Many like to compare real estate and domain names. In the world of buying and selling websites many like to do the same.
I can say getting involved more in website buying and selling has become a bigger interest of mine over the last year.
Dominic Wells wrote an in depth article “How Websites Compare To Real Estate”
The article touches upon the following topics:
- Surface-level differences between real estate and websites
- High level numbers – what kind of ROI is common
- Achieving those numbers – what factors contribute
- Operations – running a real estate business vs websites
- Stability, diversification & risk
- Capital requirements and entry levels
- Leverage, debt and loans,
- Tax
While looking at what factors come into play to attain the desired ROI. Dominic wrote the following:
While real estate can appreciate, that price increase is out of your hands, and without the appreciation, your ROI is low. The real art to finding a great real estate investment is picking an area where appreciation is more likely than not, or even picking an investment that is under valued already.
With websites, you don’t even need the growth to get great returns, but you can achieve growth a large amount of the time too.
Google is the one big boogeyman that all website owners have to contend with.
The article is certainly worth bookmarking so you can refer back to it when needed.
Check it out at Onfolio.co
David J Castello says
I would say buying domain names is similar to buying residential real estate, but buying websites has more in common with acquiring commercial real estate.
Bossy says
Or a domain is the property. It’s value is relative to properties around it.
Devolpment is building something on it to make money.
If the property can more efficiently than other properties (domains) get the people that would most likely convert then it’s value can grow exponentially.
Michael Colpitts says
The link to the article has died!
Raymond Hackney says
Yes it looks like he having an issue with the whole site currently. Thank you for posting.