Blogs monetized via ads/affiliate links sell for approximately 2.5x annual profits
. This isn’t great news if you’re looking to build and sell blogs. But this is great news if you’re looking to buy income.
To put it into perspective, with cap rates in San Francisco at 3.5%
, that means rental properties in San Francisco are selling for nearly 30x annual revenue
. A stock with a 5% dividend means that the stock is selling for 20x annual payouts to investors. Buying blogs takes a lot less capital to buy the same amount of income.
Plus, since many of you are cutting-edge web developers (you’re reading this newsletter after all), you have an edge when it comes to maintaining and improving sites. Maintaining sites definitely qualifies as a good side hustle
for web developers, because it helps you practice skills you use at your job.
Like how Arnold Schwarzenegger used his construction skills as an edge in buying real estate, maybe web developers should use their skills as an edge in buying websites.