If you're building AdSense websites, it can take a long time before you actually reach the point where you're earning significant income. If you have the available capital, it's often much faster to simply buy these AdSense websites.
How does buying AdSense websites for passive income work? Let's take a look.
The Market Places
There are a few different places you can look for AdSense sites.
The most active market place on the web is Flippa.com. Flippa creates eBay-style auctions online for websites. Site owners list all their stats such as traffic, earnings, referrers, backlinks and such. Then others bid on the websites based on how much they'd pay for them.
For over $10,000 apiece transactions, look through sites like BizBuySell and sort by "online" or "internet business."
How AdSense Sites Are Valued
AdSense websites will generally sell for anywhere between 6 months' worth of its income and 30 months of its income.
That's a pretty big range. What determines where a site falls on the valuable continuum?
First of all is longevity of the income. If a site's only been making $5 a week for two weeks and the owner puts it up for sale, chances are it'll only fetch 6 months' worth of income or so.
On the other hand, if a site has been earning $150 a month for two years, that site may very well get a twenty times or higher valuation.
The source of traffic and the source of the income can also play a factor. On Flippa, SEO traffic tends to be valued a lot higher than other traffic sources. AdSense also gets higher valuation than other revenue sources.
How to Find Profitable, Low-Risk AdSense Sites
Look for longevity. Avoid topics that might go out of fashion in a few months, such as sites about the latest iPhone. Avoid traffic sources that could dry up overnight. Avoid new sites. Avoid sites that depend too much on one referring site for all its traffic.
Try to find low maintenance sites. Some sites will flourish only when they're regularly updated. That's okay if the work can be outsourced, but if the content was written by the last owner and it's very highly specialized, it might be impossible for someone else to maintain.
In short, look for websites that you believe you can maintain and where the traffic and income will last. Finally, buy only one site at a time until you get used to the process. There are more balls to juggle than most people realize (domain transfers, database transfers, files, etc.) and it takes a few times before you get used to the process.