Why "Rank and Rent" Websites are the New Rental Properties

If you're an experienced investor, you know that there are a lot of similarities between rental properties and lead generation websites. Both require a upfront investments, both can be quite profitable if managed correctly, and both can be a huge headache if you're not prepared for the challenges that come with them. However, real estate properties typically cost 20% down and $100,000s, and rank and rent websites, literally cost $10/year for your domain, and ~$8/mo for hosting if you do all the work. 

While there are certainly some key differences between the two (we'll get to those in a minute), the fact is that lead gen sites are quickly becoming the new hot investment for savvy online investors.

​Here's why:

1. The barriers to entry are low. 

In order to get started with rental properties, you generally need a fair amount of capital. You also need to be prepared for a lengthy and complicated approval process from the bank.

That's not the case with lead gen sites. You can get started with just a few hundred dollars, and there's no approvals or loans necessary. Just buy a domain, build out your site, and start ranking in Google!  Well, you might need to get 'approved' as a verified business on Google, but that's a lot easier than getting 'approved' from a bank. 

2. The ROI can be massive. 

With rental properties, you're looking at a solid 8-15% ROI on average. But with lead gen sites, you're looking at the potential to make 3-5X that! We've seen clients make over $100,000/year from sites that they've invested less than $2,000 into. Typically, you can buy a currently profitable lead gen site, and if you don't mess it up, you can make your money back within 2 years.  

That's unheard of in real estate.  See how a buyer of a lead generation websites made a 70% ROI in their first 12 months of owning it. 

3. They're much easier to scale. 

This is one big reason that pushed me to building lead gen sites, and to stop pursing the acquisition of more real estate.

Once you have a lead gen site that's making money, it's relatively easy to replicate that success by building out more sites in similar niches or locations. It's much harder to do that with rental properties. 

4. You don't have to deal with tenants and contractors! 

This one is pretty self explanatory; with lead gen sites, you never have to worry about late night calls from angry tenants or having to fix broken toilets! All you need to do is focus on ranking your site and collecting your checks each month :)

Well, I guess the 'tenants' would be the service providers that pay you for the leads, but there's no hot water heater that goes out during winter.  Worst case scenario is you see a drop in leads and you can't collect payments as fast from your website renter.



Conclusion: 

If you're looking for a new investment opportunity that has the potential to earn high returns without the hassle of traditional investments like rental properties, then "rank and rent" websites may be exactly what you're looking for. With their low barrier to entry and massive earning potential, these types of websites are quickly becoming the new hot investment for savvy online investors.

So, what are you waiting for? Get started by buying one today that is already generating leads. 

Or, if you wanted to see our previous real estate venture, visit Holmes Real Estate Group.  Want to see one of our lead generation websites?  Check out Denver Concrete Contractors, or San Antonio Window Tint.