💸 Another Dog Website (And how to make $30,057 on it)
Nano Thought It's no secret that our lives are increasingly being lived online. If you're looking for business opportunities, I'd encourage you to look at business models that work well in the physical world that haven't yet fully transitioned online. For example: Does your local cleaning service allow customers to book and pay for a cleaning online? If not, there's an opportunity there. Does your local junk removal company offer online booking, or do they make customers call for a quote?
This tweet explains just one of the possible business models, but there are several options: Generate leads and send them to an existing business for a fee, start your own business using tech as your competitive advantage, or buy an existing business that isn't using technology like they should. Or even start a consulting business and help those companies take orders and payment online. There are infinite possibilities. This Week’s Nano Flip Opportunity I'm back with another dog website, but this one's a bigger flip than the dog frisbee site I wrote about a while ago. It's an affiliate site about dog products that does $477 a month in profit. Here are a few things that stick out in the listing:
And some opportunities the current owner has outlined for this site:
Let's break down the math of flipping this site. The current price is $13,000, but I expect that it will sell for higher. 40x monthly earnings is pretty typical for a content site these days, so let's say the final price is $19,000. For $19k, you're buying a site that produces $477 a month, or $5,724 per year. As I've said before, you can make okay money just buying and holding website, but the real profits come from improving the websites so that you can increase cash flow and the final value of the site. So how do you increase cash flow? There's a couple primary options: Increase traffic, or increase revenue per user by adding better affiliate programs or new revenue sources. Basically, you can either bring more users to the site, or you can increase the average revenue per existing user. This is true for all websites. Of course, it's best to do both. So first, I'd make a plan to increase the amount of content being produced for the site. I'd also audit past content and make sure it's optimized for the products we're offering on the site. Let's do some math on how we could improve the site:
If we can implement these changes correctly, that gives us a new profit of $977/month, or $11,724 per year. To be safe? Let's say we have some churn of the list and costs to manage the site. So? $10k a year in net profit. On a $19k initial investment, those numbers are pretty good. As you ramped up to $977/month in revenue over the course of that first year, you would have made $5,724 during year 1. Year 2? We made $11,724 ($10K). And now, your site is worth $33,333 using the same multiple you bought the site for (40x the monthly net income average of $10k a year) So after year 2:
So let's say we sell this site! ($33,333 + $15,724) - $19,000 = Total profit of $30,057 As always, this is just a hypothetical example. Always do your own research and evaluate opportunities based on your own skills. Site looks decent in Ahrefs but its traffic decline that we can see in the listing recently is something to really look out for! Builders Build This week, the Builders Build team are joined by a young man from Pennsylvania with a dark secret… Meet Miles Longstreth, Amazon FBA specialist. The most fundamental business of them all is about buying a product and selling it for more than you paid for it. We’re builders and merchants, and we love this niche! In this episode, Miles talks about:
Thanks for reading! I'll hit your inbox next week with another breakdown of a website flip. Thanks from the Nano Flips team (James) 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/ 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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