The EmpireFlippers findings as well as data from Mushfiq have clearly shown, that self-managed Content Websites are, on average, a bad investment with negative ROI for retail investors. Nevertheless, there are Aggregators and Funds emerging, pioneering the space of investing in digital assets and solving the underlying problems:
- Professional DD, executed by teams with M&A background and deep knowledge of the space
- Plenty of resources, as they’re well-funded, operated by an experienced management team with experts for dedicated areas like content, SEO, tech, design, etc., leaving the investors with a hands-off investment case
- Full focus, when product owners are installed and acting as “mini-CEOs”, taking the seat of the previous asset owners and running the day-to-day business of a couple of assets within the same vertical, e.g. 5 travel or sports website instead of 1, immediately leveraging synergies in terms of content generation or sales
- Doubling down on established, low-risk assets with a long history in the sweet spot, valued in the range of $300,000 up to $5,000,000, bringing together growth opportunities while mitigating the risks and volatility
- High diversification through the management of an international portfolio of websites in various verticals
- Leveraging synergies within the portfolio between the Content Websites and transforming them from isolated assets into a media company
So…is this working? Let’s check out the recent facts and figures at WebStreet (formerly Empire Flippers Capital):
The Content Website Funds 8001-8003, 8012, 8013 and 8016 have returned an investor cash yield in Q4 2022 ranging from 1.7% to 6.7%, which would transform into 6.8-26.8% p.a., not factored in the gains of the asset values which will be realized at the exit, that will come on top of this.
Compared to the results of self-managed, acquired websites, we’re seeing here a completely, diametral different picture in terms of financial performance within this asset class. From a retail investor’s perspective, it’s mesmerizing to see Aggregators and Funds like Flippa Invest or WebStreet emerging. Whereas institutional investors, PE funds, and media companies have used the very same M&A strategies for years to literally build multi-million and multi-billion dollar digital empires, now finally retail investors as well can tap into this alternative investment class, similar to fractionalized and democratized investments into art, cars, vine, real estate, race horses, VC funds, you name it.