The Business Models of Buying and Selling Websites
by Ben Cook
The business of buying and selling websites had drawn a lot of comparisons to the real estate industry. And, for the most part I think it’s a fairly accurate comparison. Instead of property we buy and sell domains. Instead of homes or buildings we buy and sell websites. Fortunately for us, there are also a few important differences.
Most notably, there is almost no barrier to entry which means you don’t have nearly the risk factor. Also, unless you’ve been living under a rock for the past year or so, you know the real estate market has taken a beating. Loans are hard to come by, the market is flooded with homes, and prices have plummeted. The “virtual” real estate industry of buying and selling sites, has suffered no such collapse.
Despite those differences, I’m going to use the real estate illustration to explain the 3 types of business models that make up the website industry.
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