About Dominiche - Is Flipping Website a Good Business Model?
Topics: General Business, Internet Marketing
There’s a recent launch (or re-launch) in the information marketing industry called the Dominiche. The guy behind it is Ed Dale, who’s a veteran information marketer, and one of the faculty member of Stompernet.
What Dominiche teaches you is essentially how to profit from buying and selling websites (or building & selling, flipping…). Now before we get into what I think about Dominiche, let me talk about whether I think Website Equity is a good business model.
In short, YES.
Here’s why: How much would you have to pay for a investment real estate property in order for it to pay you $1000/month in rent? Its going to be about $100,000. How much do you have to pay to buy a website which pays you $1000/month in profit? Um.. about $15,000.
So in terms of cashflow, this is GREAT.
How about in terms of increase in property value?
Well, let’s see, if you buy a house, no matter WHAT you do to it, renovating it, market it better… it will be almost impossible for you to flip it for more than 100% within 6 months. However, for websites, you can easily promote or monetize a site better and achieve a 100% increase in income - therefore increasing the website’s value by 100%.
Why? Because as of this moment, the value of websites are almost only based on its income.
There’s only one problem. With real estate, you can leverage. You can borrow money to purchase a property you can not otherwise afford, and thus you will gain much more in terms of increase in property value (that is if it increase).
As of now, there aren’t very many mortgages available for buying websites.
The potential I see here is not just with flipping websites itself, but the secondary industries that are going to be generated because of that. How if you become a mortgage company that specializes in provide mortgages for website acquisitions? How if you become a major broker in the area? How about an appraisal firm for website equity?
Does that excite you?
Now I’m not a member of Dominiche or Stompernet, and do not intend to join. But from what I’ve heard, those guys know what they’re doing. And for just $2000 something, its worth a shot at it and I look forward to hearing from your success.
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