The Asset Value Factor of Working Online

How many times have you had someone ask you if it’s really possible to make money online, and how much money can you really make? What they really want to know is, is it possible to quit your full-time job and replace that income working online? Most of them are just testing the waters and don’t really have a clue so you can forgive them for not looking at the big picture: You’re building your own business and there’s an asset value factor you need to consider when working online.

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Let’s say you make $2,000 a month at your full-time job, working for “the man.” You work 40-60 hours a week and when you get home you’re tired and frazzled, but you still put in a few hours a week building a website.

After a while that websites starts earning a little money and soon you’re making $1,500 a month. Now you start thinking that maybe it’s time to quit your job, but you really should wait, right? After all, you’d be losing $500 a month and that’s not chump change. Especially in today’s economy.

But, this is probably your the first time you’ve ever tried owning your own business so there’s one important factor you aren’t taking into consideration. That website you’ve built that’s producing $1,500 a month in income is an asset. It’s your business and you own it – which means you can also sell it if you want. So let’s take a look at the numbers.

Quality websites that are consistently producing income typically sell for at least 12 times their monthly income. Sometimes as high as 48 times the monthly income. So a website that’s consistently making $1,500 a month would sell for at least $18,000. If you operated that website for one full year at $1,000 a month and then sold it at the end of the year you’d make $30,000 for that year. Your income from your $2,000-a-month J.O.B. would only equal $24,000 over that same time period. You’d actually increase your income by at least 20 percent.

Now, to take it a few steps further…

During that year while your website is bringing in $1,500 a month, if you weren’t working at that full-time J.O.B. You’d have time to build another blog or website. And since you already know what you’re doing, this one will start producing a higher level of income even faster than the first. And at the end of a year you’ll have another asset you could sell if you wanted to.

While you’re at it, you’ll probably be developing other business assets. The Squidoo lenses or Hubpages you create for linkbuilding purposes are also assets. As well as your email list you’ve developed, the ebooks and guides you’ve written, the videos or graphics you’ve paid for, and even some of the software and plugins you’re using on your site.

An online business is just like any other business – you have tangible assets that have value that add to your net worth. And you can sell these assets anytime you want because people all over the world buy websites. If you have a solid business going and you’re trying to decide if it’s safe to quit your job, don’t forget to include your online assets in the mix.

Stéphane Kerwer
Article written by Stéphane Kerwer (1995 Posts)
Bonjour from a french guy. My name is Sté Kerwer and Dukeo is my blog. I do most of the heavy lifting in here but from time to time, you may see some guest posts. To receive updates from Dukeo, follow us on Twitter or like us on Facebook.
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2 Comments (Add one)

  1. Kyle Nelson
    Kyle Nelson

    This post hit my core. Currently I am trying to decide if i want to sell one of my site. It is producing some income and could sell it so i could have a nice pay day. I think it all comes down to opportunity costs. In addition to where you are in life. If you are trying to go on a family vacation, sure selling the site probably sounds handsome but if you are looking long term and keeping it as an asset and hopefully a large income producer down the road then your view will be way different.

    1. Sté Kerwer

      Kyle, I think it goes down to evaluating how much work is needed to take that site to the next step, or to keep it at its current level. Moreover, you should evaluate the value of your own time, and see if you could make more money by using your time to do something else.