When I first started learning about buying profitable websites, I had absolutely no idea how to get started and the steps in which I needed to take. Let alone the process for which steps to take first.
For me though I initially learnt a lot about how websites make money from travel blogging which essentially lead me into buying profitable websites.
However I find if you know nothing about investing in websites to begin with. The very first thing you need to do is understand these 4 essential before you start buying profitable websites.
- How websites earn money (their business model)
First of all the most important thing to learn before buying profitable websites is to understand how these websites make money. Obviously you shouldn’t just go and buy something you don’t know how to operate, that would be like buying a car when you don’t know how to drive it. It’s only going to sit in the garage and collect dust.So to understand how websites work there are many different types of online business models you should learn. Where I find there are 7 main types of Online business models;
– Affiliate Websites
– Advertising Websites
– Membership Websites
– Drop Ship Websites
– Broker Websites
– Ecommerce Websites
– Lead Generation Websites
I highly recommended taking your time to learn about how all 7 of these online businesses models work. Although when it comes time for you to start buying profitable websites, it is certainly best to stick with at most 1 or 2 different types of websites to really comprehending how these business models work and make money. By focusing on just a few, eventually you will start to see how most of the other online businesses operate too.
- What work is required to run the business
Once you have learnt about how each particular business earns it’s money according to what business model it is. You can then start to put the pieces together and understand what type of work is required to run, maintain and even grow each of these particular websites.Or if you already know a little about websites and their business models, you may also be able to see (and note down) how the business can be improved. Along with what type of work would be required to do so as the new business owner.
When you know what work is required to run the business, and if you are choosing to not flip the business for some quick cash. You can then start to see what you may be in for before you start to put your money down and buying profitable websites that you may like.
- Which Business Model Suits You?
From learning a range of different types of online business models from the 7 I listed above. You can then start to gauge which of these business types would be best suited for you and your lifestyle.This is very important, because not all online businesses will be the right business or investment for you since some will interest you and some may not. Which is perfectly fine!
I personally like to only invest in 2-3 types of online businesses myself because they are what I like. I am more confident in running owning and managing those types of businesses. Which is why I suggest for you, instead of trying to buy many different types of online businesses or researching everything you can.
Stick to 1-3 business types that best suit your interests and get really good at knowing how only those types of online businesses run and operate to prevent yourself from spending a lot of time on many website types, where you can focus on a few and get far better at understanding those. This will help you to increase your success in making more money when you start buying profitable websites.
- How To Perform Due Diligence
Once you have been through the previous stages of learning how websites make money, the different types of online businesses and what is required to own, run and manage these.You can then start looking into one of the most important aspects of buying profitable websites before even putting your money down to invest, which is how to perform due diligence.
Which essentially is finding out how much money the business is earning, what it’s expenses are and everything from the financials, to the SEO, the traffic and even proof of ownership.
This certainly is the most crucial step to learn and continue learning as you start to become a pro website investor allowing you to live the lifestyle you have always wanted.
I can’t stress this enough, learn as much due diligence as you can and take your time performing your due diligence on each and every businesses before you start decide to invest. To learn more about why due diligence is important for success check out this blog post here.