...with a huge emphasis on safety starting out. I was hit with a similar question today from a neighbor who has been out of work for almost six months, receiving unemployment compensation. We ended up in a discussion about web sites, because he knows what I do to make money.
The guy is not holding out much hope for finding work, so is looking for ways to eventually be his own employer. While talking, he mentioned looking for sites to buy that were already making money. After asking where (and being amused at the stories), I asked about starting investment. It was very low ($3,000 US) unless he used credit. (He thought it was a lot.)
About credit: He asked about buying sites with his credit card to get more money coming in faster. That was my fault as we were discussing multiples and I mentioned 2 or 3 years. He said he has a card that charges 14% and automatically jumped to: If a site paid off in 2 years, that was 50% return and should max out the card to pocket the difference.
My first reaction to that was "aargh" absolutely not starting out. I suggested -No- due to risk, but thought it might help to get opinions on that also. Thinking back, I'm wondering now if that answer was not quite as obvious as it seemed at the time. Oops, I'm rambling here, sorry, back to what to suggest:
What type of site is safest when first starting out? Should I recommend learning how to make a site profitable first, before he buys any? Should he try and diversify by trying to buy a couple sites at first?
Which sites have the least risk? What should he look for? Is there anything truly safe enough for a new site buyer with limited resources? Was my suggestion to not finance correct? What else needs to be considered?
Your advice on any of the above questions will help. I'll admit second-guessing what was suggested... and was going to add more of the discussion to this, but don't want to influence your thoughts. Thank you for any ideas on how to approach this.
P.S. I have been reading the posts in this section the past few hours for ideas, but most discussions involve queries from people who seem to know enough about what they are doing to not be considered new, except for a couple of threads that don't get into specifics much.