Are Some Webmasters Financial Masterminds?
April 20th, 2006
I just finished reading a great book called Rich Dad, Poor Dad by Robert T. Kiyosaki. And I thought that I should write about the financial intelligence of some webmasters.
Many of the people that daily are active in the buy/sell website forums, they have understood what it is all about. They are financial intelligent, so to say.
Here’s the reason for my statement:
- They are always on the looking for good investments
- They buy websites for the revenue generated by their websites
- They improve the websites to generate higher revenues
- They sell websites for more than they were bought for
This means that they constantly improve their cash flow by improving their website portfolio. And thereby become richer every day. The webmasters are not working for money anymore, the money are working for the webmasters.
Considering that websites typically sell for amounts around 12 months of revenue, this is also a very attractive market. If you’re constantly buying new assets for all the revenue generated by those you currently own, you’ll be experiencing an amazing growth.
Also remember that if you have a corporation for your business you won’t have to pay much in taxes (maybe even nothing) because you get tax deductions for your purchases / investments.
Of course webmasters don’t have to invest in new websites, they can just as well invest in the growth of their current websites.
Tags: website assets, online investment, website investment, website cash flow
Entry Filed under: Generel Stuff, Guides and Tips
4 Comments Add your own
1. A.H | April 23rd, 2006 at 16:04
I heard about Rich Dad, Poor Dad a lot of times and a lot of good feedback, i have to read this one already!
—
To be back on topic: It’s obvious that
somemost of webmasters are around for the money, and there’s nothing wrong in it. There are two obstacles in front of those who are new to this:-Financial hesitations: Investing $1000 in something that is hosted on the web is still a bit frightining, no matter how real it’s getting, I see a lot of people hesititaing when looking at a website that do earn $100+ and offered for sale at $1000.
-Technical fears: Like me, a lot of people don’t buy sites not because they’re unsure of their financial/content providing skills, but because they know they don’t have the technical ones. Of course here comes the CMS, but most websites today has got simple ones, or none at all. that’s why i only buy blogs =)
Regards,
A.H
2. Stefan Juhl | April 24th, 2006 at 06:53
Yes, of course there are some who feel like they lack some necessary skills. But then they should try and go for websites making a bit more than $100, so that they will also be able to pay a programmer etc. to do some maintenance when needed. I find my self using freelancers for more things everyday. Unfortunately there’s also risks with doing that.
The author of the book also states, that it is most often because of fear etc. that people aren’t investing in “the right way”.
3. Dave | June 22nd, 2006 at 00:50
I need to read that book, I heard it’s a very good read.
Dave
http://www.newtechnologyblog.com
http://www.creditrepairfree.org
http://www.dogs.pn
4. nick | January 2nd, 2008 at 13:20
Sometimes the sites drop in traffic so there is a risk no to sale at a higher price.
http://www.businessforsale.in
http://www.mortgagebroker.in
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