I want to be the “Digital Landlord”. I want to own website real estate that I can “rent” to small businesses.
This isn’t about owning domain names since that would not work. People would just buy different domain names – they aren’t that important for local businesses.
No, this is about owning the building, or the website in this case, that is set up such that it is like a goldmine for people, renters. Renters would be willing to pay landlords money if the property is on a prime piece of real estate that practically guarantees a certain level of business, right?
It is Better to Rent than Sell
One of the first rules of real estate is never sell properties (or something like that). What it means is that you don’t usually want to sell a great piece of real estate if you can make money hand-over-fist from it.
We’re marketers with web development skills. We could build websites and sell them to our clients, but what’s the value in that? We would rather make mostly passive income by renting out an extremely high value service month after month.
Websites are worth the amount of time that the designer puts into the website plus a premium based on the designer’s/company’s reputation and ability.
But let’s change the perception on that product from a website to a marketing system. If it can generate Kshs 30,000 consistently, the business owners aren’t going to pay for the amount of effort it takes to create, they’re going to pay for that high value that it generates for them. I don’t know too many business owners who wouldn’t pay you Kshs 5,000 to generate Kshs 30,000 in new revenue.
Let’s say that you can do this just 2 or 3 times a month consistently. Don’t you think the business owner would be more than willing to pay you Kshs 5,000 a month for a LONG TIME than Kshs 25,000 just once?
Build a Ton of Buildings
If this works one time, why not do it over and over again? I can build a bunch of different buildings, or “client generating systems”. And I rent out a part of those buildings to a ton of different clients.
Let’s put some numbers on it:
- I can rent out my system to 100 different clients in the same industry across the country at Kshs 5,000 per month (I won’t get too greedy)
- That’s Ksh 500,000 per month for just one “building”
- Once that works, I can build 20 different “buildings”.
What’s better than being a digital landlord? And I’m sure you can figure out the math for the monthly income….
Interesting in investing in websites? If you want to get into this but have no idea how to search for, value, evaluate and manage a website, give us a call. We’ll work something out.