How To Invest In Digital Real Estate: 3 Tips On How To Make Money With Virtual Assets In 2024

August 23, 2023

To invest in digital real estate:

  • Decide the kind of virtual asset you want to own, like crypto or Metaverse land.
  • Research platforms that sell the type of digital real estate you want to invest in, like Flippa or Decentraland.
  • Create a plan that includes monetization strategies such as affiliate marketing, sponsorships, or paid ads.
  • Execute your method and increase the value of your digital property by creating UGC, developing your Metaverse land, or building an online following.

Digizuite suggests that revenue in the digital assets market is set to hit $56,4200 million in 2023. The average revenue per user is $84.73. The goal is to make virtual real estate valuable. So be willing to invest time and money. The more value your digital assets have, the more profit you can earn. This article will expand on the steps to invest in digital real estate.

How To Invest In Digital Real Estate

1. Decide on the kind of digital asset you wish to own.

As with any investment, there are risks and associated costs. Consider how much you want to spend investing in digital real estate and the profit margin you hope to achieve. Will this be a long-term investment, or do you want a quick turnover?

Learn as much as you can about the type of digital real estate you wish to own. How much does it cost? How long will it take to reach gains? Talk to an expert or other people who have invested in the digital assets you're interested in pursuing. Then weigh the pros and cons before making a decision.

2. Do market research and find a platform that best fits your goals for investing in digital real estate.

Use third-party tools like Google Trends, Yahoo Finance, or SEMRush. Assess things like; How does this digital asset make money? What are the current market trends? How high is the level of competition? What are the experts saying? Then decide on the platform that best meets your budget and goals.

How much are their fees? Do you need to commit to a certain length of time? When investing in digital real estate, do your research. Use a trusted site to avoid getting ripped off or losing capital. Then consider; Does the company have a competitive advantage in the industry? How hard is it for competitors to enter the market?

3. Develop a strategic plan for monetizing your digital asset and the steps you need to take to make it more valuable.

After you've picked the type of digital real estate you want to invest in, you need to create an actionable plan for making money with your asset. For example, if you buy and flip websites, consider the rank and rent business model. Build and rank generic websites that produce leads you can sell to a local business owner for profit margins as high as 85%-90%. You can start a blog and leverage affiliate links, sponsored content, or paid ads. Other methods include things like:

  • Lend Bitcoin to other people in exchange for interest
  • Rent NFTs to use in games or other niche platforms
  • Participate in play-to-earn games like Axie Infinity in the Metaverse to earn money
  • Buy a used YouTube channel on sites like FameSwap and grow an online audience. 

The key is to develop an online asset that gets attention or offers something unique.

4. Execute your approach to increase the value of your digital real estate.

To make money with digital real estate, you need to increase its worth. Create something that people are interested in, like a blog, or that solves a problem, such as a digital course. The goal is to own digital real estate that has value. Then you can generate positive cash flow with your monetization techniques. You can rent your assets for a fee and act like a digital landlord. Or you can sell your investment for profit.

What Is Digital Real Estate?

Digital real estate is any property on the Internet that you own. It can be any text or media formatted into a binary source. Unlike the traditional real estate industry, digital assets don't have tangible properties. You can't see or touch them. But they take up space online.

Digital real estate can be websites, YouTube channels, NFTs, or mobile apps. Data reports that revenue from digital assets will see an annual growth rate of 16.15% and be worth $102,700 million by 2027. The key is to give people a reason to check out your virtual land. Then you can increase its value, diversify your income and earn positive cash flow. 

How Does Digital Real Estate Work?

Digital real estate works a lot like the traditional real estate market. But instead of buying physical property, you're investing in online assets. This online business model offers an alternate investment option. 

For digital real estate to generate profits, you need to own online assets. The value of digital assets is determined by market demand. Other factors to consider are the number of people that check out your virtual property and the types of monetization techniques you use to generate income. 

How To Buy Digital Real Estate

To buy digital real estate:

  1. Choose what kind of virtual property you want to own.
  2. Determine your budget. Like physical real estate, digital properties can range in cost and associated risks.
  3. Find a platform that sells the virtual property you want to invest in
  • To start a blog, buy an aged domain or website on Flippa for $100+.
  • Buy cryptocurrency on a site like Coinbase with a minimum investment of $2 plus trading fees.
  • Purchase parcels of land in the Metaverse through a marketplace like OpenSea NFT for a ground price of 1 ETH ($1,300).
  • Grow a free YouTube channel or social media profile. Or buy a niche-targeted channel on a platform like SocialTradia or EazysSMM for $439 with zero copyright or community strikes. Look for ones that offer 1000+ real subscribers and 4000+ watch hours.

8 Ways To Invest In Digital Real Estate

1. Buy & Flip Websites

Find used websites on platforms like Flippa for $500-$5000+. Then check out the link profile using a tool like Spamzilla or Ahrefs. You want a site with a clean profile that you can monetize with strategies like affiliate marketing, a blog, or earn a monthly rental income by leveraging the local lead generation business model.

You can also build your own website on a platform like GoDaddy for around $15/month and host it on a site like Namecheap for $8/month. Hosting Tribunal reports that there are approximately 2 billion websites on the Internet. But there are only three spots at the top of the SERPs. The key is to rank your site and drive online traffic. Then you can make money with your monetization methods.

2. Buy & Flip Domains

Find used domains and URLs on sites like Hostinger or Sedo. Look for URLs that are short and easy to remember with a city name. Then check for a clean backlink profile with a tool like SEMRush. Pick domains with a favored extension like .com or .io.

Used domains can cost upwards of $10-$10,000. Data suggests that in 2023 there was an increase of 3.5 million domain name registrations. So do some research before you find one that meets your criteria.

3. Trade, Stack, Or Sell NFTs

NFTs can cost a few thousand dollars. But studies report that revenue in the NFT market is set to hit $1,601.00 million in 2023. You can buy NFTs from a platform like OpenSea. Then generate income with NFTs by trading, renting, leveraging play-to-earn games, or minting and selling your own. Increase their value by building or developing intricate artwork. You can store them long-term and earn interest. Data suggests that some NFTs can make $75+/day in interest.

4. Buy Or Rent Metaverse Land

Buying land in the Metaverse is a $660-$2000+ investment. You can buy land on sites like The Sandbox or Decentraland. Research suggests that the market is predicted to increase to $1.5 trillion by 2030.

To increase the worth of your land, develop it by building a virtual store or amusement park. The key to making money in the Metaverse is to own property where people hang out—the more popular the area, the more valuable your digital asset.

5. Invest In Cryptocurrency

Purchase crypto on an exchange site like eToro for a few dollars. eToro is monitored and supports exchanges from debit/credit cards, bank account transfers, or e-wallets like PayPal. Data says that over 4,000 cryptocurrencies are traded worldwide.

Bitcoin alone has gained 75% in 2023, and Ethereum prices are up 55%. Cryptocurrency prices rise and fall, much like the stock market. The idea is to buy when the market is low. Then hold until market prices increase to make a profit on your investment.

6. Create & Sell Digital Products

Digital products like eBooks, audiobooks, or PDFs take time to create, but they're a low-cost way to invest in digital real estate. The idea is to develop a product that solves a problem or focuses on an unserved market.

You pay with your time but can then sell your product over and over to generate passive income. You can sell digital products on sites like Sellfy. Automate the process with tools like FastSpring; you can make hundreds of dollars each month.

7. Develop & Monetize Mobile Apps

If you're tech-savvy, you can build a mobile app on sites like App Builder for minimal costs. But to outsource the process, have a budget of at least $5000-$25,000. The secret to making money with mobile apps is creating one people want to use. Data reports that 21% of Millennials open an app 50+ times per day.

Decide on your target market. Then learn everything you can about their wants and pain points. Monetize your app with ads, real estate crowdfunding options, sponsorships, or subscriptions. Or you can sell it to the highest bidder for a one-time profit.

8. Grow & Capitalize Social Media Accounts & YouTube Channels

Buy active social media accounts or YouTube channels for a specific target audience on sites like FameSwap for $100-$1000+. Then post high-quality content that answers questions people are asking online. The goal is to build your following. Then you can monetize your assets with things like banner ads.

You can also sell merch, ask for viewer donations, or use influencer marketing. But if you can drive online traffic to your site, you can earn $1000+ a month. Data states that Internet users spend 151 minutes a day on social media. And 52% of Internet users worldwide access YouTube at least once a month.

What Platforms Can You Own Digital Real Estate On In 2024?

Platforms you can own digital real estate on in 2024 include Sedo, eToro, The Sandbox, and Motion Invest. The platform depends on the type of online property you want to buy. For example, a marketplace like Empire Flippers or Investors Club sells websites.

You can buy used domains from Uniregistry. Venues like OpenSea and Axie Marketplace offer the sale of NFTs, while apps like Coinbase and Robinhood Crypto are top picks for purchasing Bitcoin. You can also buy digital real estate on social media or sites like eBay. 

But do your research. Use SEO tools like Ahrefs or SEMRush to check out a website's backlink profile or find out the authority of a domain. But just like investing in real estate, take precautions. The idea is to lower your risk of getting scammed and not lose money.

If you don't have investment experience, you can use a broker like Binance for NFTs and cryptocurrency or the Decentraland marketplace for a parcel you want to own in the Metaverse.

What Is Digital Real Estate For Sale?

Digital real estate for sale is an online property you can buy. A seller or marketplace will list digital properties for a set price. Then you bid on the one you want to buy. Once a bid is accepted, you own the rights to the digital asset.

Can You Make Money Investing In Digital Real Estate?

You can make money investing in digital real estate if you can create assets online that have value. Data Reportal says that global Internet users spend over 12. 5 trillion hours connected to devices and online services in 2024.

Like physical property in the real world, your digital assets appreciate over time. So digital real estate can be a profitable venture. But like all investments-when the returns are high, so are the risks. The idea is to buy low. Then increase the value of your virtual assets and resell them for gains. 

How Much Money Do You Need To Invest In Digital Real Estate?

You need to invest zero to hundreds of dollars in digital real estate, depending on the type of online asset you want to pursue. For example;

  • Build and rank a website like the lead generation business model for about $500. A monthly overhead of around $25 to cover the cost of hosting, your domain, and your tracking number. But once your site is at the top of the search engines, each digital property can generate $500-$2000/month.
  • Create a following on YouTube or social media for zero costs. Monetize it to earn $1000/month up to $1M per post.
  • Sell digital products with an investment of $100 or less. Sell for $20-$5000 per product, depending on the perceived value it offers people.
  • Grow a blog for $100 or less and your time. Make $5-$300+ per day.
  • Spend $150-$1500 on NFTs. Costs will depend on the intricacy of the artwork, the kind of blockchain used to mine, and the marketplace you choose.

Digital Real Estate Investing For Beginners

Digital real estate investing beginners should start by considering their long-term goals. Do you want a hands-off investment option and just be an investor? Or would you like to build an online asset that grows over time? Consider what skills you have. For example:

  • Are you interested in helping small businesses get more high-quality leads like the local lead generation business model teaches and own a digital rental property?
  • Do you enjoy writing and want to start a blog you can monetize?
  • Would you enjoy making videos and growing a YouTube channel?
  • Do you have an active online presence? Could you be a brand ambassador or leverage influencer marketing?
  • Do you have a talent or skill you could teach others with an online course or digital product?

Create digital real estate that you can capitalize on using marketing strategies like advertising, subscriptions, or affiliate links. Consider the experience your assets provide. Are you sharing value? Can you offer something better than what's already available?

Is there a trend you could capitalize on? The key is to learn as much as you can about your investment. What are market trends? Who is your target audience? There are only so many spots at the top. Virtual land has scarcity. But it becomes valuable when people want it.

What To Look Out For When Investing In Digital Real Estate

When investing in digital real estate, look out for the type of project you want to buy into. What is the competition? Will current economic issues decrease or increase its value? How long will it take to make a profit? Then assess the community. Is this an asset people want? Then research and consult with an expert or someone well-versed in the space.

What Are Digital Real Estate Reviews?

Digital real estate reviews discuss whether or not investing in digital real estate is legit or a scam. But 2024 data suggests that 70% of small-to-mid-sized businesses are investing more in their digital presence. Internet Live stats state that Google processes over 99,000 searches every second. (That's more than 8.5 billion searches a day). Own digital real estate to capitalize on a growing market. Then create a plan to build online wealth, diversify your income, and can achieve positive cash flow.

Who Owns Digital Real Estate?

The platform where your digital asset is housed officially owns the digital real estate. Virtual worlds like Cryptovoxels and Decentraland own the land. When you purchase online real estate, you are given a deed. The deed is proof that you own the property that 'lives' on the blockchain as an NFT or virtual property.

Another example would be buying domain names. The domain name is like your license and gives you the right to use the platform. However, site rules must be adhered to. Failure to comply with the policies could result in you forfeiting your right to ownership. The platform could also alter how they share data. Trends or market upheavals could change the demand or popularity, so it's important to diversify your portfolio. The key is to invest in several digital real estate ventures. Then you mitigate risk, and you don't rely on governed mandates from only one third-party platform.

Why Is Digital Real Estate Valuable? 

Digital real estate is valuable because it appreciates over time and has scarcity. So if you invest the resources to get online attention with your virtual land, you own digital assets people want to check out. Then you can rent your online space or sell for more than you paid and earn capital gains on your investment.

What Is Digital Real Estate Passive Income?

Digital real estate passive income is money your virtual property earns even when you're not actively working on them. For example, the rank and rent model focuses on creating websites in a local market and getting them to the top of the SERPs. Then they're in front of an online audience who is looking for the service they offer.

Those lead gen sites produce leads you own and can sell to a local business owner for a profit. A blog, social media account, or YouTube channel can generate passive income by leveraging ad revenue from affiliate links, paid subscriptions, or other monetization methods. Other options include digital products such as eBooks or online courses that sell over and over and yield passive income.

What Are The Pros & Cons Of Investing In Digital Real Estate?

Pros Of Investing In Digital Real Estate

A pro of investing in digital real estate is that it costs less than traditional real estate investing, like commercial real estate or buying a short term rental property.

Another pro of investing in digital real estate is an increase in acceptance and a shift of wealth trends that are now shaping the future.

A pro of digital real estate investing is the quick expansion of digital property and an ever-increasing online demand.

The biggest pro of investing in digital real estate is the chance to diversify your income stream, even if you have no prior experience as a real estate investor.

Cons Of Investing In Digital Real Estate

A con of investing in digital real estate is the risk and volatility of the market, which could result in a loss of investment capital.

Another con of investing in digital real estate is security and regulatory risks as the market evolves. These can include fraud, cyber theft, or technological issues.

A con of digital real estate is not knowing how to effectively market your assets to increase their value and get attention online.

The biggest con of investing in digital real estate is not understanding the needs and wants of your target audience.

Why Local Lead Generation Is The Best Digital Real Estate Investment In 2024

Local lead generation is the best digital real estate investment in 2024 because the focus is on the local market. There are 41,705 unique zip codes in the USA. Each one represents a local market with untapped potential. Build and rank micro-websites that get attention and produce leads.

Then you can sell those leads to local business owners. You own the website, the tracking number, and the leads. But your lead gen properties act like digital billboards. At the top of the search engines, they get in front of a ton of eyeballs. And because lead generation is a learned skill set, there's less competition.

Local lead generation

Once you understand the process, you can scale fast. Take this tree site above. I built this site in 2014 in around 10 hours. But this one web property has been making me $2000/month for almost a decade. That's a profit of $216,000. But this lead gen site is only one of over 80 I own and rent. Each generates passive income and has awarded me the luxury of financial and time freedom.

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Ippei Kanehara
Founder/CEO

$52K per month providing lead generation services to small businesses

Ippei.com is for digital hustlers, industry leaders and online business owners.

His #1 online business recommendation in 2024, is to build your own lead generation business.

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