Retirement is about living the way you want to live. You’ve put in the time and effort to increase your income, build your portfolio, help your family members get set up on their own and manage your expenses so that you don’t need to worry so much about where you’re headed and instead enjoy where you are. And hopefully, if you’ve planned correctly, you’ll be able to do it in one of the world’s many wonderful places.
However, there’s nothing wrong with setting yourself up with some ways to bring in some extra income after you retire. You’ll have more time on your hands, so why not dedicate yourself to something that brings in a little extra cash so that you can live even more comfortably. While there are lots of investments that can help you do this, one you’ve probably overlooked is websites.
The influence of the internet on our lives is growing exponentially, and it will continue to do so in the future. Getting in on this trend is a great way to expand your portfolio and increase your income after you’ve decided to stop working. Here’s how to make that possible:
Find Something You Enjoy Working On
While minimal compared to other post-retirement opportunities, there is a time commitment involved when you invest in websites. So, since you are supposed to be enjoying this time you’ve worked so hard for to be doing the things you’ve always wanted to do, make sure whatever sites you buy are related to things you like.
Even if they aren’t the most profitable opportunities, that’s okay. You’re not looking to supplement your entire income. So, for example, if you love golf or any other sport, or say you have always enjoyed cooking, look for sites that are connected to this niche. This way any time you have to spend working on the site is well-spent.
On top of this, make sure you outsource any tasks you don’t enjoy. If you like to write, find someone to help you with design so that you can focus on content. If writing posts aren’t your thing, there are plenty of hired hands available to help you.
In theory, you could outsource everything, so long as you’re bringing in enough revenue to cover expenses and whatever income you’re hoping to make. No matter what though, envision what you might be willing to spend a few extra hours a week on, and then pursue opportunities related to it.
Familiarize Yourself With How Websites Make Money
While we’re using the word website, we are really referring to online businesses—at least they should be run as such for them to be worth your time. And just as if you were buying a traditional brick and mortar business, it’s important you get to know the business’ model so that you can replicate it and grow.
Generally speaking, websites make money in one of three ways:
- Advertising: They either sell space on their website, or they engage in Pay Per Click advertising, meaning the site gets paid every time someone clicks on an ad, and even more when someone buys something after clicking on that ad.
- Affiliate marketing: This is very similar to traditional sales. Sites make recommendations or steer people towards certain products offered by other companies, and then they take a commission when someone purchases one of these products.
- Custom products: Not much different than a traditional business. The site makes something and then sells it to visitors. Many sites sell non-tangible good, such as eBooks, training programs, coaching services, etc. as the margins for these are much higher. Be wary of sites selling physical products as the logistics behind this can be a nightmare.
For your retirement income, you’ll probably want to focus on sites making money using one of the first two methods. They can be run more passively and require a lot less labor to maintain.
Make Sure You’re Getting a Good Deal
If you’re going to buy a website and use its revenue streams as retirement income, the last thing you want to do is to overpay for the site in the first place. Not only is this a bad move financially, but it’ll sour you to the whole operation and make it seem less worthwhile.
Take some time to go over what makes an online business or website valuable. This will give you an idea as to how much you should be spending when you decide to buy a website. And it will also tell you where the site is headed. Can you expect revenues to grow or at least remain stable? Or are they headed in a downward trend? Find this information out first to make sure you are getting yourself into something that will be worth it.
Get Some Help Buying and Selling
It’s easy to make the mistake that websites are different from other investments. You may think you can tell a lot about a site just by looking at it, but as with everything else in life, looks can be deceiving.
If you’re serious about buying a quality website that will bring in some decent cash, then hire a broker to help you find them. You could go onto sites such as Flippa to find a good deal, but on these platforms, there are no guarantees, and you run a lot of risk.
Brokers are better because they work with websites looking to sell by doing a valuation. This way, when you say you’re interested, they will give you a detailed look at the website so that you can make the decision on your own. These people are experts in buying and selling business, and to make sure you’re entering into a profitable venture, give some serious thought to enlisting their help.
If done correctly, investing in websites can be a great way to not only bring in some extra retirement income, but also to stay busy now that the immediate need to work has been removed from your life. Implement these tips to help you make this strategy a success.
About the author: Jock is an internet entrepreneur who has been buying, running and selling websites for most of his career. While retirement is still a long ways away for him, he knows ‘digital real estate’ will be a major part of his portfolio.