Buying an online business

Notes Section

Most of us know that you can buy a brick & mortar business, but Baby Boomers may not be aware of the resources available when buying an online business. In this interview, we talk with Empire Flippers about how Baby Boomers can purchase an online business that is already making money.

 

Want to learn more about Empire Flippers, fill out our brief form today.

1. Affiliate Marketing

Considered to be one of the most effective ways to make money online, affiliate marketing essentially means promoting other people’s stuff on your website.

The Amazon Affiliate program for example, lets you promote Amazon products in a variety of ways, which entitles you to a percentage of any sales they make to people coming from your site.

2. Sell Banner Space

If your traffic levels are impressive enough, you can sell banner space to other companies within your niche.

It’s as simple as reaching out to them with offers, or setting up an advertising page with all the details. You can also add placeholder banners that invite people to contact you in order to “Advertise here”.

3. Write Product Reviews

If your website or blog revolves around a particular industry, there are likely software or hardware products that you can review.

Reach out to the companies behind those products, and offer to review their stuff in front of your large audience – for a fee. The company in question may even provide you with the software or hardware free of charge.

4. Pay-per-click (PPC) Ads

As the name suggests, a pay-per-click ad entitles you to money every time one of your visitors clicks on a banner.

To cut to the chase, your best bet here is Google Adsense. Google lets you specify the type of ads you want shown on your site, and then gives you the code to insert into your sidebars and content. They will then pay you for every click they get. It’s as easy as that.

5. Sell a Digital Product

While selling your own product may not be as immediately simple as the rest of the items on this list, it has the potential to bring in a lot of revenue over a long period of time.

For example, you could put an eBook together (which is essentially a blog post on steroids), and make it the focal point of your website. Depending on your niche though, the possibilities could be endless.

6. In-text Ads

Don’t want ugly banners cramping your site’s style? In-text ads may be the way to go.

By signing up with a popular in-text ad company like Intextual, certain words within your content will be automatically hyperlinked to relevant websites. Visitors who hover over the link get a preview before they click, so it’s often welcomed as a relatively safe and noninvasive advertising process.

7. Become a Consultant

If you’ve been harping on about a subject for a number of years, you may be considered as an expert in your field.

If that’s the case, you could begin offering professional consulting services within your niche.

For example, if your blog revolves around health and fitness, you can charge for personalised diet plans, workout schedules, and so forth.

8. Sell Courses

If you’re enough of an expert to consult, you’re also in a position to create and sell online courses.

You can pre-record them and sell them as downloadable files, or you could have them hosted somewhere, so you can charge your audience for access.

Zippy Courses is a relatively new yet popular way of creating, hosting, and selling online courses  through WordPress. Although Shopify’s Mindflash app also gets the job done.

9. Host Live Workshops

Don’t think your audience will go for pre-recorded courses? You might want to try live broadcasts instead; where you can teach, interact with your audience, and answer questions.

You can host live webinars and workshops through free platforms like YouTube and charge your audience for access. You can also charge companies to sponsor your broadcasts.

10. Start a Job Board

This one may not work for everybody, but If your website possesses a thriving community in the right market, a job board could rake in the cash.

As an example, the Pro Blogger Job Board – the go-to job board for budding bloggers – was started by Darren Rowse after his website Pro Blogger soared to digital stardom.

11. Auction Your Website

Looking for a quicker buck, with none of the long-term stress of managing a growing website? You might want to consider selling your web property altogether.

People regularly pay good money for websites with potential, and EmpireFlippers is a great place to start

0:00
this is boomer income ideas dot-com and
0:04
now here’s your host Dan Farnsworth I
0:07
walk in this week’s segment of boomer
0:09
income ideas dot-com you know in the
0:12
past we talked with an acquisition
0:13
specialist that help us locate and
0:17
purchase business whether it was online
0:19
or offline and also has nowhere to go to
0:22
find an offline business multiple
0:25
listing but most of us don’t know where
0:28
to go to find an online business and
0:30
today we’re going to talking to Justin
0:32
Cooke the co-founder of empire
0:34
flickr.com which is what i consider to
0:37
be the multiple listing of the online
0:40
business world and so with that let’s
0:42
welcome Justin to the show
0:44
hi Justin thanks for joining us today
0:46
hey Dan take some attract me on
0:48
appreciate you know I’m really excited
0:50
to talk to you today because a couple
0:52
months ago we talked with someone who
0:55
was involved in franchise and he was a
0:58
franchise consultant so we help people
1:01
figure out how to invest in traditional
1:04
traditional businesses then about a
1:07
couple weeks ago we we had someone on
1:09
from real-world network Kathy Becky who
1:12
talked about real estate investment
1:14
whether that was a long term play for
1:16
investing in income properties or also
1:20
doing some kind of flips not necessarily
1:22
with her but we talked about those two
1:24
different kind of concepts with regards
1:26
to seniors boomers and seniors investing
1:29
money in something that is going to
1:31
create an income and whether that’s a
1:34
long-term play or flipping play
1:36
we’ve been through those two scenarios
1:38
which are more traditional and now we’re
1:41
talking about online and you’re the
1:43
expert and that’s that’s why that’s
1:45
that’s why i was happy to get you on the
1:47
show today also make good to be i know
1:49
you are just listening to your interview
1:51
I episode of a Chapman shuttle is
1:53
fantastic so if you’re your guests
1:55
haven’t seen now when I recommend you
1:56
listen that was file because it has a
1:57
lot to do with what we’re talking about
1:59
two legs so I appreciate that God before
2:02
i get started in other questions can you
2:04
give us kind of a little bit of
2:05
background of empire flippers
2:08
how you guys got started what you do you
2:10
know why
2:12
how did you guys get to be that niche
2:15
player where you’re the go-to guys to
2:16
find online businesses to buy yes we
2:19
have kind of a strange story but i’ll
2:21
just say i’m a partner company called
2:22
empire flippers and partners com we help
2:25
others by cell and invest in websites
2:28
online businesses and these are anything
2:30
from like the you know I high 42 low
2:33
five-figure up to the seven-figure
2:35
businesses so how we got into this is an
2:39
interesting story my business partner
2:40
Joe and I used to work for a mid-sized
2:44
SEO company in the u.s. is back in
2:46
2008-2009 found an opportunity where we
2:50
need to hire some people we had
2:53
connections in the philippines for a
2:54
previous company we’d run and start
2:57
outsourcing a lot of the work to the
2:58
Philippines eventually we moved the
3:01
Philippines kind of run that company
3:02
ourselves and take over the company quit
3:04
our jobs and outsourced owns started
3:07
running outsourcing company out of the
3:09
Philippines so that’s kind of how we got
3:10
our start in you know like
3:13
entrepreneurship and this this type of
3:14
entrepreneurship I’m that company ended
3:17
up cutting back on its not too long
3:19
later and so we need to look for
3:20
something else to do we start building
3:22
websites and is profitable kind of cash
3:24
flow earning websites and selling them
3:27
rights we build them up for a year then
3:29
sell them off we realize you know we
3:31
weren’t just building cash flows were
3:33
building many assets so these assets
3:35
made money they were sellable and there
3:38
were investors interested in purchasing
3:39
them that’s kind of how we got started
3:41
selling website for these smaller
3:43
businesses and when I say small I mean
3:45
super small we would build a website
3:46
that would make a hundred dollars a
3:48
month right two hundred dollars a month
3:50
so this is like a a large businesses the
3:53
tiny little cash flow but people are
3:55
willing to buy this they’re interested
3:57
in it Mr process for building those
4:00
sites got worse like our success rate
4:03
was bad
4:05
we kind of lost are like roi on building
4:08
out these sites so what we did is we
4:10
pivoted we had all these buyers now that
4:13
were interested in buying these cash
4:14
flows we said look why don’t we let
4:15
other people wear their process is
4:17
working cell on our platform
4:19
so why don’t we let them sell the people
4:21
we have buyers people interested in
4:22
hungry to buy these websites and
4:24
businesses we can produce enough for I
4:27
we can produce you have in our why that
4:28
makes sense anymore
4:29
why don’t we invite other people to do
4:31
it so we start brokering websites and
4:34
online business sales in 2012-13 about
4:37
two hundred thousand dollars in sales in
4:40
2015 we did 4.7 million and we’re on
4:44
track to you about 9 to 10 million in
4:46
2016
4:48
wow that’s that’s incredible growth I
4:51
think everything I saw something about
4:52
you just were
4:56
you’re an ink 55 thousand right now and
5:01
we’re like 168 or something like that
5:03
yeah yeah we yeah our growth was just
5:06
crazy honestly is 161 inc 500 I’m we’re
5:10
gonna double from 2015 2016 ish i’m so
5:14
we’ll be on again we might drop down a
5:15
few points because it’s not quite as
5:17
fast growth but doubling your business
5:19
in the years of bad so what we can’t
5:20
complain
5:21
well one of the things that is really
5:23
really interesting to me is the the
5:28
business if and yet you can go from a
5:32
very small investment in something and
5:34
kind of build that up or you can go for
5:37
the big play that’s already in place and
5:39
and you know if you have the capital to
5:41
do that that’s fine
5:43
you’re you’re able to play in both
5:45
worlds but more importantly and the
5:48
thing that really caught my attention is
5:50
the return on investment as in regards
5:54
to the purchase price of these assets in
5:56
other words from what i can see most of
5:59
the assets are going out about two to
6:04
three times earnings is that is that
6:06
about right on the lowest we talked
6:09
about in terms of monthly generally so
6:11
we say maybe on the low end is 22-24 so
6:15
a little under two years earnings up to
6:18
two years is kind of like the low end on
6:20
the high end yet 3c looking probably 30
6:22
to 36 acts on that kind of higher-end
6:25
again you can even go out from that
6:27
you’re talking about like recurring
6:28
revenue on seven or eight figure
6:30
businesses
6:31
it generally in that you know 527 figure
6:34
ranges to be somewhere between 20 to 35
6:36
x
6:37
yeah so just kind of rule of thumb if I
6:40
was looking at investing $100,000 in
6:44
into an existing business i should
6:46
expect that that will that will return
6:48
somewhere between 25 to 30 three
6:51
thousand dollars a month or in other
6:53
words i’ll have a twenty-five to thirty
6:54
three percent return on my investment in
6:58
that on an annual basis as opposed to
7:01
investing that same amount of money in
7:02
real estate that might return eight to
7:05
ten percent correct that’s right and you
7:07
get the time you get both the same
7:10
benefits to get the appreciation because
7:12
the longer businesses around the higher
7:15
multiples you tend to get rights of the
7:17
business has been around three years
7:18
opposed to one year you’re going to get
7:21
a higher multiple which leads to a
7:22
higher valuation even with the same
7:24
earning so you’ve grown five percenter
7:26
ten percent a year just being around
7:28
additional two years in the key value
7:31
ok so all those things sound great
7:35
now let’s talk about the downside I’m 60
7:38
and so I came from a generation where we
7:41
were given the VCR and then we couldn’t
7:44
program in ourselves you know yeah i
7:46
mean literally if you talk to anybody my
7:48
age and you talk about that they’ll be
7:51
kind of embarrassed but she obviously
7:52
say yeah I never could figure out how to
7:54
how to program it to record my my TV
7:57
shows when I wanted it to
7:59
we kind of came into this world we were
8:02
we were given the the the pc when we
8:04
were in our early twenties we were given
8:06
the VCRs and things like that but we
8:08
didn’t grow up with them so yeah you
8:10
know so when we talk about the online
8:13
world for a lot of this that’s like
8:15
talking about a moonshot i mean that’s
8:18
that’s like talking about technology
8:20
that we know is there we know we use it
8:24
everyday we go on Amazon we buy things
8:27
and and research
8:29
information site so that we can compare
8:31
things but we we don’t know what’s
8:34
behind that give me a little bit of your
8:39
input on what you think about that i
8:42
mean do you think that this is something
8:43
that you really need some kind of
8:46
background in technical background in or
8:50
do you think that it’s this is something
8:52
that the technology has gotten to a
8:54
point where you know someone like me can
8:59
pick up on it being able to modify a
9:01
website be able to figure out how to
9:04
deal with the Amazon and Google and Bing
9:07
and all those kinds of things
9:09
what’s your what’s your thoughts on that
9:10
so look let me be just totally clear I i
9:13
wouldn’t say this is for everyone so not
9:15
everyone can get into this is something
9:17
everyone has a skillset you asked like
9:19
do you think like do I think you could
9:21
do it i think you could do it right
9:22
because running video interviews you’re
9:24
getting these upload to YouTube got a
9:26
nice site and you were telling me before
9:27
the show that you’ve got someone does
9:29
that for you
9:29
yeah I don’t care about that you figured
9:32
that piece on you found someone who can
9:34
do it for you who does it well your site
9:36
looks good
9:37
so you’ve got you you’ve got the skill
9:39
sets to hire people and get them to do
9:41
things correctly so there are some
9:42
either basic skill sets you have to have
9:44
or you have to know how to find the
9:46
people that have the skill set I was
9:48
listening to one of your your podcasts
9:50
when with the when you’re talking with
9:53
Joe and you’re talking about workshops
9:55
tell me a little bit about your
9:57
workshops and and you know again what
10:00
what’s the basics that you need to know
10:02
to be able to get into a workshop and
10:05
participate say okay i can understand
10:06
this
10:07
yeah so let me let me just add on to
10:09
that previous answers briefly and then
10:11
we’ll talk about workshops and another
10:13
thing i mention is that what people are
10:15
finding a lot of value in is partnering
10:17
so there are opportunities for them to
10:19
be the investor in the deal are there
10:21
maybe to investors and they work with
10:24
someone who does have those skillsets
10:25
there’s a lot of value in that so we
10:27
actually sell websites online businesses
10:29
to people that are in those kind of
10:30
partnerships for this too passive
10:32
investors and there’s one active manager
10:35
and they’re the ones of the skills going
10:37
to hire the people to run it
10:38
maybe they put in ten percent and they
10:40
get thirty percent ownership or forty
10:41
percent ownership
10:42
and the investors are passive and on the
10:44
rest you know there are other kinds of
10:46
steel structures you can set up and be a
10:48
passive investor in these businesses so
10:50
there’s lots of ways to do it with zeros
10:52
my mom could do that might be a passive
10:54
investor in the deal on there are ways
10:56
for the net to participate but not to
10:59
buy them and run themselves so in
11:01
talking about workshops one of the
11:02
things we’ve done is we’ve you know I’m
11:05
I based in Southeast Asia my business
11:08
partner isn’t middle I’m inside already
11:10
i’m from the Roman guy i travel often
11:14
and so we’ve done workshop here we’ve
11:16
gone back to us and done a few workshops
11:18
where we kind of layout the process for
11:22
buying an online business like some of
11:24
the things you need to look for
11:25
indulgence you check the business
11:27
because there are you an inherent
11:29
specific risk for online businesses they
11:31
wouldn’t have with a laundromat for
11:33
example so we talked about that we
11:36
talked about you know the process for
11:38
buying a business we talk about
11:39
negotiating the deal a lot of those
11:42
things and really it’s uh away
11:44
it’s a way for us to kind of explain the
11:46
business in the market to people who
11:48
don’t know it as well anyway first drum
11:50
up business for potential buyers or
11:52
sellers right so that’s one of the
11:54
reasons we’ve done that we’ve done maybe
11:55
six or seven of those a couple in Asia
11:57
and a couple in the US are what we plan
11:59
to do more
12:00
ok just the other day I was listening to
12:04
one of your podcast so number 123 which
12:09
I really like because you were talking
12:11
about looking at that deals that had
12:15
already been done as opposed to talking
12:17
to buyers who are about to buy a deal
12:19
and yeah you were talking with the guy
12:23
named jay and he had gone through this
12:26
process before he bought from you of
12:29
looking at 300 deals and he was working
12:32
with his chaplain who we had on the show
12:34
last week as a matter of fact great guy
12:36
and they went through this whole due
12:39
diligence process and Jay happen to be
12:41
from the IT world he was familiar with
12:45
computers and and he did that you know
12:47
in in his quote day job and he ended up
12:51
buying
12:52
a site that i thought was kind of
12:53
interesting because it was some kind of
12:55
supplement that you take after you know
12:58
long night out called rave something
13:00
oh my gravy yeah it’s a the weirdest
13:04
thing so brave his Braves all the rave
13:06
right with the kids these days or
13:08
whatever so they you know it’s it’s
13:10
basically a hangover pill
13:12
yeah you’re crazy nights and it’s like
13:14
kind of like hangover pillar cure for
13:17
them
13:17
I mean to buy it was a weird purchase
13:20
you know I don’t you listen two part
13:21
interview where I said you know I
13:23
thought it’d be a lot of work like him
13:25
in forums and kind of like dealing with
13:26
the community and he was like this like
13:29
flattery is like now not really i’m not
13:31
doing that was like that’s gonna happen
13:32
like that like it’s just funny like my
13:34
own preconceptions that I bring the deal
13:37
with the broker I’m like oh you know
13:38
you’re gonna have to do this and this
13:40
and this and then talking names like I
13:41
didn’t do anything that I grew it anyway
13:42
like pockets or that’s crazy
13:45
well that and that’s one of the things
13:46
that really caught my attention with
13:47
this is that it
13:48
that didn’t seem like something that a
13:51
guy like Jay would have looked into and
13:53
by that what I mean is you know when we
13:56
think in terms of what we might want to
13:58
do online we think well what do we like
14:01
you know if we like fishing we want to
14:03
probably do something that has something
14:05
to do with either selling fishing poles
14:07
or you know or selling charge to the
14:10
fishing spots are doing something along
14:12
those lines enough if if we like
14:14
furniture where we probably never like
14:17
decorating we probably like to have
14:19
something that has something to do with
14:20
buying and selling furniture that kind
14:22
of think how does someone kind of zero
14:24
in on their online business that they
14:29
think might work for them so generally
14:31
you know people like to think of it in
14:33
terms of niches right like i want to buy
14:35
a business in the fishing net right
14:38
where that specific like it’s really
14:41
hard to find a fishing business we
14:44
generally recommend for them to look
14:46
more in terms of price range and like
14:49
general industry like I’m looking for
14:51
you on home furnishings are home
14:54
improvement not you know fishing or not
14:57
lampshades read like looking for website
14:59
about lampshades might be looking a long
15:01
time like I might find the right one
15:03
that’s the right price range for me
15:05
so instead of focusing on very specific
15:07
niches it’s good to open up to maybe
15:09
like industries and look more in the
15:11
kind of price range like I know that I
15:13
have you know sixty to a hundred
15:15
thousand span or I know that I have
15:17
220,000 spends like I want to look in
15:20
that range right and not at very
15:22
specific niches ok would you say that
15:27
this business takes the same type of
15:29
capitalization and planning that a
15:33
traditional business takes and by that
15:35
what I mean is you have a business that
15:38
actually tune that I kind of picked out
15:41
because they have seemed to have a good
15:44
price and they also have climbing sales
15:46
i notice that number number of years one
15:48
of the things I really love about your
15:50
site is that you get a lot of
15:51
information click on more information
15:53
about this particular listing and even
15:55
though you won’t give the name of the
15:57
actual business itself you’ll show them
15:59
will show that the graphs of the number
16:03
of impressions are views over a period
16:05
of time the income that was generated
16:07
the gross profit that was generated so
16:09
you can really get a pretty good feel
16:10
for what the business is doing now what
16:13
we do is we require deposit is
16:16
refundable deposit for any reason a
16:18
potential buyers pay a deposit and we’ll
16:20
share the URL and all the information
16:22
including you know our earnings and
16:24
everything about the business
16:26
ok on number four 0717 you’ve gotta
16:31
listen as under the shopping category i
16:34
guess it has something to do with with
16:36
the coupons
16:37
there’s a they evidently have some kind
16:40
of online coupon just to distribution
16:43
which I know my girlfriend would look
16:44
but this this is a four-cell 420 6667
16:49
dollars
16:50
yeah the listing for 0717 argue link
16:54
available today I’m not sure would be
16:56
available when when this error so it
16:59
goes live but wobbling to anywhere they
17:01
can check out the details
17:02
yeah but it makes 920 dollars a month
17:05
and that’s an average over the last six
17:07
months so again soon as you go to 11 our
17:09
boxes good on the 17 Bucks it at various
17:12
the 920 on average i was built in
17:15
October 2015 so it’s relatively new
17:18
it’s monetize via the amazon affiliate
17:20
program which basically means for me was
17:22
kind of like unsure about that are you
17:24
know it doesn’t understand modulation if
17:27
someone goes to the website they search
17:28
for google search for let’s say ceiling
17:30
fans and they come on the one of the
17:33
pages on the site they see a link to
17:35
potentially buy ceiling fans they click
17:36
on it they go to amazon and they look
17:39
for ceiling fans on amazon to buy one
17:41
this site will get a small Commission or
17:44
bonus for that ceiling fan purchase that
17:47
the consumer made also basically it’s
17:49
just common arbitron people search for
17:50
things on google see it on your site
17:53
click through amazon purchase you get a
17:55
small commission fee right and so these
17:57
sites are trying to your ranked and then
17:59
eventually get affiliate deal on the
18:01
niche is like brands and discounts and
18:04
coupons in the kind of shopping that’s a
18:06
bunch of our brands mentions the URL is
18:10
a dot co.com that’s it it’s it’s a 29 x
18:16
multiple meaning you know 1920 thousand
18:19
dollars monthly multiply that by 29
18:21
months and you get the price of your
18:23
just under twenty seven thousand dollars
18:24
and it seems like it’s the type of
18:27
business that you have no inventory and
18:29
so other than figuring out how to market
18:33
it and grow that traffic there doesn’t
18:36
seem to be a lot of additional capital
18:38
necessary so if you bought this for say
18:41
twenty six thousand dollars and
18:44
capitalized for about thirty thousand
18:46
dollars with so you had four five
18:47
thousand dollars in reserve it seems
18:50
like you could operate that business now
18:52
contrast that with the home furnishing
18:55
idea which is 440 741 and that business
19:00
is 335,000 almost 336,000 to to purchase
19:05
it but if then but it’s in a furniture
19:07
niche so that means inventory typically
19:11
that means you know a number of
19:13
additional costs that are involved you
19:16
know actually actually it’s not because
19:18
here’s the reason why so it’s in the
19:20
furnace in the home furnishings niche
19:22
like that’s what the site talks about
19:24
but it’s monetize the exact same way
19:27
so it’s making it basically people
19:29
search for for things in the home
19:32
furnishings niche and a particular niche
19:33
I’m not going to mention it yeah I don’t
19:35
like fire but bathroom so yeah yeah so
19:38
it’s bathroom related people search for
19:40
those keywords and then they find a
19:42
review of those particular items click
19:45
through amazon once they make that
19:47
purchase this site gets a commission on
19:49
any purchases made on amazon now they
19:51
can purchase anything they can go there
19:53
and purchase whatever electronics or
19:55
anything and you get a commission
19:56
because they’ve been cookie to your site
19:58
so yeah for this site in particular it’s
20:00
not an e-commerce site where you hold my
20:02
soror inventory it’s not an amazon FBA
20:05
or fulfilled by amazon river to ship or
20:07
inventory to amazon it’s an amazon
20:09
affiliate site so it’s just making money
20:12
as an affiliate so it’s actually the
20:13
same modernization and the other one 407
20:16
17 and 40 741 your point stands though
20:20
Dan is that there are businesses that
20:23
have inventory so like if you see one of
20:26
our listings as amazon FBA with the FDA
20:29
means fulfilled by amazon that means
20:30
that someone took product or inventory
20:32
often from China
20:34
ah they shipped it over by boat or by
20:36
air and then have it placed in a minus
20:39
with Amazon so it’s all being stored
20:42
with amazon and they’re selling via the
20:44
amazon marketplace so some as you search
20:46
for something on amazon EC for sale
20:48
that’s actually someone’s listing from
20:51
their inventory being held with amazon
20:53
so those businesses are interesting but
20:56
you’re right there’s a capitalization
20:57
issue right or this is a cash-flow
21:00
crunch everyone i know who owns an FBA
21:03
business they they can do really well in
21:05
this scale very quickly but they require
21:07
a ton of cash
21:08
yeah so the people that are growing
21:10
those businesses are constantly dumping
21:11
their their profits and cash flow back
21:13
into inventory right throw them up those
21:16
businesses are a little different and
21:17
there’s a bunch of different online
21:19
miles actually share you will linger
21:21
give you a link to talk about like the
21:22
11 different online business models
21:25
ok amazon filthy it’s one being amazon
21:27
FBA one being adsense it really goes
21:30
into depth about each one
21:31
ok that that’d be very helpful because
21:33
that’s that’s exactly what what I’m
21:36
getting at what are the different
21:37
categories uh you know some seem to be
21:39
just totally virtual
21:41
you know I’m we what you mentioned is as
21:44
far as the affiliate program with an
21:47
amazon i use that all the time i don’t
21:49
think i’ve been in a real store other
21:51
than home depot for quite a while
21:53
everything else ya buy through amazon
21:55
and and in that case as you mentioned
21:59
you’re getting kind of a commission but
22:01
you’re not actually capitalizing the
22:03
inventory whereas on the FB a program
22:06
especially if you’re buying from China
22:07
it could be a very large capital
22:10
requirement and you’re you’re buying a
22:12
container full of something that you may
22:14
get stuck with if you don’t care if
22:16
you’re not careful
22:17
let’s assume that I’m a 60 year old guy
22:21
and I say Justin I’ve got a hundred
22:23
thousand dollars that I i want to invest
22:25
in something I’m not sure whether i want
22:28
to invest in something that i’m going to
22:30
try to purchase improve and flip or I’m
22:34
going to invest in something that i’m
22:36
going to try to maintain long-term for
22:39
the income stream very much like real
22:41
estate incidentally you know whether
22:42
whether you’re flipping real estate or
22:44
you’re purchasing it for a long-term
22:45
hold this is kind of very very similar
22:48
to that
22:49
yep but you know I’m a 16 year old guy
22:53
coming out of corporate where i was in
22:55
middle management
22:56
I you know I knew how to use application
23:00
software packages but I didn’t know what
23:03
was behind them and in the marketing
23:05
department there always seemed to be
23:06
young kids are just fresh out of puberty
23:09
who were talking about bounce rates
23:12
quality scores an FBA and i have no idea
23:15
what the hell they were talking about
23:16
yeah and I say Justin I really want to
23:20
get into this though I think that I need
23:22
to get into it because I i think that
23:24
it’s the way of the future and I don’t
23:26
want to go buy a sandwich store
23:28
I you know I I don’t want to buy a
23:30
traditional business that I’m forced to
23:32
go to every day and there’s a location
23:34
that i have to go open up and and if I’m
23:38
not there I’m going to put somebody
23:39
there
23:39
so what do i do what’s the best
23:42
opportunity for me to do that and at
23:46
what point do you do you look at my
23:49
background my personality and just say
23:51
damn this is not the right thing for you
23:53
there are limits right so you have to be
23:56
able to work with wordpress and in
23:58
general here’s what we say that you have
23:59
to understand what pressure and domains
24:02
and hosting and you have to have at
24:04
least understanding of the general types
24:07
of modernization and i’ll give you that
24:08
link with 11 different types so you can
24:10
you give you kind of a basic
24:11
understanding your audience and then you
24:16
have to have some kind of traffic source
24:18
so either you understand organic SEO how
24:21
to get ranked on Google so that your
24:23
website ranks on google so people don’t
24:25
get coming to the traffic you have to
24:27
understand how did you pay traffic the
24:29
AdWords pay for traffic and and did the
24:32
keywords up you have to understand
24:33
social media you know either facebook or
24:36
twitter users and all those we have to
24:39
have one of those options has to be a
24:41
good one for you so you know where your
24:43
traffic strategy is how you’re going to
24:44
get traffic and increase your traffic if
24:47
you don’t have those skills it’s gonna
24:49
be really difficult for you to buy this
24:52
business and grow it would be perfectly
24:54
frank you’re better bat if you don’t
24:57
have those skills to learn them so you
24:59
can buy a 20 to 40 thousand dollar
25:01
website right on which is lower risk to
25:04
lower earnings but it lets you try
25:06
unless you get started if not and you’re
25:09
you you don’t want to risk you want to
25:11
learn first
25:12
there are plenty of places to go on one
25:14
of them would be cloud living
25:16
there’s a guy named tongue that teach
25:17
the course of clouds of a dot-com snitch
25:20
pursuits dot-com Spencer Hawes of there
25:23
goes into depth about how to build sites
25:26
from scratch and so you know they they
25:28
can teach you the skills and tools you
25:30
need to get started from scratch but you
25:32
can like jumpstart your learning buying
25:34
a business twenty to forty thousand
25:36
that’s already doing that you’re gonna
25:37
need some of those skills you can’t just
25:39
buy cold yes the seller will ace
25:42
mentioned this on your interview the
25:44
seller will transition you
25:45
yes they will but if you give you know
25:47
nothing and maybe a bit more challenging
25:49
no I got that I wish I had better news
25:51
there I actually think no I think
25:53
there’s actually just not you know
25:55
that’s exactly what we want we don’t
25:57
want the the cells job and the fluff and
25:59
all that stuff we want the the real
26:01
story so that you go into it knowing
26:04
what’s going on
26:05
and then the bottom line to this is that
26:07
this really is a business it’s not
26:09
really you know there’s a lot of
26:10
conversation a lot of talk about passive
26:13
income and online has never passive it’s
26:16
is you know there’s there’s always a
26:19
task to it you might not do it eight
26:22
hours a day for 40 hours a week but some
26:24
of these are five hours a week or
26:26
accessory something that’s gonna work
26:27
there’s some work and there’s a skill
26:30
set I don’t around that is if you’re
26:32
part of a group like there is what we
26:34
see you’re like funds kind of popping up
26:37
where it’s like real estate investment
26:39
trust almost right reads you see people
26:42
buying like larger portfolios to say
26:44
five or 10 million our portfolio and a
26:47
bunch of learned three or five or seven
26:49
thousand dollars each and there’s a
26:51
management structure in place to run
26:52
those businesses with the team and
26:54
everything so that’s one way around and
26:56
let people another one I mentioned are
26:57
like one or two or three investors with
27:00
one or two kind of managing partners
27:02
that actually run the websites and have
27:04
the skillsets and you can you know to
27:06
split up the equity and split up the
27:09
returns are you know based on whatever
27:12
you agree to that
27:13
so there are ways to do it with with
27:15
zero skills but you know you’re gonna
27:17
have to set up partnerships in agreement
27:18
you’re gonna have to make a deal
27:20
there’s a lot of deal-making by the way
27:21
down a lot and one of these I mentioned
27:23
to you you know I know that you’re busy
27:25
doing your thing but like I think
27:27
there’s a huge opportunity for someone
27:29
to teach those skill sets in years and
27:33
to baby boomers and explain to them
27:36
here’s how you run an online business
27:37
like here’s how you get there was one of
27:40
the reasons i love your niche and I
27:41
Beyonce i normally I don’t do like a lot
27:43
of interview across from people like I
27:45
don’t know terribly well but I saw your
27:48
niche and i was like i love what you’re
27:49
doing like this is like you’re you’re
27:52
doing the Lord’s work outside like
27:53
you’re you’re showing people what the
27:56
you know how to run these businesses
27:57
don’t you and that said no but i love it
28:02
i think it’s amazing and there’s just
28:04
such an opportunity you know there’s
28:06
already a ton of people teaching the
28:07
Millennials I didn’t really be taught
28:09
anyways they grew up on the start
28:10
hey so it’sit’s baby boomers that if
28:13
they learn i think they could really
28:14
benefit the retiring like they’re like
28:17
look I want I want something to do
28:19
I want some casual i’m retired but I i
28:21
still want to keep my mind active i want
28:23
to have fun and I want to count the
28:24
business I want the online income
28:26
exactly that and that’s exactly right
28:28
and that’s exactly why why you know
28:31
we’re doing this then I think that
28:33
there’s a huge potential out there for
28:35
what i call moving into the third
28:38
chapter of your life you still want to
28:40
do something you want to stay active and
28:41
you want to make some income but you
28:43
don’t want to do what you’ve been doing
28:45
for the last 40 years which was to go to
28:47
office every day for eight hours a day
28:48
so I agree with you won one last
28:53
question and i really liked your your
28:57
podcast number 158 where you talked
29:01
about the downturns and you talked about
29:04
your own personal downturns one in
29:07
particular was really caught my
29:09
attention because i remember that period
29:12
of time was in 2011 when a lot of people
29:14
have these micro sites or niche sites up
29:17
and everybody was making a lot of money
29:20
and then google or that stands for God
29:24
made one change and white most of those
29:28
sites out nobody had to start all over
29:30
again
29:31
yeah what do you see as the risk going
29:34
forward and let me let me preface that a
29:37
little bit
29:38
in addition to what i just said about
29:39
your site i know you know for years I’ve
29:43
been in the lead generation business and
29:45
we used to do a lot of business with
29:48
google and we would do a lead generation
29:51
page for sold the solar industry for
29:54
instance and i was spending a hundred
29:55
thousand dollars a month with google to
29:58
be one of the top three right a hundred
30:01
thousand dollars a month and I was a
30:02
small guy their fourth one below you
30:05
know the fourth one down was the first
30:07
organic listing he didn’t spend anything
30:10
yeah you know so you have this this
30:13
diversity between people who are
30:15
spending a ton of money just about the
30:17
guy that’s not spending anything and i’m
30:20
curious whether you think that Google is
30:21
going to keep that up for very long
30:23
where they’re allowing all these people
30:25
to make money without paying for any of
30:28
it through google or that they’re going
30:30
to start monetizing the
30:32
organic traffic as well so there’s risks
30:35
and dangers going forward does that make
30:37
sense
30:37
I it does so I don’t think that Google
30:40
is going to start monetizing the organic
30:42
spot I mean that it’s a big deal like
30:45
they even with their ads they they’re
30:47
generally colored boxes that they try to
30:49
make it very clear which not super clear
30:52
to me somewhat clear the which ones are
30:54
ads which ones aren’t they start
30:56
charging for organic positioning i think
30:59
a lot of credibility will be lost and
31:01
they lose market share and more
31:03
important than anything else is to keep
31:05
market share right so they can find ways
31:07
to make our money on the customers did
31:09
like a drug dealer they’re gonna keep
31:10
coming back
31:11
hey so that’s a sprite more importantly
31:13
they lose a lot if they did anything
31:15
other than that but you’re kind of
31:17
maiden main point is like what are the
31:20
risks kind of like going for long term
31:23
in our industry and you nailed it on the
31:26
head using Google’s God if your site or
31:28
your business is based mostly on organic
31:30
traffic and you know in the course of
31:33
their free organic position as you
31:35
mentioned and you lose that positioning
31:37
do a Google tweaker change that can hurt
31:39
you dramatically lose 20 40 eighty
31:42
percent of your income right from that
31:44
change and there are ways around that to
31:47
diversify your traffic streams let’s say
31:49
that you know forty percent of your
31:51
traffic is coming from paid facebook and
31:54
forty percent from google organic and
31:56
twenty percent from social right you
31:58
don’t take as big of a hit if you take a
32:00
google organic it or you can think of it
32:02
even besides like just that particular
32:04
site think about your portfolio right so
32:07
what if your portfolio of sites 10 sites
32:10
right three of them and say they’re all
32:11
equal size three of them or based on
32:14
organic traffic three of them are based
32:16
on page Facebook two of them are based
32:17
on paid google and three of them are
32:19
based on something else you’ve got like
32:21
a diversified traffic portfolio you have
32:24
other issues to where let’s say that all
32:26
of my earnings are coming from amazon
32:28
affiliates or adsense or something and
32:31
they shut me down because of lots of
32:33
reasons why did they shut it down
32:35
I would lose a ton of money so basically
32:38
you want to look out for single points
32:40
of failure like it is the same thing
32:42
with them with an offline business you
32:43
want to avoid single points of failure
32:45
building your business on the back of
32:47
another business that can you know shut
32:50
you down at the flick of a switch
32:52
well that might be a great way to get
32:54
started because you’re piggybacking on
32:56
their success you quickly want to find
32:58
ways to diversify away against and hedge
33:02
against that happening right you don’t
33:05
want to be able to flip that switch at
33:06
some point and cause you your business
33:08
go away and in my mind that’s not a real
33:10
business might be an interesting little
33:12
cash flow you got going but business has
33:14
to be able to survive another company
33:15
just turning you off right
33:17
yeah I get that well just I think this
33:19
is been a great conversation I think
33:22
we’ve got a lot of information and we’re
33:24
going to be putting links to your site
33:26
and what I’d like to do if possible they
33:28
basically just gonna stay in touch maybe
33:31
invite you back every once in awhile
33:32
kind of give us an update on what you’re
33:35
doing and what you see as far as going
33:37
forward and more importantly for me you
33:40
know how many of our how many of our
33:42
viewers are coming over and
33:43
investigating and saying hey this is
33:45
really something that I need to look
33:46
into that sound fair
33:48
yeah man that sounds great and the other
33:50
thing I mentioned us obviously in
33:52
partners com my twitter account at
33:54
Empire covers but if you’re considering
33:56
buying we put out a piece of content on
33:59
that I think that’s really helpful your
34:01
other guests chapman and I we have a
34:03
podcast together my web equity show and
34:06
we made season to all about you know
34:08
from knowing nothing all the way through
34:11
negotiating the deal and what to do this
34:13
the strategies for building out after
34:15
the fact so it’s like a 10-episode
34:16
season season to web equity show is from
34:20
knowing nothing walking you through
34:22
step-by-step the requirements and kind
34:25
of the steps for purchasing on all my
34:26
business so if you’re curious about that
34:28
i really recommend season 2 of web
34:31
equity show obviously we have our show
34:33
Empire flippers it’s about buying and
34:35
selling but also kind of our
34:36
entrepreneurial journey traveling and
34:38
living in Southeast Asia it’s about kind
34:40
of like our business overall Delta
34:42
sounds great
34:43
Justin thanks again thanks Dan had fun
34:45
man
34:46
alright bye bye and thanks for joining
34:48
us on this episode i hope that you found
34:50
it informative please check out the
34:53
notes section for more links and
34:54
relevant information and if you like
34:57
what you see
34:58
just make sure that you like us on
35:00
Facebook and also subscribe so that
35:02
you’re up-to-date on a weekly basis of
35:04
what we’re doing
35:05
thanks again hope to see you next week

Leave a Reply

Your email address will not be published. Required fields are marked *

Top