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How Internet Marketing Compares to Offline Businesses - ROI wise

Discussion in 'Offline Marketing' started by SEOBS, May 7, 2014.

  1. SEOBS

    SEOBS BANNED BANNED

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    Let's talk some traditional investments like real estate (15-20% return), stocks (say 10-15% long term), interest bank (3% if you're lucky).

    Now I compared some to traditional business (assumed we don't rent an office and do the work our selves):

    car rent 500.000 euro 100.000 euro/jaar retour na 5 jaar 20% ROI
    real estate 500.000 euro 115.500 euro/jaar retour na 1 jaar 25% ROI
    buy company 500.000 euro 100.000 euro/jaar retour na 1 jaar 20% ROI


    Authority affiliate site 50.000 euro 50.000 euro/jaar retour na 1 jaar 100% ROI


    Simple Amazon affiliate website 50.000 euro 100.000 euro/jaar retour na 1 jaar 200% ROI


    Website Flipping 50.000 euro 400.000 euro/jaar retour na 1 jaar 800% ROI


    Car rent is based on 24 cars, real estate based on 10 condo's in Thailand and rent it out to people. I included the fact that the car's are worth about 60% after 4 years, and also the rising prices in real estate so it's pretty reliable.

    As for the affiliate sites, the authority site is based on a lifespan of 3 years, the simple Amazon sites half a life span of 6 months, so we would lose 2*50.000 euro which is already calculated in the end results so the end numbers are like yearly profits.

    Anyway, sure I forgot some little things here and there in each business but the major costs are covered.

    Quite a difference between real estate and site flipping ;)
     
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  2. asap1

    asap1 Jr. VIP Jr. VIP

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    So who's going to teach me how to flip websites?
     
  3. Trepanated

    Trepanated Supreme Member

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    Unless you have direct experience with all these scenarios you are essentially making these numbers up

    With stocks for example, just look at one of the richest men in the world, Warren Buffet.

    If his investments only gave him 10-15% return in the long term, he would not even make it into the Top 1000 rich list.
     
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  4. SEOBS

    SEOBS BANNED BANNED

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    You only have to look at the stock market and how many people lost small fortunes not long ago, and before that.

    There are always exceptions to the rule.

    I don't need to have experience in real estate to know what the current buy and rent prices are, same applies to car rent businesses.

    The affiliate marketing numbers are from personal experience.

    Why do you think most real businesses sell for 5-6x yearly profit? Perhaps cause it's in line with other investments like real estate? Just a global market working for everything in the offline sector.

    Before you come up with more exceptional cases, don't waste your time, it only makes you look stupid, instead better use your time to Google, then you'll have your answers and see that I'm not far off. Now back to bed before your mom starts yelling.
     
    Last edited: May 7, 2014
  5. SEOBS

    SEOBS BANNED BANNED

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    Flipping is probably the easy part.

    Who's going to teach you how to build sites that rank, stay ranked and make money ;)
     
  6. gabrava

    gabrava Newbie

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    Sure Internet Marketing does offer a higher ROI when Compared to regular businesses except that you have to invest a lot of time to make it work and also it is not time limited like the 12 hours working day. This is what MJ in the TMF calls Contrabble Unlimited Leverage
     
  7. asap1

    asap1 Jr. VIP Jr. VIP

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    My understanding of "flipping" is buying a site for $100 and selling for $200
     
  8. Trepanated

    Trepanated Supreme Member

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    Resorting to insults and false inferences is a better way to make yourself look stupid. If only you knew.

    To discuss your original points in a little more detail though:

    There is one major difference between site flipping and some of the other businesses that you have overlooked.
    With real estate for example, once you have made the investment you have a residual income. Invest once and get a return every year. That's a wise investment. Plus, on top of the yearly return you are also gaining from the appreciation on your portfolio. Double benefit.

    Whereas with site flipping, although there are great profits to be made, there is no residual income, You do the work, make your profit once and then start again on the next project. There is nothing wrong with that, but there is no residual income.

    With regards to Warren Buffet, he may be an exceptional case in that he is one of the richest people in the world, but making a better return than 10% in the stock market is far from exceptional.
    Also with stocks, not only does the price of the stock market appreciate, but you also receive dividends every year, which is effectively a residual income.

    I guarantee if you get to the point where you have made a sizeable chunk of cash from flipping websites, you will then start looking for places to invest that money for the long-term.

    And I guarantee a hefty portion of that investment will be in stocks, shares and property.
     
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  9. SEOBS

    SEOBS BANNED BANNED

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    Property perhaps, stocks no thanks, check graphs from the past 100 years, there is maybe 5-10% growth a year and sometimes downward trends that last like 20 years, not my thing, could be dead before I made a dime. Bet on the wrong horse and lose huge portions. Stock is like gambling, not my thing.

    As for one time investment, it doesn't really matter, yes with flipping you re-invest over and over but that's all taken into the calculation. Only one thing counts, that's how much return it gives per year. 20% vs 800%, although the 800% might not be sustainable for ever, I rather benefit from that as long as it lasts.
     
  10. SEOBS

    SEOBS BANNED BANNED

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    Once you have a system in place and cheap labor from India / Phillipines it really doesn't have to take much of your time.

    In those calculations I haven't included staff costs, except for the affiliate activities, there it's all included ;)
     
  11. SEOBS

    SEOBS BANNED BANNED

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    Ah ok, yes that's another way.
     
  12. Trepanated

    Trepanated Supreme Member

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    I think sometimes it is like gambling - in a market bubble for instance, people lose their reason and invest to make short term gains, purely because they see the market rising rapidly. This is dangerous because the upwards price movement is now purely as a result of speculative buying. That's a gamble for sure.

    But investing for the long-term is different. More strategic, more research and less speculation.

    I completely agree, it would be foolish to ignore a business that can give you huge returns in the short term, especially if there is minimal risk. But at some point you will hopefully be sitting on a pile of cash and that's when long-term investment planning is good.

    I think the important thing is diversity. Business can dry up, markets can crash, recessions and depressions happen.

    Diversity spreads the risk.
     
  13. raptor87

    raptor87 Newbie

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    awesome! i'm definitely following this thread.
     
  14. SavageX

    SavageX Junior Member

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    Im not sure on these numbers whatsoever. Its different for every business