Investing in blogs seems to be a growing trend. The popularity of sites like Flippa have continued to rise and more and more investors are looking to put their money into web properties.
So what’s the hype all about?
Blogs have the potential to earn some serious money. Building a successful blog is not easy by any means, but it can be done.
Contrary to popular belief, making money from blogs is not a form of passive income — at least not in the early stages. However, if you can find a blog that is already pulling a consistent income you can outsource the upkeep and still watch the money come in.
I like to view a blog or website like online real estate, and you need to treat it just like you would a rental property.
Here are the steps you need to take to invest in a blog.
Familiarizing Yourself with Blogging
Blogging is a learn-as-you-go type of thing, but with any investment you make you need to know what you’re getting into beforehand.
If you have no experience running a blog, it’s a wise idea to first obtain some. You can test the waters by starting your own blog. It’ll cost you less than $50 for one year’s hosting plus a domain name if you opt for a free WordPress theme. We recommend Bluehost — if you sign up through this link you’ll be able to get a domain name and hosting for $2.95 per month!
Start reading blogs about blogging and also pick up some books by experts. After you get some experience under your belt you can then decide if buying a blog is an investment worth taking. I’d advise familiarizing yourself with blogging for six months to a year before investing any money in it.
If you decide that you want to add blogs to your investment portfolio, here are the next steps you need to follow.
Choosing a Niche
A niche is simply a blog genre and picking a good niche is an important part of the blog investing process. For example, it’s always easier to write what you know, but will what you know earn money?
When deciding on which niche to choose consider your:
- Area of expertise
- Competition
- Ability to earn money
Ideally when you purchase a blog it should already be ranking in the search engines for some of the key phrases regarding its topic. However, will you be able to compete with the competition if you decide to expand the blog? Will the blog topic maintain long-term interest?
These are all questions you need the answers to.
Deciding Which Monetization Methods You Prefer
There are many different ways you can earn money through a blog. And when you are purchasing an existing blog you need to know (and like) exactly how the blog is monetized.
Here are the most popular ways to monetize a blog:
- Affiliate sales (getting a commission from selling someone else’s product)
- CPC ads (cost-per-click ads — you get paid every time someone clicks an ad on your site. The most common program is Google AdSense)
- Direct advertising (companies advertise on your sidebar, etc.)
- Selling your own products (ebooks, courses, etc.)
Blogs usually make money from a combination of these methods. When you a purchase a blog you need to know the specifics of how the blog is making money and you need proof! Ideally, the blog you invest in should be consistently earning money month after month.
Over time you’ll develop a monetization preference and will look for blogs monetized the way you prefer.
Determining a Price
Blogs sell at all different price levels. It’s common for a blog to sell for 6 to 24 times what it makes in a month. Of course, the more stable the blog’s income, the higher it sells. The more upkeep a blog requires and the less stable the income, the lower it sells.
You need to decide how much time you have to dedicate to the blog or plan a strategy to outsource if that’s the route you choose to take.
Decide what you’re looking for in a blog and what you are and aren’t willing to pay now.
Make sure you also read the story: How I Sold a Blog for $11,000 That I Built in My Spare Time.
Purchasing a Blog
I’ve been hearing of more and more buying and selling sites for blogs pop up. The ones I’m familiar with, however, are Flippa.com and EmpireFlippers.com.
When you decide you’re ready to invest in a blog you should take plenty of time to find the perfect investment. Stick to the criteria you’ve chosen above and stick to your guns when it comes to pricing.
If you’re new to the blogging world, it’s a good idea to start with a fairly low investment. And, before you purchase a blog, make sure to get actual proof of what the seller claims.
There are many sellers out there looking to scam so make sure you perform your due diligence.
Keeping at It
There are not many blogs that can be set up and then neglected. Most blogs require consistent work. That’s why it’s so important to familiarize yourself with the blogging world, determine how much time you want to invest, and have a solid strategy for keeping up with the blog after it’s purchased.
Blogging is not for everyone, but if it is something you enjoy it can be a worthwhile investment.
Have you ever thought about investing in a blog? Do you view it like online real estate?
Brian @ Luke1428 says
“…view a blog or website like online real estate…” As someone who invests in rental real estate, your statement rings true to me. It’s the perfect way to think about our blogs.
luckytoddler says
Thank you for the great tips. I’m still in the learning process and could really use information like this.
Sharon Braswell says
This was a very informative post about investing in a blog. I have thought about it myself since becoming disabled.Thanks for all of the valuable and detailed information.