💸 Turning a $21k site into a $43k site

Nano Thought

Remember your first dollar made online?

It changes everything.

I've heard a few people say something like "$1 made from your own business feels like $1,000 made from a paycheck." Once you get that first taste of making money online and working for yourself, you're hooked.

James Camp 🛠,🛠 @JamesonCamp Making my first $30 on Adsense from a viral blog post when I was 16 completely changed my life It’s amazing the be able to pin point a moment that effected the rest of my life in such a positive way May 23rd 2022 4 Retweets 127 Likes

If you haven't made your first dollar online yet, I encourage you to do whatever you can to get started. Nothing is too small to start with. Some of the most successful entrepreneurs I know only made a few hundred bucks online in their first year as entrepreneurs. But they learned and kept building.

This Week’s Nano Flip Opportunity

This week's Nano Flip Opportunity is an affiliate site in the cycling and fitness niche.

​Link to Listing​

The site made $527 last month, which gives it a run rate of $6,324 per year. Like I've said with every other flip, it's only worth doing one of these deals if you can substantially increase the income of the site. You'll make a bit of money if you buy the site and do nothing, but the real opportunity is improving the cash flow and the overall value of the asset.

I see a lot of opportunity with this site. One thing I don't like is that the word "Peloton" is in the domain name, which could possibly get the owner into some legal trouble with the Peloton brand.

But let's start with the improvements. Here's what the listing for the site says:

"Buyers can quickly scale up the site simply by following an aggressive content creation strategy to increase traffic and income in a short span of time. There is also an opportunity to host guest posts and sign up for different display ad and affiliate platforms to multiply sources of income."

Speaking of affiliate platforms and ad networks, I'd immediately switch the site to Ezoic, which typically helps to improve the revenue of content sites that I own.

Here's how the numbers might work out for this deal:

• $21,080 purchase price (assuming a 40x multiple of monthly profit)
• $527 in monthly profit/$6,324 per year before any changes

and here are some changes you could make:

• +25% revenue growth by updating content & switching to Ezoic
• +$200 per month for hosting guests posts
• +$231 per month by adding a newsletter with a 2% sign up rate

New cash flow = $1,090/month

With just those 2 changes, its possible you could cash flow around $13,080 in the first year. If you wanted to sell the site, it would be worth about $43,600 using the same 40x multiple from earlier.

Let's say you sell it after 1 year for $43,600. You'd bring in $56,680 (the sale price + the cash flow from the previous 12 months) on an investment of $21,080 (original purchase price of the website).

That would be a return of $35,600, or 168% on your original investment!

Now you see how lucrative website flipping can be. You get paid twice: Once on the monthly cash flow, and then again when you re-sell the improved website for more than you paid.

If you didn't make any of those changes and just kept cash flow at $527 a month, you'd break-even after about 3 years. That's still decent when compared to other investments.

Remember, this is a hypothetical example, with just some guesses about numbers! Always do your own research and formulate your own projections based off your skills.

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Nano Tips

If you're looking at improving your site's SEO, you need to know keyword research. My buddy Mike does a great job breaking down keyword research in this thread.

Mike Donovan | Niche Down👇🏼 @NicheDown How I do KEYWORD RESEARCH 🧵👇🏼 April 8th 2022 132 Retweets 596 Likes

The first step he recommends is building a list of competitors with relatively low DA (domain authority), specifically less than 30.

The goal of making this list is to identify what's already working in your niche so that you can emulate it. From there, you can use various SEO software tools to identify the keywords that those sites are ranking for.

This will help you identify keywords that you should be targeting with content.

While Mike's outlined a pretty repeatable process, he also notes that there are always manual aspects of it. Every niche is different, so you need to understand the ins-and-outs of the niche to create a good SEO strategy. You can't just blindly follow every single keyword competitors.

Builders Build

This week on the podcast, we talked with Dickie Bush about writing online.

Every online business is basically just writing to a specific audience, and Dickie is the king of online writing. Give the episode a listen here. He covers how to get started writing online, finding your ideal audience, and how to stay the course.

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Thanks for reading! I'll hit your inbox next week with another breakdown of a website flip.

Thanks from the Nano Flips team

(James)

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P.S.

Check out 2 newsletters from my best friends Oren and Colin

Free Smoke - A Cannabis Business newsletter by Colin Landforce: https://freesmoke.xyz/​

Product People - Learn the art of building CPG brands with Oren Schauble: https://go.orenjohn.com/cpg/​

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All investment strategies and investments involve risk of loss. Nothing contained in this newsletter should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.

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