Is The Next Big Alternative Investment Right Under Your Nose?

Savvy investors are constantly on the hunt for the next asset that can offer high returns without correlating to the tumultuous stock market. Traditional alternative investments like real estate and hedge funds have long held the spotlight, but a new contender is rising rapidly: online businesses. 

The allure of online businesses as an investment lies in their unique blend of scalability, reach and efficiency. Unlike brick-and-mortar establishments, online businesses can operate with lower overhead, wider customer bases and operate 24/7 across all time zones. 

A study by IBISWorld shows that the e-commerce sector continues to grow at a rapid pace, dramatically outpacing traditional retail growth. Online businesses also offer a level of agility and customer data accessibility unmatched in the physical world, leading to smarter, more profitable decisions.

When compared to traditional investments, online businesses stand out because of their quick adaptability to market changes and consumer trends. While real estate and commodities may require significant time and capital to adjust to market shifts, an online business can pivot swiftly, often with just a few strategic changes to its platform or marketing approach.

Profitability metrics for online businesses are equally compelling. Success stories abound of online companies being acquired for multiple times their annual revenue, a testament to the value investors see in digital assets. 

Trending: Why you've been left out of the insanely profitable business of website flipping until now.

Valuing an online business requires a nuanced approach that goes beyond just looking at revenue and profit margins. Prospective investors should evaluate the sustainability of traffic sources, the strength of the customer base, the reliability of supply chains and the stability of earnings. Due diligence is paramount, encompassing a thorough review of financials, operational processes and competitive positioning.

Understanding digital assets also involves assessing the technological stack, the brand’s online presence and the legal aspects, such as compliance with digital privacy laws and intellectual property rights. 

For those looking to invest, marketplaces like Flippa, Empire Flippers and FE International offer a range of online businesses for sale, from turnkey operations to fixer-upper websites with growth potential. 

For a more full-service solution, WebStreet is an established provider for investors who want to acquire and manage a portfolio of online businesses. Built on a foundation of efficiency, leverage and expertise, WebStreet is changing the game by allowing for fractional investment in online businesses run by industry-leading portfolio managers.

Online businesses are not just a fleeting trend but a viable and strategic alternative investment that can offer significant returns. They complement traditional investment portfolios with their distinct market dynamics and growth potential. For investors ready to expand their horizons, the digital landscape presents a world of opportunity.