Please keep in mind that we are mainly considering brand-building websites, not e-commerce ones. Brand-building websites usually do not sell anything, but focus on building an experience of a brand online.
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High competition
Food, health, cars, beauty, music, fashion, movies, technology, and home and clothing design have more sites than any other topics. If you are dealing with some of these topics you are exactly where your competition is.
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Hard work to create content
It will require a hard work to make the site stand out of the crowd in content in order to be noticed, to create traffic and to attract advertisements. Content has to be unique, informative and helpful. It also has to be SEO-optimized with intriguing titles that include keywords.
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Unpredictable time to appear in top search results
It may take more time than expected for the site to appear on the top Google’s organic search results.
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Extra expenses to generate traffic
To generate traffic and promote the site faster it might be needed to consider paid ads in the Internet or print media, developing different marketing campaigns and other promotions, which means spending more money.
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Non-predictable Return on Investments (ROI)
Like any other investments, putting money to a website startup involves unpredictability relative to the expected return. Understanding risk means identifying your own attitude towards it. The question is – what is the likelihood of occurrence of a huge loss? But it’s hard to answer it. Although by using statistic methods you can come up with some percentage, but in reality it’s almost impossible to measure the level of uncertainty in solid numbers.
But don’t despare: the more control you have over something, the more you can do with it if things go bad. If a website loses its traffic, at least there might be options: you can build new links, seek guest postings, boost your presence in social media, or put more advertising. It is always possible to make corrections to improve. Bottom line is if something goes astray with the website, it can be usually fixed in a matter of weeks or months.