How to start a digital real estate business in 2024:
- Gain foundational knowledge of digital real estate.
- Choose a type of digital real estate to sell.
- Determine the digital real estate platform you’ll use.
- Create your digital real estate content and build your audience.
- Pick a digital real estate monetization method and start earning.
Building a digital real estate business from scratch in 2024 requires researching into metaverse investments, selecting the right virtual assets, and learning different marketing and monetization strategies. According to Mike Vestil's YouTube video entitled How To Start A Digital Real Estate Business In 2024 (For Beginners), aspiring online business owners must first identify reputable digital spaces and platforms. A great example of this is Flippa. It's an online marketplace for buying and selling virtual lands and digital assets, domain flipping, and website flipping. Mike Vestil also suggests creating digital products and maximizing the latest technologies to bump up your chances of success.
Digital real estate is tangible "land" in the virtual world. It's anything that exists online that has value. As a result, digital real estate investing is one of the most powerful passive incomes available in 2024. Moreover, a digital real estate investment allows you to diversify your income stream. You can rent or sell your products or services online. But you need to focus on where there's traffic. Most people use tools like Google Search or KeywordsEverywhere to find popular search queries and digital products.
There are mixed reviews online regarding starting a digital real estate business. Some individuals like Redditor Wilconsix_4582 see the good and bad sides of this business model. He said that digital real estate can offer a notable value if traffic, brand presence, and search engine ranking is high. However, he also commented on the subjectivity and volatility of these virtual assets. Whenever market trends emerge, the value of your digital assets can either increase or decrease. Some other Redditors like Combatwombat007 and Evodnce mentioned how these assets are a type of MLM (multi-level marketing) scheme.
On the other hand, Millionaire Millennial talks about one can earn up to $4,000 monthly with digital real estate. In his YouTube video Make $4k/Day From Digital Real Estate, he mentioned how sites like Locate Near Me, Night Thrive, and Mental Health Niche Site can earn anywhere from an RPM (Revenue Per 1,000 Visitors) of $24 to up to $250,000 monthly for 5 million visitors.
Yes, digital real estate is legit. Digital real estate is virtual property you own. Once you make it worth something, it has the potential to produce multiple income streams. In addition, you have options like lead generation or selling digital products so you don't need to rely solely on investing in things like Metaverse real estate, NFTs, or Bitcoin. Plus, by investing in digital real estate now, you can beat the curve and secure a passive income.
However, this business model has obvious challenges like market saturation, digital copyrights, and income instability. But are there advantages as well? And how does digital real estate work? In this article, we look closely at how digital real estate operates and makes you money in 2024. We also dive into a few of the most popular types, including how to make money with digital real estate through generating leads for small businesses.
How To Start a Digital Real Estate Business in 2024 (5 Simple Steps)
Step 1 - Gain Foundational Knowledge of Digital Real Estate.
It is crucial to gain in-depth information on the core concepts, processes, and strategies of digital real estate. This foundational knowledge will help you determine what factors can affect your future online business. According to Quora user Alexandra Morgan, learning everything you can about digital real estate helps you amplify your visibility and reach, gain data-backed customer insights, and adapt to the latest market demands. It also allows you to overcome common challenges because you have the information you need to develop online countermeasures.
In fact, Sahar Lester recommends learning the ins and outs of digital real estate because of the endless opportunities it offers. You'll know the right digital products to choose and how to market them to make the most of your investments. She also mentions how this first step can help you gain a stable footing in the digital landscape.
Some reliable platforms for learning about digital real estate include Udemy, The Knowledge Academy, Coursera, and SMU Academy. They have lessons fit for beginners and experts on everything related to digital real estate. Kris Krohn, Mr. Money, Mike Vestil, and Millionaire Millenial are also trusted influencers when it comes to this topic. They have free YouTube videos to help you start a profitable digital real estate business.
Step 2 - Choose a Type of Digital Real Estate To Sell.
You must choose a digital real estate product that you are capable of producing and manufacturing. It should be in-demand, profitable, and sustainable in the long run. According to Rocket Mortgage, Built In, and The Motley Fool, some of the most common digital products include cryptocurrency and NFTs (Non-Fungible Tokens), mobile applications, websites, subscriptions, eBooks, domain names, audiobooks, and social media accounts. When choosing what products to sell, you must consider the following questions:
Step 3 - Determine the Digital Real Estate Platform You’ll Use.
The third step to starting a digital real estate business entails determining the platform you will use to make, sell, and market your digital assets. Because of the abundance of competitors in the market, you need to pick reputable platforms in your chosen niche. According to Bolster's 2024 Phishing Statistics and Online Scams Report, there has been a 94% increase in digital scams from 2020 to 2023. This means that your potential customers are wary of unknown platforms. Some popular platforms for selling digital real estate products include:
Before choosing your digital real estate selling platform, it's best to match your brand goals to the platform's features, VMG, and capabilities. According to Marie Melgaard's article on Aventi Group, you must research your competitors, focus on the digital products you want to sell, and consider your available resources.
Step 4 - Create Your Digital Real Estate Content and Build Your Audience.
Creating your product and marketing content and building your customer base is one of the most important and difficult step in creating your digital real estate business. In fact, Semrush's The State of Content Marketing 2023 Global Report reveals that 97% of marketers and more successful because of content marketing. This emphasizes the importance of creating high-quality, relevant content to entice your potential customers and drive them to make a purchase.
You can use tools like Grammarly and ProWritingAid (grammar and sentence structure), Ahrefs and Google Trends (keyword research), Canva and Adobe (graphic design), ChatGPT and Google Bard (AI content generation), and many more. For driving engagement, popular online platforms and software include Hootsuite, Buffer, Unbounce, and Brandwatch. These tools help streamline your content creation and marketing process.
Step 5 - Pick a Digital Real Estate Monetization Method and Start Earning.
Monetizing your digital real estate products requires you to choose how you want your business to make money online. You need to commit to the time to establish your online business and drive traffic to your digital properties. It is pivotal to choose methods that you're good at to prevent lapses in platform regulations or marketing management. You can monetize it using the following ways:
Once your site ranks well in the SERPs, you can maximize your digital selling channels. This lets you build better cash flow to secure additional income streams and even higher profits.
5 Popular Types of Digital Real Estate
1. Lead Generation
First on our list and our number one recommendation is local lead generation. Lead generation (also referred to as rank and rent) is about building and ranking websites on Google. Each site is a digital property you own. The goal is to get your site to the top of the SERPs. Then get your GPB at the top of the 'map pack.' But because there are limited spots at the top. Once you rank your virtual property, it offers insane value to local business owners.
You can build as many lead generation properties as you want. But you don't need your website at the top search engines to sell your leads. As soon as you have a site producing leads, find a business owner currently using Google Ads. Then sell them your leads. (The key is to focus on local niche markets).
Plus, you can negotiate the price or payment structure. Business owners need leads to stay in business. So not only are you able to generate an income on autopilot. But you're helping local companies get their fair share of the market.
Advantages of Lead Generation
Straightforward to rank (because you're targeting local, not national traffic)
Easy to sell to potential clients (because you're selling leads, not services)
You own the assets
Minimal client interactions
Highly scalable (These virtual properties don't take a ton of effort or maintenance. Plus, once you develop your processes, you can just rinse and repeat.) and compared to how much lead generation companies make on a national scale, like HomeAdvisor or Thumbtack, your ROIs are much higher.
2. Social Media Assets
Social media channels offer an advantageous way to make money with digital real estate. With more than 4.26 billion users, projections suggest that number will grow to nearly 6 billion by 2027, according to Statista. But developing a social media platform requires patience and consistency.
Once your social media channel has a substantial following, you can leverage it with other brands. For example, your business could include a variety of services and sponsorships. Or paid endorsements from business owners who want to get in front of your audience and promote their product or service. You need to share value, be up-to-date with trends, and have a clear call to action.
Of course, you can purchase existing channels from sites like Fameswap and SocialTradia. But to build your own audience, you need to be an expert marketer and content creator. So you need to understand how to hook your viewer.
- How will you make them stop and take notice?
- What angle will you use to stand apart from the competition?
- How will you get viewers to stay and watch/subscribe to your channel?
Popular Social Media Asset Options
3. Websites
Websites are one of the most lucrative digital real estate platforms available. You can purchase a new domain name from platforms like HostGator or Namecheap for around $10 or less. Or you can opt to buy an existing site on platforms like Flippa and Empire Flippers (from $100+). Then it's your job to optimize and create a valuable online entity.
But you need to be an expert copywriter. And consistently publish high-quality copy with a unique angle. The goal is to become an authority and build trust with your target market. So you need to pick a topic you're passionate about. Or something you have a ton of knowledge around. Consider things like:
4. Email Lists
Building an email list may not be the most exciting online business. But consider this. If you have a niche-specific audience with whom you have created a trusting relationship. An audience that enjoys your curated content and views you as an authority in a specific market.
Then your email list becomes a direct line of communication with your customers. Plus, subscribers are more likely to purchase from you because they trust your recommendations. In addition, you now have the power to leverage your list in multiple ways. For example, you can monetize your list with things like:
How To Monetize Your Email List
Emails are targeted and purposeful. They’re also one of the best ways to connect with your audience. As a result, email lists outperform other marketing techniques. In fact, according to HubSpot, 87% of B2B marketers state that email is one of their top distribution channels. Also, you don't need a giant list to rent your digital asset because your list has value. So it's worth the time and effort to create.
5. Digital Products & Software
The digital media products industry is worth almost $331 billion, according to Statista. Not only are they a way to diversify your income. But digital products usually have a high perceived value. Plus, once finished, you can sell them repeatedly. As a result, digital products have quickly become mainstream. A few popular options include:
- eBooks & Online Courses
- Streaming Movies & Video Games
- Software & Apps
- Music & Audio
- Stock Photography & NFT Real Estate
You can sell digital products through a personal website. But you can also opt to sell on Marketplaces (like Udemy or Skillshare). Or leverage a ready-made audience on platforms like Etsy and Amazon.
What are the Benefits and Risks of a Digital Real Estate Business?
Digital Real Estate Business Benefits
It typically requires less upfront capital than physical real estate.
This business model offers a scalable way to invest in the digital future.
It allows you to have control over your investment with more customization.
This business model appreciates quickly and has the potential to make higher profit margins than traditional real estate investing.
Digital Real Estate Business Risks
This business model's algorithms and market trends can be unpredictable. Plus, volatility remains a major concern.
It requires specific skills you need to learn (or know) if you want to grow your assets.
Certain ventures will take longer to set up and build credibility before they're valuable.
How Much Money Do You Need To Start a Digital Real Estate Business?
It costs around $200-$300 to start a digital real estate business, according to Forbes. This includes your domain name, web hosting services, site themes or templates, and SSL certificate. You also have the option to go with a professional web design ($100-$5K+) or maximize DIY website builders ($100-$400 yearly). Some great website builders are Weebly, GoDaddy, and Squarespace.
How much money you need to start a digital real estate business will also depend on your asset of choice. But digital real estate investing is significantly less than investing in the traditional real estate industry. So instead of spending hundreds of thousands of dollars on a single-dwelling home, you can purchase web hosting and domain services around $30-$500 yearly.
Can a Digital Real Estate Business Make Money Online?
Yes, a digital real estate business can make money online by renting out or selling virtual properties like websites, domains, e-commerce stores, and ad spaces. They generate around $100 to $700 a day or $35K to $46K monthly, according to Mike Vestil. However, this amount can vary depending on site traffic, brand presence, online engagement, customer reviews, and the type of digital real estate being sold. You can also buy and sell in-game items, digital collectibles, NFTs and FTs, and cryptocurrencies.
Mike Vestil also shared how he knows individuals who are making money with their digital real estate business. A 62-year-old woman made $160K in just 98 days while a woman living in an RV earns $100K monthly. Mike also met people on platforms like Tinder and Bumble who are generating $86K income per month.
Once your websites (or digital real estate properties) are generating leads or driving traffic, you can take a piece of your monthly fee to cover any additional costs. And even if you buy an existing site or channel, your virtual assets will still cost less than purchasing physical real estate. Plus, you can build out sites simultaneously. And there's no limit to how many digital properties you can own.
My Top Recommendation for a Profitable Digital Real Estate Business: Local Lead Generation
Digital real estate is valuable because people want it. It's an asset that increases in value over time and allows you to scale quickly. For example, the URL cars.com sold for $872 million. So starting a digital real estate business can build an online empire of virtual assets and create passive income. In addition, investing in online real estate doesn't cost as much as physical property. But once your site offers value, you can sell it for even bigger payouts. As a result, virtual property is drastically changing how we transact in the real estate market. And now is the ideal time to start a digital real estate business.
However, some digital real estate transactions like selling websites, social media accounts, domains, mobile apps, and software has risks and challenges. These include targeting hyperspecific clients, breaking into saturated markets, and taking the time to create content-based digital products. Local lead generation is better because it's niche-specific. Plus, it's location-based. So it's not wide open or easy to copy unlike other business models or digital assets. Therefore, the market isn't saturated. Plus, you own the site and you control the calls. They're your leads.
It's the best way to generate passive income from your virtual land because you can publish multiple sites and rank them simultaneously. Some sites even get to the top of the SERPs less than 6 weeks. Once you learn the skills, you need to manipulate SEO tactics and strategies. And get your digital property to the top of the search engines. You rely on organic traffic, which is more predictable and gives you more control over the rankings. So you don't need to rely on paid ads that are expensive. Your digital real estate business has the potential to bring in 95% profit margin or over $50,000 monthly. You just need to find a small business owner and sell your free leads.
The virtual real estate market is getting more popular and in-demand in 2024. That's why building a local lead gen business through digital assets is the most scalable and profitable way to make passive income online.
Awesome post and information but does this still work? I've seen people talk about an update from google that would pretty much make things impossible to get a lead gen site on google business maps since they're requiring video verification. Maybe I'm wrong but that's my current understanding,
Hey Anil! Great question and you’re 100% right that Google has been rolling out all kinds of updates. The good news is that, yes-absolutely local lead generation still works. In fact, it’s thriving. If you have other questions about lead gen or our program, feel free to book a call through this link: https://ippei.com Always happy to talk about the business model. I appreciate your comment-thanks for reading.