odds is going to help with any entrepreneurial aspirations you might have.
Buying a business that’s already making a profit means your investment starts to pay off from day one. There’s no breakeven period to go through and you’re saving time and money by skipping the start-up phase.
Just like saving that first $100k is the hardest, getting those first 10,000 visitors (often the lowest minimum traffic requirement for ad networks) is tough. Buying a digital asset that’s already reached this benchmark removes the risk that your time and effort will go unrewarded.
Investors Club offers the most detailed due diligence reports available for every one of our exclusive listings.
With our 24 point reports, you can see a complete picture of a site, including financial and traffic health to help take the risk out of website investing.
5. Portfolio Diversification
As any shrewd investor knows, it’s a bad idea to put all your eggs in one basket, or rather all your money in one investment.
Buying a digital asset is a great way to diversify your existing portfolio, expose you to a new area, and generate some regular income alongside other investments (where growth may be the main focus rather than income).
Gone are the days where stocks and bonds make up 100% of a person’s portfolio. Websites and other digital assets are the new hot commodity and over the last year, we’ve seen an increasing number of investors and even Private Equity firms cashing in on the growing space.
Website investing offers easier and higher returns compared to other more traditional options. Typically you can expect to see between 30-60% annualized returns on growing sites.
If you still need convincing on whether buying a digital asset is a good idea, how about this? Investors Club offers buyers a fee-free way to acquire profitable websites and takes care of the legal documents and transfer process for you so all you need to do is find the site.
New sites are added to our exclusive members-only marketplace every week so there’s never been a better time to start investing.
Hannah is a content marketing specialist at Investors Club and a freelance copywriter. When she's not busy behind the keyboard, you'll find her baking her signature salted caramel brownies or trying to sink that elusive hole-in-one.