What’s Your Online Business Worth?
How much is your online real estate business “really” worth?
Paying attention to the value of your online business is important. Is your website worth money? Do you have a website? How can you figure out how much it is worth? More importantly, how can you increase its value?
Most real estate investors focus on bricks and mortar. Most see their websites and online activities as an extension of their marketing. They could be missing out on a lot of wealth building.
Why Building Value Online is so Important
Ignoring the value of an online real estate platform is essentially throwing away money. You will be missing out on too many opportunities if you neglect to optimize your online presence.
Digital Exits conducted a study of over 250 sales of businesses. They reported that internet businesses are selling for more than offline companies. Online companies and real estate websites can have tremendous value. Better yet, they can be an easy way to increase income and build wealth almost passively. That means a considerable ROI on the resources invested in online traffic or revenue.
A website and real estate blog can generate income by itself and become a great revenue source that compliments bricks and mortar transactions. Internet income can be invaluable for helping industry professionals and investors stay solvent and profitable when the unexpected happens. (that’s why I would love for you to share this thought with a friend)
It also provides a parachute for the day we finally get out of the business. Because you we are potentially adding six or seven-figure assets which can be sold off or even leveraged. Additional streams become even more critical when we talk about to leaving an inheritance. For a variety of reasons, many heirs may not want to manage a real estate business, even if it is well automated.
What Makes an Online Real Estate Business Valuable?
One common model is the comparable sales method. The multiple income approaches can help measure the worth of an online company, similar to the way stocks and investment properties are analyzed
The Digital Exits’ reported, the average sale price of an internet company for the two years up to 2017 was $574,725.
However, there are other factors to take into consideration, each of which can increase or decrease the attractiveness of a web asset and the price willing to be paid for it.
My personal experience is in selling brick and mortar, franchising and currently growing True Loyalty’s internet presence – Check it out at True Loyalty Blog and Get amazing RE tips and info at Real Estate w/ Ernest Blog
Back to the facts – survey shows a significant difference in the types of revenue models. For example; e-commerce sites came out on top versus lead generation sites at the bottom, wieth apps in the middle.
The most significant factor is an established track record. Next is operation complexity. Is this a turnkey operation?? Can it be run in a couple of hours of management time a month? Will it require extensive business and technical knowledge to be relevant for someone else?
Finally, uniqueness matters! Can your site be replicated for a few hundred dollars? Is it unique with a brand position that was built from the ground up?
How to Make Your Online Real Estate Business More Valuable in 2018?
- Build income – (Drive Traffic)
- Streamline operations – (Document Everything)
- Build a strong brand – (Consistency)
- Diversify income sources – (Affiliate Marketing)
- Keep excellent records – (Google Analytics)
- Stay ahead of coming e-commerce pivots – (Study the industry)
I am sharing what I am learning. I firmly believe the things we share weekly help us. If even one person finds it beneficial, I have done what I set out to do. Because of that, please me know your thoughts, comments – what is working for you? Would love your feedback, and if you are currently running an online business outside or real estate, please chime in.
Have a blessed day and thanks for reading.
Ernest