Boosting your retirement income by buying and renovating assets for sale or ongoing income isn’t a new idea. But the way that Liz and Matt Raad approach and teach this strategy is very 21st century.
If you are a person who likes the idea of updating your existing skills and increasing your income at the same time, you will find this interview with Liz very interesting. Liz and Matt are obviously not Silver Sages, but they are helping many older people to make a huge difference in their lives.
Renovating physical business assets
Matt and Liz started their career as zoologists, working with red kangaroos. It wasn’t long before they realised that this was not a path that would give them the lifestyle they desired.
They started buying, improving, and selling traditional businesses, starting very small and moving to much larger businesses as the years went by. During this time Matt also worked as a business broker, valuing and selling businesses of all types.
Teaching people to create online assets
As their young family grew the Raads wanted to change their lifestyle. They decided to use their knowledge of buying, renovating, valuing and selling business assets and apply it to online business.
Now they teach and help people learn the online skills needed to build a portfolio of assets that are income-producing and growing in value. I have noticed at their workshops that the audience has a wide age range, with many aged in their 50s, 60s, 70s. I spoke with people who were learning from Matt and Liz in order to improve their nest egg or retirement income. Others were already part of the growing trend of older entrepreneurs working online, challenging traditional retirement concepts.
What are websites worth?
This is the bit that astonishes me every time I hear it! The sale of a website is based on a multiplier of its profit. Currently, a site that is well-designed and has good content can be worth between 20 – 30 times its monthly profit. That means that a site earning $200 a month would be worth between $4000 – $6000. If we go higher, a site bringing in $5000 a month could be sold for between $100,000 and $150,000. If you consider even higher monthly income the numbers can make your eyes water!
Brain exercise is a bonus
A couple of people I spoke with were particularly enjoying the problem solving and the personal challenge that learning new skills had given them… “So much more fun than Suduko!” What a great way to keep your brain healthy and functioning well.
Some Silver Sage Success Stories
In my interview with Liz she shared three stories of older people who have been very successful by following this strategy of renovating online assets.
From a failing offline business to earning $100,000 some months
Gary and Lucy had worked hard in their business, expecting it to be their retirement plan. But when their business was disrupted by online competition they had to do something different. With Matt and Liz’s guidance, they started buying inexpensive websites, renovating and selling them. Gradually, they started buying more expensive sites as their skills and confidence increased. Now they are reaping the benefits with a site, purchased for $20k, and renovated extensively, regularly bringing in $100k a month. Yes, you read that correctly!
A property investment problem lead to a very successful idea
Cindy has Parkinson’s disease and had to give up her employment twelve years before meeting the Raads. Mike and Cindy were keen property investors, buying and renovating their property assets. But, like so many of us, Cindy couldn’t envisage what a property might look like after renovation.
A successful website usually solves a problem that many people experience. When they were planning their website project Cindy mentioned this design issue. Further research revealed that it was a common problem and suggested that there was a market for such a program. Working with specialists in design and IT, their website was built. They now have contracts with some of the biggest real estate companies.
Working full-time while building a directory site
Neil and Mary wanted to learn to build websites. They wanted to build a strong asset that would bring in a great retirement income when they retire. Their deep knowledge, skills, and connections in a particular industry are now being used to create a directory site for others in their industry. When it is complete this website has the potential to have huge monetary value to big players in the industry.
Not a baby boomer, but worthy of a mention
A client, working full-time as a tradesman, has built a site based on what he considered was needed by the people involved in his trade. He built the site, built up the traffic to the site, and has just recently sold it for $190,000.
How to transform a website into a valuable asset
Renovate the website asset
Most websites that are for sale have some issues that need to be fixed. When you understand what makes a website work well, appeal to readers, and gain value it becomes clear what needs to be done to renovate it.
By making a website look better and function better it should gain value. If good content is regularly posted to the site the value should improve. But these actions need to be done strategically. Just as you would do if you were renovating a property, you need to know what buyers want and what genuinely adds value.
Add some advertising
Liz and Matt teach their students to create or buy websites that solve a specific problem. Within the website they attempt to solve the problem by giving readers free access to quality information to answer their questions.
Also on the website there are links to Google advertisements and to Amazon products, or other affiliate products related to the website content. It is from these advertisements that the website makes money.
It’s important to keep in mind that you want the value of the website asset, and retirement income from the site, without you having to be tied to the job of working on it all the time. This is why the model that is taught doesn’t involve you selling any products that you might have to deliver to your customers.
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