I'd never buy a FBA business due to the lack of control, but I can see the appeal. Good luck!
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Free registration at the forum removes this block.Good point, you are correct. By "passive" I meant not working 9-5, however, yes I expect to invest time and $$$ into the sites.As for passive income, not sure selling products online is passive model , you will need to put hours marketing , wiring , updating listing , etc
Whatever you're comfortable with. There's probably less risk with affiliate sites since you can utilize multiple affiliate programs on a variety of sites, but I'm not an expert on it.Sebastya, I'm assuming that an Affiliate model, you would not consider "in control"? I seem to prefer content sites where I can expand quality content vs. creating / managing physical product.
Since affiliate is usually a 1 time commission on a purchase. How about ad revenue such as mediavine?
buying e-commerces , FBA is very tricky, most of sellers sell them because for some reason they know they products no longer profitable like before, and it could be because too many factors, I would buy at first site that is under 10K because most likely you will fall into one of the sellers traps and you over see some red flag. so this will be a training for you.This forum has inspired me to invest into my side hustle of buying Internet sites. Been doing my DD for previous 3 months. Researching like crazy, talking to brokers, dabbling in Wordpress development, affiliate marketing, etc. I have a very busy professional job so I can spend nights / weekends on my sites. Maybe 10 hours per week max.
I will be investing $150k into web business over next 18 months.
My goals -
1. Passive Income - doing this to make money
2. Retire to do this full time in 5 years - As I wind down my day job and closing in on retirement savings completed - if I can hit $150k annual on my sites it will cover my expenses.
3. Learn the business - learn how to manage sites, make money online. I can do this into retirement for income.
I'm looking at multiple content or FBA sites around $30 to $50k, 2.5x purchase price vs. a single content site at $100k 2.5x purchase price.
So the question - do you buy multiple sites to diversify, reduce risk at the expense of more time? Or go "all eggs in single basket" with a bigger site.
TIA.
You nailed it, this was a great read."It Depends."
IMO It's not a matter of how much you're paying or how diversified you are, but...
1: What's the best deal?
2: How you can add the most value?
On the topic of "Diversification," maybe read this post by @snowbank.
Also read this thread from another forum member on operating a portfolio to see what it's like.
But say you buy multiple sites. Let's also assume you'll be limited to 10hrs/wk to operate and grow those businesses. Is it feasible that you can do so with those limitations? Are you going to have enough time to write content? Will you still be profitable if you hire out content / growth?
There's a lot of questions only you can answer for yourself. Some people are able to get sites profitable enough to put a business manager / additional staff in place from the get-go.
Others, not so much.
Sebastya, what type of sites do you feel offer "more control" and why?I'd never buy a FBA business due to the lack of control, but I can see the appeal. Good luck!
Sebastya, what type of sites do you feel offer "more control" and why?
Sebastya, I'm assuming that an Affiliate model, you would not consider "in control"? I seem to prefer content sites where I can expand quality content vs. creating / managing physical product.Anything where you own the customers information + delivery of product e.g. software, membership, courses etc. to name a few.
FBA is still a great revenue stream, just not my cup of tea.
FBA sites around $30 to $50k, 2.5x purchase price vs. a single content site at $100k 2.5x purchase price.
Biophase: thanks for chiming in. Part of my reason for buying this first site is to fund an R8 purchase similar to your Mclaren purchase (buy a biz vs. paying cash for luxury item) so you have inspired me.What kind of FBA site are you going to get for $30-$50k? Look at the numbers, you used 2.5x, so a $30k site would be making $12k a year. That's a small small FBA business. An FBA business doing $1k a month after 2 years is going to get crushed. How can it maintain rankings?
You need to look at FBA sites that are asking at least $100k to be anything that is established.
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