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Is Digital Real Estate Legit? How Does It Work?

November 29, 2022

Digital real estate is worth over $5 million and is one of the best ways to make money online. But is it legit? Can you really earn a steady cash flow from digital real estate? And if so, how does it work? 

In this article, we break down the traits of online assets. Plus, how they can generate a passive income. We'll also take a closer look at the pros and cons of digital real estate. Why starting a lead generation business is the best way to leverage your online property. And what makes digital real estate so valuable in 2022.

What Is Digital Real Estate?

Digital real estate is any form of property on the internet. An online asset you own and can sell or rent for money. Much like physical real estate, virtual property is the native money of the internet. But once your digital real estates offer value, you can generate a steady cash flow.

However, to be valuable, your digital real estate needs traffic. So you need to provide a reason why people want to be there. It takes work upfront to get to the top of the SERPs. But once you're there, you hold the ticket to a passive income stream.

What Are The Advantages & Disadvantages Of Digital Real Estate?

Pros

Low initial investment and easy to improve

Fast appreciation and scalability

High-profit margins and cash flow potential

Cons

Challenging to get to the top of the SERPs

High level of volatility in the market and no real regulatory systems

Hackers and cyber attacks are a constant threat

What Are Types Of Digital Real Estate?

You can use digital real estate for anything from ecommerce stores to blogs. But if you want your online asset to be profitable, it needs to rank for competitive keywords. In addition, you need to drive traffic to your property to increase its value. So you need to understand what techniques will get you to the top of the SERPs. It takes skills like:

  • Content & Copy

  • Design & Images

  • Digital Marketing & SEO Strategies

Building an authoritative online presence takes time. (And a ton of high-quality content). So pick a topic you're interested in or know a lot about so you'll stay consistent

Once you master the tools you need to develop your digital asset and get it to the top, it becomes valuable. Now you own premium real estate. Digital assets that you can sell for profit or rent out to other brands and business owners. Like local lead generation, which builds and ranks websites that produce leads. Then you can sell your leads and secure a steady cash flow every month.

(Similar to a landlord receiving payment from tenants with physical real estate property). Of course, you need to do the work upfront. But once your site is ranking, it requires little to no maintenance. So get your systems in place, and you can just rinse and repeat. A few other popular ways to invest in virtual real estate include things like:

Domain Name & URLs

Types

Websites & Landing Pages that include things like niche blogs, sales funnels, content creation

Associated Costs

Domain names can be purchased from sites like GoDaddy, Namecheap, or HostGator for $10-$20 years + hosting, for around $3-$18/month. You can also purchase existing domains from sites like Flippa and Empire Flippers, which can cost anywhere from a few hundred dollars to millions

Time Commitment

Getting your site to the top of the pack takes a tremendous amount of time-especially things like blogs. (According to Growth Badger, there are over 600 million online blogs). So, you should plan on publishing informative and compelling content daily for at least 6-12+ months. Of course, you can use paid ads to get eyes on your site. But paid advertising costs are rising. So unless you have deep pockets, you need to pay with your time

Options For Monetizing

Affiliate marketing, sponsored posts, paid advertising (banners, AdSense, etc.), sell products, and members-only content

YouTube Channels & Social Media Accounts

Types

YouTube, Facebook, TikTok, Snapchat, etc.

Associated Costs

You can start a YouTube channel, or Social Media account for zero dollars. But you also have the option to purchase existing monetized channels from sites like UseViral or PlayerUp. In addition, you can grab social media accounts with loyal followers on platforms like FameSwap and SocialTradia. And costs for both can range from a few hundred dollars to thousands. (But do your research and read TOS before you sign)

Time Commitment

The time commitment depends on the platform. But consider that there are 37 million channels on YouTube. (Although not all of them publish regular content). So you should plan on posting consistent content for around 2 years. Some social media platforms are faster (especially if you have a viral video). But again, it's pretty cutthroat when it comes to the competition. So plan on investing 4 months to 2 years or more before you have that coveted following. Of course, you can start making money from your channel faster with paid ads. But if you're looking for a steady cash flow, you need to be prepared to put in the time

Options For Monetizing

Paid sponsorships, affiliate links, memberships, sell merchandise, leverage platform features, and funds

Funnels & Email Lists

Types

Lead Generation, Sales, Onboarding, Content

Associated Costs

A sales funnel will cost you around $100 per month and can be purchased from platforms like GetResponse and LeadPages. You can build your own email list for free with sites like MailChimp. Or you can buy an existing list for $100-$1000+ on platforms like UpLead and Lead411

Time Commitment

You can build a sales funnel or email list in as little as 6-12 weeks. (If you have an irresistible offer or can solve a problem). But you need to invest the time. And foster a relationship with your audience. They need to trust you to buy from you. So it will take longer than a few weeks before your campaigns are truly profitable. 

Options For Monetizing

Affiliate links, paid newsletter, info product, display ads, create different buying journeys

Digital Products & Apps

Types

Online Books, Subscriptions, Membership Sites, Webinars, Games

Associated Costs

You can develop your digital product for minimal fees and sell them on sites like Shopify or Sellfy. You can also develop an app for next to nothing on platforms like App Builder and Apphive. But if you lack the tech skills or need to outsource components of the building process, you should bank on a budget of at least $5000-$20,000

Time Commitment

You can develop a digital product (or at least the preliminary stage) in about 6 weeks. Of course, the more detailed your product, the longer it will take. (Sometimes up to 12 months). Depending on your tech ability and budget, developing an app might take a little longer. (Aim for 7-12 months)

Options For Monetizing

Referral programs, paid features, subscriptions, paid advertising, bundles, and upsells 

Creating valuable online assets takes time and effort, no matter your chosen platform. So you need to focus on your skills. 

  • What are you good at?
  • What do you like to do?
  • Do you enjoy writing content?
  • Or do you prefer video communication and webinar-style interactions?

Start by finding competitive keywords you can rank for with some ease with a Google search or Google Keyword Planner. Or third-party tools like Mangools and SEMRush to determine things like:

  • What are people looking for?
  • How can you fill a gap in the market?
  • Can you provide a solution to a common problem?

Digital real estate can solicit some serious coin. And it's not easy money. It takes time, patience, and consistency if you want to end up on top. But with lead generation, you focus on services people actively search for. And in a local market. (Which is way easier to rank than at a national level).

You're targeting a specific audience in a particular location. And with over 41,683 ZIP Codes in the USA, there's no shortage of opportunities. So you can build and rank sites that offer value wherever you see a gap in the market.  

How Do People Make Money With Digital Real Estate?

The key to making money with digital real estate is to figure out the best way to capitalize on your asset: 

  • Do you want to buy and sell virtual property like a real estate agent? (Like flipping domains)
  • Do you want to be a digital landlord and own online rental property to generate a monthly rental income? (Like the rank and rent business model)
  • Or do you want to monetize and hold your digital assets? (Like affiliate marketing and sales funnels)

You can choose one or a combination of a few. You don't need to invest a ton of upfront capital. You don't have a mortgage. And you can make significantly higher profit margins. (20-30+x more) than you would with physical property.

But you need traffic. And you need to develop a valuable entity before making money with virtual real estate. There's no formula on how long it's going to take. How much content you need to post. Or how many followers you get. So treat your virtual land like an actual business. Stay consistent and lead with value. Engage with your audience and build trust; you can make money with digital real estate.

Why Is Digital Real Estate So Valuable?

Digital real estate is valuable because people want it. But there's limited space at the top of the SERPs. So businesses and brands are willing to pay big bucks to get their product or service in front of as many eyeballs as possible. Of course, you need to learn the skills to drive online traffic.

But once your virtual property offers value. You own a tangible commodity in the digital world. One you can sell, rent or lease. This is the nuts and bolts of the local lead generation business model. Websites that act like digital billboards and bring in leads for local business owners. Natural barriers limit competition. And because you need the skills to rank, the market isn't saturated. You own the sites, and you own the leads. Sell those leads for profit and you can secure a passive income. 

Is Digital Real Estate Really Worth It?

Yes, digital real estate is worth it. Not only does online real estate cost less to buy than traditional real estate. But once you make your digital land valuable, you can make better profit margins. (Up to 10X higher-or more) than selling physical property. And you don't need to get lost in the intricate web of the Metaverse or Bitcoin to own digital assets.

You can generate a steady income stream with social media accounts and a YouTube channel. Or simple lead gen websites you rank on Google. There are so many ways to make money with digital real estate. So if you want to expand your income stream and are willing to do some hard work upfront, digital real estate investing is definitely worth it.

Is Digital Real Estate A Scam?

No digital real estate isn't a scam. It's a real estate investment opportunity on the internet. If you can develop a system to get your digital property to the top of the pack. Your digital assets can be a passive income stream. Figure out what online business best fits your interests and skill set.

Then decide how you plan to rank and monetize your virtual assets. Of course, Web 3.0 offers other options like investing in Metaverse real estate, NFTs, and Crypto. But there are still all kinds of ways to secure a steady cash flow on Web 2.0. Like becoming a real estate investor, owning a lead generation company, or building a YouTube channel. 

Why Local Lead Generation Is Our Number One Digital Real Estate Recommendation

Digital real estate is a chance to make money online. But it doesn't need to break the bank or take months of grind to get results. Instead, learn the skills you need to get your online assets to the top of Google search engines.

Then you can own premium real estate, which is the premise of the lead gen business model. Building and ranking websites like the one below are one of the best ways to invest in local digital real estate in 2022

Tree Care Lead Gen Site

You own the sites and the tracking number. And you own the leads. Each website only takes around 10 hours to build. (So you can scale quickly). Plus, there's no cap on how many lead generation properties you can create. Get them to the top of Google (sometimes in as little as 6 weeks).

And they don't need much maintenance after that. Your lead gen sites are like a resource. One that people are searching for and will go to repeatedly. Find a small business owner interested in expanding. Then sell your leads and start making some real money. 

Conclusion

Digital real estate is virtual land you own. It's the monetization of digital spaces on the internet. So not only does digital real estate investing diversify your income portfolio. But it can be a highly lucrative investment opportunity.

Of course, you need to take the time to research. And learn the skills you need to develop a valuable online asset. But once you have a proven concept, like creating lead generation properties. Then, you can earn a steady income stream and a ticket to financial 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 2022, is to build your own lead generation business.

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