Website Real Estate w/Matt Raad

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Episode Description

Welcome to the Freedom Point Real Estate podcast! Jeremy Dyer welcomes Matt Raad to today's episode to share his expertise on online business including how website real estate allowed Matt and his wife Liz to connect to America while working from Australia and create high cashflow. They cover the process of buying and renovating websites, completing due diligence, common mistakes in online investing, and more.

Matt Raad is a business and website investor, Angel Investor, and leading educator in digital investments. Matt and his wife and business partner Liz Raad are recognized as the Australian experts in buying, renovating, and selling profitable websites and businesses. As well as being successful internet entrepreneurs and investors who own a portfolio of websites, they have trained thousands of people across Australia in digital marketing and online business success, and are sought after public speakers and educators on these topics.

CONNECT WITH MATT RAAD!

Website: https://www.mattandlizraad.com/

Digital Investors Website: https://www.digitalinvestors.com/

LinkedIn: https://www.linkedin.com/in/matt-raad/?originalSubdomain=au

CONNECT WITH JEREMY DYER!

Website: https://startingpointcapital.com/

Instagram: https://www.instagram.com/startingpointcapital/

LinkedIn: https://www.linkedin.com/in/jeremydyer

Facebook: https://www.facebook.com/startingpointcapital

Book a Call! https://calendly.com/startingpointcapital/discuss-investing-with-jeremy-dyer?month=2023-12

Summary

Tip #1: Start Small with Low-Risk Website Investments

"Start small like just buy a small little site under 500 bucks or under $1,000 and practice it."
Matt advises beginners to start with smaller, low-cost websites to gain experience before diving into larger investments. Starting small minimizes risks and allows new investors to practice due diligence and understand how to run an online business efficiently. As you grow your knowledge and skillset, you can gradually move on to larger, more lucrative ventures.

Tip #2: Focus on Evergreen Niches

"This strategy revolves around these big classic evergreen niches like pets, gardening, sport, or Outdoors."
Matt emphasizes the importance of choosing evergreen niches like gardening, pets, or sports because they maintain consistent traffic and interest over time. These niches often have passionate audiences and multiple opportunities for content creation, which leads to higher engagement and revenue potential. Evergreen niches also offer a stable foundation for long-term growth in online businesses.

Tip #3: Leverage SEO and Content Creation

"They realized they could fix up their SEO by putting on better content... so they just hired staff off Upwork."
The couple in this example boosted their gardening site’s profitability by hiring writers to create optimized content. SEO is crucial for growing website traffic organically, and hiring skilled writers or content creators can take the burden off the owner while maintaining quality. Understanding SEO and investing in good content can turn a small website into a profitable business.

Tip #4: Hire a Team to Maximize Efficiency

"They hired two writers... and now that thing makes them about four grand a month net."
By outsourcing content creation and keyword research, the couple increased efficiency and focused on scaling their business. Hiring a specialized team allows website owners to prioritize growth strategies and management rather than day-to-day operations. Investing in a small team early on can provide significant returns if managed properly.

Tip #5: Practice Comprehensive Due Diligence

"Always do your due diligence...there’s always skeletons in the closet somewhere."
Matt stresses the importance of doing thorough research before buying a website, ensuring that you know exactly what you’re getting into. Due diligence involves verifying traffic, profit, and the overall health of the site. Many beginners are swayed by seemingly impressive numbers but fail to consider hidden issues that could damage profitability down the line.

Tip #6: Look for Renovation Opportunities

"The renovation is you just build on the base that comes with the website."
Matt refers to the concept of "renovating" an existing website by improving its content, design, or SEO structure to unlock hidden potential. Just like real estate flipping, buying a website with room for improvement allows you to scale it into something far more valuable. This strategy is ideal for buyers who want to add value quickly by leveraging their skills.

Tip #7: Focus on Cash Flow and Profit Margins

"You got 80% margins here...they’re very high cash flow but they’re very easy to transfer."
Websites can provide high-profit margins, often with lower operational costs than traditional businesses. By focusing on cash flow, you can quickly identify which websites are worth the investment and which may need more effort to scale. High cash-flow websites also provide flexibility, allowing investors to easily transfer them into different structures for tax or legal reasons.

Tip #8: Avoid Large Purchases as a Beginner

"If you’re a beginner, you would not buy those because you don’t know what you’re going to do."
Matt advises against purchasing large, expensive websites as a beginner. While these sites may appear highly profitable, running them requires experience and advanced digital skills. New investors should first build their confidence with smaller websites before attempting to manage high-traffic sites that need extensive upkeep and optimization.

Tip #9: Be Prepared for Economic Volatility

"We made a lot of money in the 2008 recession... and we’re getting ready for that again."
Economic downturns create opportunities for savvy investors to purchase websites at lower prices. Matt explains how volatility in the market often leads to panic selling, and being prepared to invest during these times can result in significant long-term gains. Staying informed about market conditions is critical for capitalizing on these types of opportunities.

Tip #10: Know How to Exit or Transfer Websites

"That domain name can be transferred in less than five minutes."
Websites are unique assets in that they can be easily transferred or sold. Knowing how to efficiently exit an investment, whether for tax reasons or to reallocate capital, is key to managing an online business portfolio. Being able to quickly move your domain or sell a website gives you flexibility and the ability to adapt to market changes swiftly.