It’s no news that real estate has become one of the biggest industries, leading to a drastic increase in the purchase and sale of real estate as millions of dollars are being sent daily by average families and big corporations. Like every other sector, the real estate world has also undergone some changes and has moved from physical parcels of land to the digital world.
Today, anything can serve as a form of real estate and provide tremendous opportunities for the average individual, especially when properly harnessed. From simple blog posts to digital products, personalized social media pages with followers to an email list of loyal readers, there is more than enough for every individual to have their share of the wealth the digital real estate world can offer.
Are you confused about digital real estate? In this article, we dive deep into how digital real estate can benefit budding investors like you and me.
What Is Digital Real Estate?
For those new to the trends on the internet, digital real estate is a new trend and industry on the internet that’s revolutionizing 21st-century operations. Technically, digital real estate is called virtual landed properties that include all the domain names, URLs, websites and webpages, and any other digital assets centered around the real estate business that can be bought and sold for money.
Like social media apps where the developers earn by allowing their users to run ads, digital estate operates on a slightly similar module. Herein, the weaponized feature is legitimate ownership of a piece of land in the virtual world and does not require landowners to repair faulty appliances or replace broken pipes.
Lately, conversations around buying lands in the metaverse are increasing. However, digital real estate is more than virtual properties. There is more to these types of investments than flipping virtual lands for profits. It covers much more as there are various forms of digital estates people knowingly and unknowingly hold. More forms of digital real estate include:
Do you know you can become a digital realtor by owning a website? In the digital world, websites are platforms for businesses to grow their brand and business. If you own a website that acquires high clicks and traffic, you can sell the website for more. It is synonymous with buying a house in an underdeveloped area and selling it for a higher price when this area becomes more developed.
Digital products can range from books to podcasts and videos hosted on the internet. These digital products can also be forms of real estate where the creators monetize these contents and sell them to content creators.
Like websites, applications can also be forms of real estate. Android and iOS developers can create applications, advertise the application, gain thousands and users, and eventually sell it to higher corporations. Asides from websites, applications are rapidly becoming a popular digital real estate item.
Non-Fungible Tokens can be anything, i.e., ape pictures, pixelated tokens, videos, GIFs, short videos, or anything of value. NFTs are also another form of digital real estate, with the NFT market having a total market cap of over $41 billion since its public adoption.
Blogs, Vlogs, and Social Media Pages
Lately, personal social media pages have been one of the hottest forms of digital real estate as individuals or brands with huge followers are either being rented, affiliated, or even sold to large corporations. Influencers are heavily used by these companies because of their loyal fan base.
If a domain name, website, and even a social media page can provide the opportunity for their respective owners, an email list can also perform this. There is a high possibility of monetization for people with subscribers on their email lists.
Also, lots of people often sell their loyal collation of email lists to big companies or help them advertise their latest products and services for a token.
As long as there is a loyal audience ready to listen and take action when you share information, there is a chance of monetizing and earning money which is the aim of every digital realtor.
Why Digital Real Estate?
Although there are millions of other forms of income, digital real estate stands out as it offers immense benefits. Starting physical real estate requires resources as lands and buildings need to be bought or renovated. However, digital real estate is entirely different.
For instance, one must have soft skills like knowledge in display advertising, affiliate marketing, digital marketing, content writing, and marketing as they serve as a pedestal to a successful website. After that, one can decide to rent or purchase a website or domain from a website hosting platform for as low as $10. It inadvertently shows it requires a small startup cost.
Digital real estate requires little to no certification and can be started up without the approval of a governing body, making it one of the most accessible digital sectors. Usually, one must need a gadget, an internet connection, and some soft skills.
Like every investment, digital real estate appreciates as time goes by. Its easy scalability makes it a juicy form of business to engage in as one is assured of steady growth, as long as the correct advertising and marketing are applied.
Digital real estate can be combined with other businesses easily. Unlike other forms of income that require undivided attention, digital real estate allows you to engage in other activities.
Earning in Digital Real Estate
Rent Out Your Virtual Land
Digital real-estate owners can rent out their digital plots to big corporations for advertising purposes and event hosting in an eye-catching arena with loads of attention. So, they can rent out your space and pay per hour, earning you money and providing the visibility they need.
Virtual Land Flipping
Realtors can take advantage of this and engage in property flipping where they buy lands for a certain amount and sell them for a higher price. The Metaverse provides them a chance to earn better than flipping regular houses or lands.
Build a Website
For developers ready to channel their expertise into the digital real estate world, building a website from scratch is one of the best bets. Through this, you are solely in charge of the day-to-day running of the website and will also be responsible for the design, backend support, marketing, and advertising. The process is a bit tasking. However, it will help you realize better profits.
Buy a Website
Niche flipping is another way to make money. Here, digital realtors buy websites with little to no rating, clicks, or traffic, develop them into fully functional websites, and sell them at a higher price. It is similar to flipping houses where realtors refinish homes and sell them to families at a higher price.
Since NFT is a popular digital real estate, NFT flipping is profitable. Here, NFTs are either purchased for a lower ERH value or earned when certain persons are whitelisted. Here, such an individual holds the supposed NFT until the value increases in the NFT marketplace before selling it.
Invest in an Established Online Business
Many online businesses need investors with enough financial resources. You can invest in several of these established businesses in exchange for a higher APY or ROI after a certain period has passed.
Monetize Your Social Media Pages
For individuals with enough following, there are hundreds of brands ready to pay you for one service or the other, which is advertising in most cases. These brands offer cash, products, or other benefits, as long as the page represents the business.
Investing in Digital Real Estate in the Metaverse
Investing in digital real estate is similar to playing Monopoly, as the aim is to own as many profitable lands as possible. The strategic placement of your home determines its price in the future. For instance, a young person that purchased a digital plot near music legend Snoop Dogg is assured of an increase in property value as Snoop Dogg’s influence and popularity on the Metaverse increases his value.
Digital real estate is here to stay as thousands of corporations seek ways to put their business into this new virtual world. The real estate world is a multi-billion dollar sector, and there are great ways the internet contributes to the narrative. In addition, the metaverse is also a perfect tool, among many other digital real estates, to increase its capabilities as it provides immense benefits to the real estate world, realtors, and even regular individuals.
For investors, it serves as a ground to earn huge returns, and for the corporations, it serves as a form of visibility to increase their returns.
Theresa is a personal finance blogger. She writes content for busy professional women to take control of their money and investments. She enjoys reading, traveling, cooking, and writing. Her work has been featured on GoBanking Rates, Your Money Geek, Savoteur, the Corporate Quitter, Thirty Eight Investing, and more.