Digital Dividends invests in and operates content websites on behalf of its investors. These websites provide an exceptional opportunity for those ready to invest in this emerging asset class.
By investing in businesses with low overheads and excellent cash flow, Digital Dividends can distribute dividends to its investors on a monthly basis.
Want to learn more? Read on…
What Is a Content Site?
Content sites use blog posts, web pages, videos, photos, illustrations & more to educate, inspire, provide insight & answer readers’ questions.
This content attracts readers via many sources, though the most common include:
- Google search (Organic/unpaid)
- Social media; especially Facebook, Pinterest
- Discussion websites such as Quora, Reddit, forums, etc
Monetisation of these sites is planned from their inception. These sites earn revenue via:
- sales commissions (affiliate marketing),
- bounties (lead generation),
- advertising, and
- selling virtual products or memberships.
Why Invest in Content Sites?
Content websites have been a popular way to earn money among digital marketers for over a decade now, however most prefer a “buy, grow and flip” model, similar to buying real estate in need of renovations. While this can provide great returns, it can also result in a feast to famine effect on cash flow.
Investors in Digital Dividends are more interested in acquiring a pool of income generating assets that are stable and pay a regular dividend – like a REIT (real estate investment trust).
We especially like this asset class due to its:
- lack of inventory and storage costs,
- extremely low overheads,
- stable cash flow,
- excellent ROI, and
- monthly dividends.
Why Is Now The Right Time?
We’re not day traders. Think of us as value investors that also keep an eye on trends.
We’ve been in the digital marketing trenches for over a decade and have seen the changes first hand. The following trends tell us that now is the right time to be investing in content sites:
- Currently there are few institutional investors, most investors want to “buy, grow and flip”, looking for a bargain and quick-wins. This is changing though, especially since around 2015. We expect valuations to increase as more institutional investors enter the market.
- Less than 60% of the world’s population use the internet today. Websites continue to see stable organic growth as more people use the internet.
- eCommerce revenue continues to grow with 2019-2024 annual growth rate expected to average 9.0%
- Demand for people’s attention increases year on year from advertisers. The “cost per click” from Google Search ads has increased by an average of 22.52% per year since 2012. By owning engaged audiences, we can continue to find new ways to monetise these audiences.
- As Google rewards established websites, not new websites there is a compound effect going on. Established sites receive more and more web traffic, while small sites have to work harder to catch up. Barriers to entry will only get higher.
- Demand is strong and supply is limited. Premium web properties are becoming increasingly valuable.
Why Don’t People Invest in Content Sites Directly?
There’s nothing stopping you from buying a website and operating it yourself. Our team members have done this over the years, however it represents a few issues:
- smaller websites are more volatile, and more prone to being bad investments
- due diligence is something that must be learned through experience. While we’ve seen it all, new investors can easily sink their capital into websites that we’d quickly dismiss due to their red flags.
- operating these websites is always more time consuming than you may think.
- few websites come with operating procedures. While sellers will tell you that “they are simple to manage,” what they don’t realise is that not all buyers are seasoned digital marketing experts.
If you read websites touting the “passive income” you will earn from investing in websites directly, don’t believe the hype. Though content sites will earn money while you sleep, they do need to be operated correctly. They are far from passive!
Why Is Investing With Us Better?
By investing in a portfolio of large websites with other investors through Digital Dividends instead of buying 100% of a small website, you gain access to:
- a fine-tuned due diligence process,
- economies of scale in operations,
- an experienced negotiations team,
- our private deal flow and connections with brokers,
- reduced risk,
- more predictable monthly income,
- the potential to benefit from a roll up strategy, where we can sell a large portfolio acquired for a low valuation to an institutional investor for a high valuation.