Quote: (12-12-2014 07:27 PM)Aliblahba Wrote:
How far would $40K go to build an online business for passive income? Say $20k initial investment and the rest dolled out over a year for ads, ect?
Let's assume you want to buy an existing turn-key website that someone else has set up and is making money. On a marketplace like Flippa (not the best place to buy by a long shot, but the biggest) you can buy such a site for a multiple of about 12 x monthly income.
So your $20k can get you a site that makes $1500-$2000 monthly, and the rest of your money can go towards promotion, PPC etc.
This would be putting your eggs in one basket though and it would be easy for someone new to get burned. Obviously, your nice $2k/month can suddenly tank or drift downwards. With time and study like any business though, you can build up a portfolio of sites, become a savvy buyer, and learn how to promote them cost-effectively.
So having the cash to buy a profitable site outright will be an advantage, but you will still have to learn the principles that the creator used in order to build such a site.
Dr Johnson rumbles with the RawGod. And lives to regret it.