I wanted to write this to demonstrate how practically anyone with digital marketing knowledge can earn £100K+ a year within 8 years by starting out with £5,000.
Now I should start off by saying that what I have to share is realistic (no bullshit), so it will require time, patience and discipline. While it’s theoretical, the fundamental principles here work, and it’s something I personally try follow myself. I also know that this isn’t the quickest way to make money online either, but it’s what i’d consider a ‘safer’ route, which I’ll explain later in this post.
I appreciate not everyone has £5,000 lying around, but you can start off with less money (but it will take you longer to hit £100K+).
So how is this possible? It’s so simple that I’m actually surprised at the amount of people that aren’t doing this. The key is buying existing and already profitable websites, and then using the income generated to buy more profitable sites. By repeating this and reinvesting your income, over time your earnings mount up. You’ll also be creating money earning assets in the process, which you could always sell if you want/need to.
If you start off with £5,000 and buy a website for the amount it would earn over a period of 18 months, and then continually reinvested all your profits, below is the amount you’d earn over a 10 year period. After 5 years you’d be earning close to the average UK salary of £26,000. Take a look below.
|Year||Reinvested Profit||Average Monthly Income||Payback At End Of Year|
|1||N/A (intial £5K investment)||£277.78||£3,333.33|
If you’re curious as to how much could be made with a different initial investment I’ve added a google spreadsheet here. You can edit the initial investment amount, and the monthly multiples for which you’d buy sites for and it will automatically update so you could see potential earnings over time.
Where to find websites
There’s a few places you can keep an eye on, such as flippa and acorn domains, uk business forums etc. It’s worth noting though that sites listed for sale at these places get put in front of the eyes of many other digital marketeers which can push up prices. So you might struggle to buy a site for 18 months revenue, although it is possible as I have done it myself. If you want to find the deals, then you’ll have to put a bit of ground work in and go where they aren’t in front of everyones eyes.
The important thing when you’re looking to buy a site is that you do your due diligence. Failure to do this properly could result in the purchase of a site that was only ever destined to fail. For example, sites that have had questionable seo tactics done to rank them which show good traffic and earnings now, but in a few months time will be penalised by Google.
If a site is getting most traffic via SEO, I try to go for sites that have a decent history of traffic and earnings. This shows to me that it has been able to survive the ever-changing SEO landscape, and should hopefully be able to maintain earnings moving forward. I always try and get a second opinion too.
You could also opt to buy sites through a broker such as Empire Flippers or FE International, you’ll usually require a bigger budget here, as these are higher end sites, and don’t expect to pay 18 months revenue for a site either. BUT what you will get is an expert who can help you through the process and due diligence, which would offer you some piece of mind. FE International have actually done a really good piece on due diligence here.
Now I mentioned earlier how I thought this was a ‘safer’ route when investing online. What I meant by that was that if I had money to start an internet business from scratch, it may or may not work. Regardless of how confident you are, it’s unknown. Whereas buying a site that is already earning, you already have proof that it works. While it still carries risks, it’s less risky.
Of course there are some flaws with the above ‘plan’, and i’m making assumptions that all funds get reinvested, sites are continuously acquired at 18 months revenue etc. But the principle is there and the numbers don’t lie (unless i’ve done my calculations horribly wrong).
I’ve now made it a ‘test’ of mine and think to myself “If I can make this investment back in 18 months or less I should probably try buy it” – provided I have the funds of course.
I was actually inspired to write this post by Ryan Gibson, who around a year ago now used interest free credit cards to fund his website acquisitions. Ryan has now recently paid off the cards in full, and everything he makes from now on is 100% profit. A wonderful achievement!
Around a year ago I took a punt acquiring a number of websites with interest free credit cards. Just made my final payment. #inprofit
— Ryan Gibson (@freshbrewuk) July 7, 2015
The internet is a big place now, there’s opportunities to invest in websites and make money for everyone. If you’re not doing it already, I really do suggest you give it a go.