8 Ways To Make Money From Digital Real Estate
Learning how to buy and invest in digital real estate may not be as complicated as you might imagine. Like any investment, there are a variety of ways to invest your funds.
1. Build Or Buy Websites
Building a successful website or buying an established one is the most common form of digital real estate investing. If you build a large audience, you can sell the website for more than you invested, earning capital gains.
2. Start An E-Commerce Store
Another popular digital property is the e-commerce store. E-commerce, short for electronic commerce, refers to the buying and selling of goods and services over the internet. You can sell products or services online through websites, mobile apps, social media or online marketplaces.
Many stores and companies switched from physical stores to e-commerce platforms during the pandemic. E-commerce stores offer the potential to grow more than physical stores because they can reach more customers, have lower operating costs and are relatively easier to manage.
3. Build A Blog
You can start a blog if you aren’t interested in running an e-commerce store. Once you build a following, you can make money through advertising.
Blog owners can try several revenue streams. With affiliate marketing, they earn commissions promoting services or products for other companies. They can work with other businesses to create and post sponsored content on their website. Bloggers can also build their brand and advertise on other websites to grow brand visibility and potential sales.
If you can build a big enough audience, you can try selling your blog and making a profit by handing over your audience to a new owner.
4. Rent Website Space
You can rent out digital real estate like you rent out investment properties. You can generate profits by renting a website. And at the same time, you’ll gain the capital appreciation the site makes.
5. Use Social Media
Making money on social media is another way of investing in digital real estate. Social media influencers or content creators get paid to produce sponsored videos and posts that promote products or services on their social media platforms.
The key is to know how to build a following. Pick a niche area of expertise or interest that current influencers haven't touched to build your audience. Like a blog, the more followers you have, the more opportunities you’ll get for advertising, sponsored posts, brand partnerships and affiliate marketing.
6. Flip Domain Names
Domain names can be worth money if you know what to look for and how to sell them. To get the biggest returns, look for domain names that are short and easy to remember, easy for companies to brand and end with the “.com” extension.
Like fixing and flipping homes, flipping domain names can be risky. To minimize your risk, you must fine-tune your sense of what will sell – and what won't. You likely won’t make any money if you buy a dud. But buy a premium domain name, and you may be able to sell it for thousands of dollars.
7. Buy And Sell Crypto Or NFTs
While the value of digital currency is a topic that seems to be perpetually up for debate, cryptocurrencies are the primary payment method in the metaverse. Cryptocurrency and NFTs get traded on blockchain marketplaces and offer unique investment opportunities. As more companies enter the metaverse, it may lead to wider adoption and growth in value for these assets.
8. Buy Virtual Land
Virtual reality has ushered in a new world of digital real estate. If you're looking for an investment that mimics investing in physical real estate, invest in virtual land in the metaverse. Decentraland is a popular platform for digital and metaverse real estate investments, but there are other platforms to choose from.
All digital real estate transactions are recorded on the Ethereum blockchain to prevent the replication of the real estate. A blockchain is a public database shared across many computers in a network.
