The Internet allows business owners and investors to build substantial value in online properties known as “virtual real estate.” These assets can grow in value just like non-virtual real estate and investments.
Who wants to be a millionaire?
This article explains how you can easily accumulate $1,000,000 worth of investment assets by building an online portfolio of income-producing assets. It is not hard if you know how, and plan for it in advance.
How to Calculate the Value of Your Online Business Assets
Calculating the value of internet properties is similar to the calculation for investment securities and investment real estate. However, there are other factors that influence value, such as perceived scarcity and collective demand.
The average stock investor doesn’t know that the value of a share in a public corporation is based on a formula which capitalizes the future stream of income (dividends). If the income stream is expected to be $10,000 per year then the investment asset might have a formula value of $100,000, depending on discount (interest) rates.
Sometimes prices far exceed formula values due to speculation, manipulation, and euphoria. The value of anything ultimately depends on what someone else will pay for it.
How to Increase the Value of Your Online Business Assets
An investment that generates $100,000 per year but requires you to work 50 hours per week does not have the same value as an investment that generates $100,000 per year and requires no work on your part. The second type is known as a passive investment. It has more value than an active investment, for obvious reasons.
You may have noticed that the internet provides great opportunities to create passive investment income, or “automatic” income. (We also call it perpetual income, residual income, or recurring income.) This is because many online business tasks can be automated.
To Create Lasting Value, Automate Everything
Once a website is set up it can be automated to produce income like a robot. The same is true of an email marketing system. If you can generate passive income from a robot you have a very valuable robot. If you build web properties that generate $100,000 per year you probably own $1,000,000 worth of investments.
Income from services requires more work income from a robot. Keep this in mind when you decide what type of internet business you want to start.
Source by Leo J. Vidal