What is Digital Real Estate & How Does it Work?

Small Business - April 27, 2023
Couple in their kitchen working on their digital real estate business

Everything you need to know about the wide world of digital real estate

Most of us have heard of real estate before. It’s a parcel of land that you can own, as well as the structures and natural resources that come with it. So, what is digital real estate? It is the same concept, but it is set in the virtual world of the internet. It is any online asset that you can own, such as a website, blog, mobile app, non-fungible token (NFT), etc. In short, if it takes up space on the internet, it is a virtual asset that you can own and use for profit.

How does digital real estate work?

Couple looking at a legal real estate document.Imagine that you are buying a house

Let’s pretend that you are buying a house in the real world. You purchase the land it sits on, as well as the house itself and any resources that come with the property. Now you own that real estate. You can make improvements, rent it out, or sell it for a profit.

Now do that same thing on the internet

On the internet, real estate is just as valuable as physical property in the flesh-and-blood world. You buy digital real estate, like a website. You use that website to sell a product, write your blog, build your mobile app, or whatever you want to generate income. You can rent out that online space to other users, or you can eventually sell that website for a higher amount than when you bought it. Doesn’t that sound similar to a property transaction? That’s because it is!

Is digital real estate legit?

Yes. In fact, digital real estate market values sit in the trillions. Of course, just like traditional real estate, it is impossible to accurately predict the direction that the market will take in the future. But judging by the success it has had thus far, it is a legitimate avenue to invest in online resources and make money.

What are some in-depth examples of digital real estate?

Since the metaverse is so vast, it can be difficult to comprehend the possibilities that exist for owning property online. We’ve laid out a few common ways in which you could make a solid living with digital real estate:

Build or buy a website

This is the most basic and simple way to invest in some digital property. The larger the audience that you attract to your website, the more profit you could make when you sell the website to someone else.

Create a blog

The options for your blog are almost limitless. You can write diary entries, recipes, book chapters, or anything you want. The key is to build an audience for your blog. You can even start advertising and making money when people visit the ads on your blog site. If you wish, you can sell the blog once the audience is big enough for a buyer to be interested.

Use social media

You’ve seen social media influencers all over the internet. The reason they are so widespread is because it is relatively simple to make money via social media. Pick the area of expertise that you want to use to reach your audience. Once you gain enough followers, you can get paid to sponsor certain brands depending on your influencing style.

Dive into the virtual world of cryptocurrency and NFTs

These two pieces of internet property are similar, but not identical.

  • Cryptocurrency is a digital form of money. The currencies—also called digital tokens—are heavily secured via the process of cryptography, which makes it nearly impossible for these tokens to be counterfeit.
  • Non-fungible tokens (NFTs) are digital tokens like cryptocurrency. But unlike cryptocurrency, each NFT is unique. While people exchange cryptocurrencies like real-world money, people often keep NFTs and build a valuable collection.
  • Both cryptocurrency and NFTs are held and managed within a digital wallet—a type of mobile app or payment tool that lets you store assets, make transactions, and track financial activity.

As long as the internet stays around, digital currency and NFTs will always be here. That makes it a worthwhile investment to consider as you look at your digital real estate options.

Couple sitting on couch and reviewing examples of digital real estate.

Start flipping domains

Like flipping a house, flipping a domain means you buy an internet domain name for cheap (or even free, if possible), then turn around and sell it for a profit. You can buy domains from people who are done with them, or you can keep an eye out for domains that expire when their previous owners do not renew their registrations.

Remember to advertise

No matter what form of digital real estate you choose to generate income, make sure you invest in advertisements. Advertisements are like online billboards. With almost any product or lifestyle you are trying to sell, you can find related brands to sponsor you on your online space. You can even create your own brand and advertise on other websites, blogs, social media pages, etc.

How does digital real estate work in the metaverse?

First, you must understand the metaverse.

While Facebook’s Metaverse is a specific product, the actual metaverse is a very different thing. The metaverse is an alternate reality in the digital space. People can access the metaverse platform on any device that is enabled for virtual or augmented reality. Once in the metaverse, people can simulate real-world experiences such as working, playing, interacting with each other, and building their own digital identity.

You can buy and sell metaverse real estate.

Recall that we said you can work in the metaverse. One of the ways you can earn money is by buying and selling digital real estate assets! The metaverse is a virtual land with virtual plots where digital identities can meet, interact, and “live” when they are in the metaverse. As the metaverse becomes more popular, these pieces of digital property can become more valuable.

Interested in learning more about the metaverse? Read about the 4 legal concerns you should be aware of.

How to invest in digital real estate

Many people are afraid of trying to make money on the internet because they think they aren’t qualified. If you aren’t a computer wiz with years of coding knowledge, are you capable of generating income with digital real estate investing? The answer is yes!

You don’t need a degree in computer science to build a website or to start a personal blog. In fact, you don’t need any experience at all to dive into the digital world. You can easily find free programs online to help make starting your online site hassle-free. And if you choose to build a social media brand, the most popular apps will take you through the process step-by-step.

Mortgage rates and the physical real estate market go up and down with the economy. But the internet is only increasing in its potential to help people make a living and stay stable in the life and work they choose. Digital real estate may seem intimidating, but once you dip your toes in, you’ll discover that it can be a simple and profitable business opportunity.

Get the most out of your digital real estate hustle with LegalShield

Man viewing the LegalShield app on his iPhone.Once you enter the world of digital tools and online money-making options, you’ll discover a lot of legal ins and outs. LegalShield provider lawyers can help you get the most out of your internet business ventures. LegalShield offers you affordable access to a dedicated Provider Law Firm at a fraction of the cost most other lawyers charge.

Once you have a LegalShield Membership, you can get help with a variety of legal needs, depending on the plan you choose:

  • Consult your provider law firm about legal situations.
  • Have your provider law firm review important documents.
  • Create or update your Will to reflect changes in life, income, business and more.
  • Upon the provider lawyer’s determination, you may get help in drafting letters to clients, customers, etc.
  • And more!

Note: If you’re operating as a business, your LegalShield membership would need to include a business supplement.

Don’t try to take on the evolving landscape of digital real estate on your own. With LegalShield on your side, you can confidently step into the online world and take control of your future.

Find out more about how LegalShield can assist, protect, and empower you today!


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