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I have been gone from this blog for a while because I have been busy with other things.  I do want to update you all on what I have been doing.  In the past month I have been working on reinvesting my blog income into more income producing properties.  And no, I am not talking about real estate.

What I have been doing is looking for established websites to purchase, and so far I have purchased several  sites for a few thousand dollars.  These are sites that generate a lot more pageviews than my own blog, and I have been working on monetizing them.  In the process of purchasing these sites and testing various monetizing schemes I learned quite a bit about internet marketing, and the valuation of a website.

I also learned quite a bit about what types of website traffic is valuable, and what demographic is more likely to go to certain sites.  There is quite a bit of science behind this, and in the past month I have been reading and learning.

On the income front, so far I am on track to generating about 7% of my purchase price per month in income.  So this means I will get my principal back in a  little over a year as long as the sites are operating as they are now.  If I increase the income stream I will get my money back faster.  After I get my principal back all the income would be just pure profit because it doesn’t cost me a lot to hold extra websites.  My hosting account can host an unlimited amount of sites, and the cost of renewing a domain is less than $10 a year.

My plan is to reinvest all of my internet generated income for this year back into purchasing more web properties, and eventually I will have enough income to quit my job.  I am actually planning to use some of my money from my company’s sale to buy a site with 2 to 3 million pageviews a month, and see what I can do with it.

To be honest, established websites can be extremely good investments if you know what you are getting into, and you can effectively monetize the traffic.   The general going rate for a website is 6 to 12 times the monthly income, and as long as you know how to maintain the traffic and income, then they are probably the best income producing properties out there.  There is definitely risk involved, and you have to know how to pick the sites that are evergreen.  I may write about this more in detail when I actually make enough to quit my job.

Right now I am happy with my initial experiment because I am collecting several hundred more a month on a very small investment. My parents are always talking about their real estate but their return is only a few hundred a month after taxes even though they invested  20 times of what I did.  If I spent the amount of capital they did on websites then I would be making more than a fulltime income.

Anyway, I will keep you all updated on what happens.  In other news, my hubby finally got his own domain for his top notch gaming blog .  Hopefully he will soon start getting compensated for his excellent writing.

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viagra canada over the counteron 09.23.10 at 11:30 pm

Hi there! I just started reading your blog (very interesting!) and I’m intensely curious about your new plan! My current plan has been to *build* information niche websites, but of course that is very slow since I also have a full-time (contract) job. I am sure you have hard-won secrets that you don’t want to share, but will you be sharing any tips on content areas that you are interested in? Or things like that?
~Angela :-)

viagra canada over the counteron 09.24.10 at 5:34 am

This is a great idea; I know I should be investing my extra/passive income into something I just wasn’t sure what!
I’m not making that much, however it makes sense to put it to work – my initial thoughts are extra payments to the mortgage.

viagra canada over the counteron 09.26.10 at 9:27 pm

I don’t have an inclination to invest in web sites but I look forward to hearing more about your exploits.

Good luck and keep us informed and let us know what web sites you purchase so we can go on them and monetize for you.

viagra canada over the counteron 09.27.10 at 11:49 pm

haha maybe in the future i’ll say which sites I bought. They’re not really related to personal finance or money, but they still make money so it’s all good. I have also built a few other sites on the side that aren’t exactly blogs. Those are also earning a trickle of income. It’s better than nothing considering how savings rates are 0.20% or something now.

viagra canada over the counteron 10.17.10 at 6:41 pm

Just curious if you’re using Flippa to buy the sites or somewhere else…

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