Self-managed Content Websites Might Make Retail Investors End Up Broke, According To 2 Data Sets

Self-managed Content Websites Might Make Retail Investors End Up Broke, According To 2 Data Sets

Based on the EmpireFlippers findings from their “Lesser Known Digital Assets: An ROI Study” post, 2/3 of buyers struggled with decreasing ROI – Mushfiq from thewebsiteflip published data and analyzed 15 sites that were sold via the Motion Invest brokerage. 53% of the sites lost traffic after the acquisition, and thereby probably revenue as well Are self-managed Content Websites, on average, bad investments for retail investors? It clearly appears so, based on the facts and figures. But why is that? Let’s dive into the main 6 underlying reasons:

  1. Missing professional DD: Without proper Due Diligence especially first-time investors acquiring Content Websites with major issues, like PBN use. These skeletons in the closet might catch up with the buyer
  2. Missing resources: While buying is easy, running and operating a website required dedicated knowledge and experience in a couple of areas, from content to tech
  3. Missing focus: In the long run, it’s impossible to compete with passionate entrepreneurs unless you put a lot of energy into your acquired assets – which many buyers just don’t have
  4. Missing size: Think about websites as stocks. The big, established websites with a huge community, a multi-year long track record, broad content base, and active and engaged social media audience tend to be the blue-chip equivalent: low volatility, established, thereby lower risk. On the other hand, these super small websites in the 4- to 5-figure asset value range are the small and micro caps: quite early, not on the market for that long, high growth potential, high volatility, and high overall risk. While sophisticated and institutional investors are favoring the established ones, retail investors are limited in their choice and end up with the small sites, exposing them to higher volatility and overall risk
  5. Missing diversification: Without a portfolio you’re lacking the only free lunch of investing: Diversification
  6. Missing synergies: Last but not least running one or two websites won’t allow retail investors to tap into the vast synergies of owning and operating a portfolio in a vertical, be it content-wise, SEO-wise, or sales-wise. Think of Red Ventures: By practically owning the finance vertical they turned into a $2b revenue company That being said, we at TreasureHunter still believe in Content Websites as the most attractive asset class for investors if you switch from self-managed to managed, thereby avoiding all of the mentioned downfalls and mitigating the risks.