There are many types of website investors, which makes the way we each individually invests in a websites quite unique. It also shows that our reasoning for investing in different websites can be vastly different.
For example some investors may choose to purchase a website with very low revenue or profits, where as other types of website investors wouldn’t even consider doing such a thing.
That is what makes the website market special, with so many unique types of website investors. And although there may be many reasons and ways people are investing in websites, essentially there are four key types of website investors.
By knowing which type of website investor you are, it can really help you to focus on just the type of investing that suits you and get better at it. Or it could even help you to see which type of investor you would rather be.
Which is why I want to share with you these 4 different types of website investors who they are, what they do in the way of investing and why.
This is where we all start, in the trenches. Learning as much as we need to know about investing in websites so we don’t get taken advantage of. As the rookie you learn some of the hard lessons needed to rate yourself among the other types of website investors.
Everybody has to start off as the rookie to appreciate what website investing is, how it is done and also the ins and outs so we can eventually start to work out which of the types of website investors is best suited to our personality.
Being a rookie in anything, not just website investing isn’t all that fun. But a fundamental experience that can and will shape which type of website investor we will become.
The Flipper is one of those types of website investors who looks for an undervalued deal (website), buys it, maybe slightly improves the website in a few different ways and sells it on.
The Flipper can purchase a business and do this within a few weeks or up to a few months into years if they like, depending on what work they are doing to the investment or if they can get the price they want for the business.
This is similar to flipping in the property market although this is simply flipping digital property instead. Meaning it can be done far quicker, cheaper and easier than having to flip a physical property and the returns can be just as good but usually far better.
The Portfolio Producer
The Portfolio Producer is the type of person who is looking for an online business in which has already been completely set up, is ticking over and already making good money every single month. All the work has been done or is being done by staff which are employed by the business.
Essentially they are looking at investing in a website where there is little to no work required, so they can simply add this investment to their portfolio and keep their money tree (website) paying a monthly return on their investment. Generally they will use this money to invest in another website or possibly something else to diversify their portfolio.
The Buyers & Builders
The name here says it all, these types of website investors are the ones in which buy an online business, build it up and hold on to it to reap the full benefits of the profits. This is what I do myself, I am a true Buyer and Builder website investor because the longer I hold on to my investment and the more I build the business, the more return I gain.
Sure whilst this can be a slower path to riches, it is far less risky, a little less work (than flipping) and far more rewarding. To all those who are out there looking to be website investors, in my personal opinion this is they best type of investor to be. However for some of us we may be far better suited to simply add to the portfolio or start becoming the avid flipper to make a quick buck. Whichever way works for you is the best way to continue improving on.
So which type of investor are you? Are you a rookie and what have you learnt so far? Or Are you the Flipper, the Portfolio Producer or the Buyer & Builder and why does this suit you best?
Please leave a comment below on which type of website investor you are and why so we can all learn from each other.
I hope you found this post helpful for finding out the different types of website investors and what motivated them to invest in websites and why. If you found this informative and would like to learn more about investing in online businesses, be sure to grab yourself a copy of my Free Report On 6 Exclusive Secrets To Buying Websites For Passive Income to continue your education.