In my quest for finding passive income options I have stumbled upon something that many of you might consider obvious but it was totally unbeknownst to me until last week. Digital real estate or, better explained, the art of website flipping (buying websites, improve them and then sell them again at a premium). So far I have found two websites, Flippa and Empire Flippers where literally thousands of websites are listed for sale. What intrigues me about this investing opportunity:
- You can do it from home (I’d love to join the laptop business generation)
- You can learn with minimum investing (there are websites for sale at less than 1000$) and then scale up
- The yield of healthy websites is somewhere between 20 and 30 (20x monthly income=selling price). However, the one in need of TLC are sold at 10x yield. This means that by improving your website you don’t only increase your cash flow but also the overall value of your website.
- You can improve your skills gradually and some of the websites appear to require minimum maintenance
- You can keep your 9-5 job
I think I’ll be looking at this for the next weeks but if any of you have experience to share it would be great. In particular I have two questions on top of my mind:
- What would be the best legal set-up for a small company doing this kind of business in Switzerland (Gmbh, individual company, etc)?
- What would be the best form of income source for a truly passive, low maintenance income stream (affiliate, adsense, etc.)?