Investing in Web Sites for Tax Benefits and Profit

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Investing in web sites can provide the same tax benefits as any home based business.  ALL expenses associated with the business of owning a web site is tax deductible.  Including, a percentage of your rent or mortgage, utilities, up of your home, miles driven for business, all business equipment, furniture and upgrades.  Not to mention, your cell phone, marketing, payments made to freelancers, online marketing cost and education involved in learning to make your business profitable.


Buying web sites is a popular investment,because the initial investment can be less than $500 for a new start up, HTMLweb site or blog, with original content and several streams of income which cangenerate annually, 10 times the initial investment
 Virtual real estate is less expensive thentangible real estate yet the investment process is very much the same.  When an investor buys real estate, a home,duplex or apartment building, all of the upgrades to the property helps toincrease the value of the real estate, and is added to the bases of theproperty.   The same hold true with a website.  Web site upgrades, bells, whistlesand gadgets, along with great content, increases the value of a web sitegreatly.  Many people encourage buyingwell established web sites, at a cost of one or two times the annual earningsof the site.
 While this is good, for people who haveexperience with owning, managing and growing web sites, it can be a nightmarefor a site owner who is not really sure how to continue the snowball effect andcontinue to generate the revenue that the previous owner was able to generate.
 HOWSMALL INVESTORS CAN PARTICIPATE AND LOWER THE RISK
 Web site investing is fast becoming anacceptable investment which can provide immediate monthly income.  And just as big business is moving into theweb site ownership market, investors with limited investment capital can alsoparticipate in this unique industry. 
 As long as a site has unique content, orprovides an extremely popular service, a small investor can increase the valueof his web site over time, and enjoy the same benefits as those who investlarge sums of capital. 
 
There are thousands and thousands ofstories where someone has loss their job, and started to blog, only to findthemselves earning more than twice what they earned on the job.  It all about: the niche, the content, theservice or product, (pricing) and the marketing of the site.
Banks and Investment Firms are alreadyinvesting in large websites.  Smallinvestors would do well to move forward as quickly as possible.
 
SEARCHENGINES AND INVESTMENT IN WEB SITES FOR PROFIT
 This is a touchy subject.  The latest update by the largest searchengine on the net, upset the bank accounts of many webmasters, websitedevelopers and web site owners.  People’sbank accounts actually went from say, $1000 and more per month to less than$100 per month for the small web site investors.
 More than ever, these recent changes haveweb developers and investors moving more toward affiliate income, rather thanpay per click income.  And rightfully so,the search engines actions, reminded each of us that we much build web siteswhich can with stand changes by the major search engines.  This means we must build precise niches witha high level of content.
 WHERETO FIND WEB SITES TO PURCHASE
 Investors can find thousands of web sitesto purchase by using the search engines. There are about ten major sites and many smaller niche sites which sellweb sites. 
 WHATTO LOOK FOR WHEN PURCHASING A START UP SITE
 1.       You wantto be sure the content is original, if not, you want to be sure the service orproduct is a winner in the eyes of web visitors.  You can usually determine this by what othersites with the same content are generating each month, and how many visitorsthey have.  Your job, should you decideto purchase the site, is to bring visitors to the site to generate your monthlyincome.
2.      You want to be sure that you will be acceptedinto any affiliate program BEFORE you purchase the site. 
3.      You want to be sure that the site works properly
4.      You want any and all information on how tomarket the site
5.      You want full ownership of the domain name andall content, including paid WP Plugins
6.      You want to set a budget for online marketing,regardless if it is $10 or $1000 a month, and stick to it.
7.      You want to be sure that the site is indexed oris capable of being indexed into the search engines.
8.      You want to be sure that the domain name has a cleanbill of health when it comes to the search engines.
9.      You want to be excited, even passionate aboutthe product, service and information you are offering on your site.
10.  You want to purchase from a company orindividual who will be there for you after the sale.
 WHAT TO PAY FOR ASTART UP
A start up web site can cost anywhere from $45 to $1500,unique content, several streams of income. Websites which are sold on major web site for sale sites, usually have asuggestion for the cost of web sites, based on:
1.      Domain name, Age of Domain
2.      Content / Niche
3.      Traffic
4.      Backlinks
5.      Site’s Popularity
6.      Page Rank
7.      Monthly / Annual Income
 It is harder to set a price on a start up because there isusually no monthly or annual income to set the price.  It really depends on the amount of work thathas gone into the site, and what the site offers to you as a new web siteowner, and to your web visitors.
 HOW TO PURCHASE A WEBSITE
You want to be sure that the domain name is transferred intoyour name.  Therefore you also want to besure that the person, who is selling the site to you, has the legal right to doso.
You can use PayPal, especially if the seller is “verified”that way if there is a problem, you can contact PayPal and request a refund.
If the web site is over $250 USD it might be a good idea toplace the transaction into escrow.  Theescrow fee is a percentage of the transaction value, and is well worth theinvestment.  The buyer places the moneyinto escrow.  And when the buyer andseller are completely satisfied with the transaction, then the escrow companyreleases the funds.  It is a great wayfor the buyer and seller to protect themselves.
 DO YOUR HOMEWORK BEFOREBUYING A START-UP WEB SITE
1.      Do you know how much traffic the website gets?
2.      Do you know how much money the website makes?
3.      Does the web site work properly?
4.      Is the topic, keywords and content popular?
5.      How will you get visitors to your site?
This article was provided by VirtualRealtyInfo.com – a placewhere virtual real estate is available for investment, tax benefits andgrowth.  Visit www.virtualrealtyinfo.com  now.  Virtual Realty provides a step by step plan to market your website, regardless if your marketing budget is $10 a month, $100 a month or $500 a month.  Web visitors, Google accepted, Alex counted.