While we are always searching for new investment opportunities, something that caught our eye the other day was a site called Empire Flippers. This site basically auctions and sells profitable internet stores. There are some stores selling for $1,000 and less. Other stores are selling for over half a million dollars!
We saw this as a unique investment opportunity because it allows the buyers to now run an online business. While this may seem a bit foreign to some, and maybe a bit reckless to others, let us explain why this might be the perfect option for you!
I know nothing about online business!
There are many different online businesses that require little to no upkeep once set on autopilot. Keep in mind there are many things we do not know. Most people do not know what a filtrete air filter is. Or what a filtrete air filter even does. But like anything, if you put the time in to learn something, you eventually can become quite proficient in the process.
A drop shipping site basically acts as the middle man during online shopping. You have an online storefront that people all over the world come to shop at. When someone purchases a product from you, you contact the supplier, and place the order.
Your profit comes from the wholesale price the supplier is selling you the product at, and the sale price you placed on your website for the item. That difference is all yours. You never have to have an inventory and you never have to ship the product yourself, the supplier deals with all of that.
Is there any risk for fraud?
Like anything in life, there is always a chance of dealing with those who are looking to make a quick buck and run. With that said, I would highly recommend using either Empire Flippers or a private broker who deals with online businesses to protect yourself.
Sites like Empire Flippers usually have a great process for finding and dismissing fake sites, or sites with inflated statistics looking to capitalize and make a quick buck. Also terms can be reached where the owner of the site must provide email assistance for 30 to 60 days as you get the grasp on this new site you are running.
Also another great feature is that when a sale is about to be done, you can simply place a deposit down (usually 5% of the sale price) and keep that in escrow. This way you can take a look at the site you are purchasing, and you have 5 days to decide to move forward with the deal or not. This protects you, the buyer, from any funny business that may be occurring. This also allows you some time to wrap your brain around this new internet business, making sure that this purchase won’t put you in over your head.
What should my first step be?
I think your first step should be to purchase a smaller, cheaper website as your first online investment. If you are just learning the ropes of internet marketing and Ecommerce stores, I do not recommend spending your entire 401K on a business that you may run into the ground within a year.
Take a risk on a small site that brings in some steady income each day. This site is one that you can learn from. Try out new techniques, change the layout of the site, use this site as your guinea pig. Best case scenario you double the value of the site and sell it off for a profit. Worst case scenario, the site crashes and burns, but your only out $500, not of tens of thousands.