What Is Digital Real Estate and How to Make Money From It in 2023?

Real estate like digital plots of land, apartments, and advertising billboards is often sold in metaverses and games as NFTs. Just like with real-world property, these NFTs have different characteristics and factors that can greatly influence their value. These include location, distance from the city center, or the presence of a famous celebrity’s digital apartment in the neighborhood.

The Sandbox, an Ethereum-based virtual world, can boast many millions-worth of sales of their metaverse properties. In 2021, Republic Realm bought land there for $4.3 million from a video game company Atari SA. Just a week before that deal, a plot of digital land in Decentraland was sold for $2.43 million worth of cryptocurrency.

Another interesting case is a purchase of a virtual property in a neighborhood near Snoop Dogg’s digital mansion. An NFT collector paid $450,000 to become the artist’s virtual neighbor.

As technology and the online landscape continue to evolve, the value of digital real estate is likely to change and grow in new and unpredictable ways.

7 ways to make money from digital real estate

How to make money from digital real estate

There are various ways to profit from this new form of real estate, from registering and hosting domain names and offering other businesses advertising space, to buying and selling virtual apartments and renting out digital shops. Let’s learn more about 7 specific ways in more detail.

1. Advertising

Businesses that own digital real estate can generate revenue by selling advertising space and displaying advertisements on their websites or other digital properties, even billboards that exist only in the metaverse. This includes placing any type of ad — banner, pop-up, video, or sponsored content — on online platforms that receive significant traffic.

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2. eCommerce

Businesses can enable their customers to buy goods and services directly through their digital properties: websites, online marketplaces, or mobile apps. Digital properties also provide businesses with valuable data about consumer behavior and preferences, which can later be used to improve marketing strategies and product offerings.

3. Subscription

Organizations can present exclusive content or extra services for a recurring fee as a way to generate additional revenue and provide value to their customers. When customers receive services they value and feel that the subscription is worth the cost, they are also more likely to remain loyal to the business.

4. Domain name registration and hosting

Businesses can offer domain name registration and web hosting services to other companies or individuals. In this way, they can provide their customers with a convenient and affordable means of establishing their online presence and generating recurring revenue. Buying and selling premium domain names can bring a profit as well.

5. Moving real estate to the digital world

Companies can create digital twins of their own properties or provide other real estate businesses with such services.

Digital twins are virtual representations of physical assets. Once you have created a digital twin, you can use it to take your clients on virtual tours. Virtual real estate will give them the clearest picture of the property they are interested in and help them decide whether they want to buy it.

Other ways of going digital include placing your property in the metaverse or creating your own metaverse platform.

The process of moving real estate to the metaverse, or generally to the digital world, is quite complex and may require the assistance of professionals with expertise in digital media, technology, and real estate.

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