Table of Content
Reasons why website investors don’t succeed
Understanding website investment with the game of chess
Strategies in making your website a passive income machine
The benefits of website investment
INTRODUCTION
The government lockdown imposed in response to the coronavirus pandemic, is an eye opener that a passive income can be a great supplement of income for many people. Website investment for passive income makes money to flow even when you are asleep in your king size bed in your five star home or in a five star hotel somewhere around the globe.
The big question is, what can you do to have your money keep flowing in. The answer is interest. You need to be interested in the internet, interested in the business of the internet and the structures of the internet. You will be willing to work on the computer and you must be a lover of the screen. Then, website investment is certainly for you.
What is website investment?
Buying and owning a website is an investment that might be both satisfying and lucrative. This will help to generate income without you working longer hours and website investment might be the perfect way to achieve this.
Website investment is the process of purchasing, owning, managing and selling a website for profit. A website is purchased with the goal for it to generate income or appreciation.
In an economic sense, website investment is the purchasing of websites that were never income oriented but will be used in the future to create and generate wealth for the owner(s). A website investor always considers the outlays of some assets today (time, money, effort etc) with the hope of a greater payoff in the future than what it was originally used.
For more insight on passive income check this article
Investing in websites for passive income.
How can you earn a passive income using your website?
First, you need to understand that passive income is not earning money by engaging in nothing. Actually, it means you earning money without having to exchange your time for it. Investing in website for passive income may replace the regular income and might even evolve into the normal traditional job, turning you to be your own boss.
There are different ways you can earn passive income, especially by investing smartly in websites in the following ways;
- Affiliate marketing: this is the type of marketing that you promote the products or services of another person or company in order to be paid a commission on the resulting scale.
- Digital downloads such as templates, e-books and printable PDFs.
- Teach you own online course, these might be delivered in several forms, such as a video course may be done through zoom and on social media platforms.
Remember this that your website doesn’t need to depend on only one of the above strategies.
Things to you need to consider before investing in a website
It’s important you note that website investment will require upfront investment. I call this MAT;
M – Money
A – Audience
T – Time
Money: The monetary investment on your website will strictly depend on your skills and abilities. For instance, if you’re are not a copywriter, you will certainly hire someone that will copywrite for your website.
Audience: Build an audience that will turn into loyal customers and this will include web visitors, an email list and social media followers.
Time: You’ll have to design and create products, services and marketing campaigns and automate check out processes too for website.
There is a need for you to understand that life is full of risks and it is even more risky when you refuse to take any risk. There a lot of things, you need to know and understand from a risk view point before you even think of venturing into website investment or any kind of investment.
- For me, human beings are classified into three groups; the good, the bad and the ugly. Internet fraud will certainly happen. But you need to take your time to verify every thing and be sure of all the information.
- Change is the only thing that is constant. Things will certainly change with traffic sources. Any time, Google (or even your favorite social media site) might decide to change their algorithm for posting. This could drop your revenue significantly overnight. This is certainly out of your control. Always evaluate everything appropriately before using it. If this happens, do your best to overcome it.
- Competitors are in every niche. You will need to compete with others that could be targeting your readers away from your website.
Reasons why website investors don’t succeed
There are three reasons why website investment fail. This will make it very difficult to earn passive income for the investor.
Lack of customer focus.
Lack of customer focus might likely make them to feel likely interested to deal with you (or your website). This will certainly affect your products, services and even profits.
Without these customers, your website won’t be able to generate any passive income. Making it impossible to have a repeating custom which is the backbone of many businesses. Repeating custom is different from customers buying the same product or the same customer buying different product that’s offered on your website.
For repeating custom, your website will need to develop and maintain a very good customer relationship and satisfy their needs which will build loyalty in them.
Not building enough credibility and trust.
You need to understand that the hardest things to part ways with in this life is money. This is the more reason why you have to build trust first especially when they have never heard anything about your website before.
When there is trust, the relationship between the website and your customers will grow and it is more sustainable. When there is then an established credibility, your clients and customers will continue to visit your website. Why? They feel connected with your contents, they have seen very resourceful and informative.
Focusing on product features instead of benefits.
The mistake of advertising a product and its features on your website rather than focusing on the product benefits will crash your website, and this will cause your customers to move away and find solutions somewhere else.
Many people fail to understand that the benefits directly relate and speak to the customer needs. While the product features promotes the product itself. Today, there is so much competition in the market, which means there is a wide choice of all the product. Many people fail to understand that benefits are those things that directly relate and speak to the needs of a customer. While the product features will promote the product itself. Today, there is a lot of competition in the market, meaning there is a wide choice for all the products.
You need to understand that the customers don’t really care what your products are, they just want to see “what’s in it for them” and quickly too.
Understanding website investment with the game of chess
Chess is a board game that has existed for years. The game is all about the art of war. The game is all about strategy, tactics and the ability to outsmart your opponent, the final target is to check mate them. Once this happens, the game is automatically over.
The question is, how will the game of chess help you to understand what website investment is about?
Master the rules
First, the need to learn the rules before playing the game. This is also the way it is in investment.
Before you jump into website investment, you will need to understand the dynamics of how things are working, the customer demand, internet regulations and even pricing techniques. Without these, you’re heading to failure.
Understand the players
Just like in the game of chess, you need to understand who your competitors are if you really want to succeed with your investment.
Chess players are known for spending time studying how their opponents thinks. This way, they device counter measures that will enable them to stay ahead, withstand an attack and make counter-attack.
That’s the same thing you will need to do as a website investor. Learn what your competitors are doing. Who are they? What do their websites offer that yours don’t. How will your products and services be much more better than theirs.
Play to win
The ultimate goal is to win in chess. Some players play conservatively. They will hold on to their pieces and even refuse to make any sacrifice.
It’s that way in investment. In order to achieve your goals, you have to be more flexible. Know when to adjust and strategically position your products and services to be able to get the loyalty of the customers.
Don’t rush to make a move, there might be a better one.
In investment, you have to make your choices based on a well researched information. Never make the mistake of jumping into the first option that will look good.
Plan several moves ahead
Chess game players are known to plan their moves and also consider likely responses to the moves they will make.
As an investor, you will need to do this. A good forecast is very important to be able to earn a passive income from your website. Always plan a contingency plan for any situation that might arise.
Manage your resources
To win, learn how to be able to manage your resources. This applies to cash. You will need to make sure you do not overspend. Every dime should be able to earn profit. Meaning that you should not waste your money at anyhow. Your expenses should never exceed your revenue.
Strategies in making your website a passive income machine
As an investor, the major reason why you are investing in a website is to be able to earn passive income with it, then, you need to consider these important tips;
- You will need to invest in a website that has defensible position. This will help you to ensure that the website will be earning passive income in years to come.
- There’s need to carry out a well conducted research to ensure there’s no spammy links, errors or band on the website.
- To be able to minimize your time and maximize your profit.
- Invest in a website that has a very good solid profit margins.
To have more knowledge on passive income investment,
The above considerations will help you to understand the methods to use in order to make your website a passive income machine.
Carve out a niche
As a website investor, who is targeting to earn a passive income with your new purchased website. The most important thing is to be able to carve out a niche for yourself in the market. You need to understand what people are looking for and know how to be able to offer it to them, this will position your website to be frequently used by people who will turn into loyal customers.
There are a lot of businesses online that is generating passive income for people. You will need to tap into any of these online businesses with your website be in the position to provide them easily to your customers. It could be a news site where people read the latest news in town, when people get to know that your website is a site that dishes out the latest and hottest news. They will unconsciously depend on your site for news by frequently visiting it, thereby, generating more traffic that will turn into income.
This way you have gotten their loyalty because you have been able to build trust and credibility, that’s the niche you have already carved out. Then, you will then set up any of the online businesses with your site, they won’t doubt the credibility because of the benefits and satisfaction they have been getting from your website. There are various ways to be able to earn passive income, with your website.
Passive income websites will tend to earn revenue in the following ways;
- Affiliate Marketing
- An eBook
- Resell an Online Product
- Start an Online Course and Sell Membership
- Creat a Website Guide
- Setup a Passivity Exception
Create an email for deal activity
Create an email to sign up for as many newsletters as possible. You need to bear in mind that nothing entices readers more than getting a great deal, that has value.
Offer your audience something that will be very valuable to them that performs the following;
- Catches and holds their attention.
- They become lovers of your brand.
- That will encourage them to buy or even interact with your website (products, services and contents)
Since you have a good product, service or content, you’ve created, offering it to them will be much more easier. As an investor, with the target to earn, you will do this by offering them discounts on your products and services or promoting some of your great contents to them.
Sign up a deal activity newsletter
As a website investor, you will need to sign up with the relevant buying and selling website newsletters, to understand and be informed with the latest in your area.
Here are some of the best platforms.
- Flippa
- Empire Flipper
- FE International
- BizBuySell
Run a valuation and present an offer to the seller
Valuation is a quantitative process to determine the fair value of an asset. As an investor, this will help you to place a great value on the asset, the composition of its capital structure, the prospect of the future earning and the market value of the asset among other things. This will guide you in making an offer to the seller (owner) of the asset which he won’t be able to resist. Probably, you would ask him to sell the asset through you, thereby, earning commission from the sale. You may acquire the asset just to resell to your audience, who are now your loyal customers.
As a website investors, you must never lack websites idea on what to do.
The Benefits of Website Investment
The brief overview of what a website will do for your products and services. This relevant information will tell you what to expect from your website investment.
Hub of your online presence
Research has shown that people search for almost everything on the internet. And your website will serve as the central hub where all searches about your business, products or services will eventually lead your customers to. It is your online presence where you will be able to make that very important first impression with your potential customers. Without a website, people that are looking for you online might encounter some troubles finding more information about you or might even find what they are looking in another site.
Gives your products and services more credibility
People are defrauded daily online and people are getting aware of these bad elements and would be very cautious to deal with entities that do not have any online presence or a even professionally website. You will need to know that running your business on a free website providers might also appear dubious for online costumers.
It is believed that a reputable business should be professional enough to have their domain and hosted site. Websites may also have important information about your business like your history, board of directors, your completed projects and partners. With these they will be more comfortable to do business with you.
Your website gives customers 24/7 access to your products and services
Your website will be there to offer an effective way for your business to have a 24/7 operations that customers will be eager to visit anytime of the day. Many online businesses are conducted 24 hours a day using different automated procedures and online forms. This will include payment services, without even the need of a live person. Inquiries, technical assistance, and customer service work might also be performed using online tools from your site.
It will allow your products and services to compete in both local and global markets
Meaning that your products and services will have the potential to get a larger piece of the global market with your professionally well designed website.
It helps you generate new leads
Being a website investor and owner, you will need to know not all website visitors automatically become your customers, but important marketing leads might be generated from those visits. Using lead capture tools that will you to embed or integrate with your website.
These tools will allow you to be able to get more information and contact details of your visitors, this will enable you to contact them later with information or updates on your products or services. Eventually, the information and value they will get from these subsequent connections might turn them into paying customers.
It will allow you interact directly with your customers, making them more loyal customers
It will allow you to interact more with your website visitors, specifically regular and new customers. This relationship will be nurtured via your websites by giving them more value from their previous buying. This will include consistent customer support, additional information that will be useful for them, and e-products like ebooks, apps and information that you might give away for free. This will create more loyalty in them and eventually convert them to become a loyal customer.
Lead-generation for your products and services through your website
A good lead-generation is an effective way to get more business through your website. As a website investor, you need to take out time to create a useful resource and promote it online.
Ways to generate lead through your website;
- Being a website investor, you need to be solving problem to be able to generate more lead. First, you need to find out your customers’ pain points. What are those things that frustrate them? What are those problems that they want your product or service to solve? on your website in no time.
- Once you are able to figure out what they need, you will be able to create a resource to pique their interests. This resource should be able to demonstrate that your website is a knowledgeable source for reliable information. This will create in them a sense of trust among your customers, not only do you sell your products and services, but you also provide additional value by helping them learn more about something they’re already interested in.
- To promote your products and services, you write few posts describing what your customers can expect to find when they come to your site. You may need to decide to post on social media, announcing your new products and services to followers. An effective tweet might include the cover of your products and the messages
- Ask your customers to provide their names and email address before they will be able to get the free gifts you have for them. Once they are able to supply the requested information, you will use their contact information to build relationships with them, in turn transforming them into more leads. People will be happy to provide their email addresses if they know that they will receive something that will help them in return. You won’t obviously be promoting your services instead, you show potential customers that you’re well knowledgeable about the City. When the time comes for them to book for any trip, you’ll be the first person they think of and from there you will be contacted.
Conclusion
No Free Lunch! Not even in Freetown!! Passive income, does require upfront investment.
You need to understand that your goal as a website investor is to recoup those investment without much stress. Always have in mind that the nature and working of website investment might differ from other investment. Unlike other major categories of investment, there are well developed markets for them. But website investment is not so. You will find the market yourself!