💸 Cook Up Some Profits w/ a $44k Cooking Website

Nano Thought

To get started on the road to success, you need to have self belief.

Even if you have tried a couple things and they didn't work out, you need to be willing to keep trying. I don't care if it's affiliate marketing, or agency work, building and flipping websites. You just need to stick with something that works and scale it up.

Anyone can build or buy an online business, it just takes some education and practice. It's ok to build a website from scratch if you can't buy an existing one. We all have to start somewhere.

Just start!

James Camp 🛠,🛠 @JamesonCamp If you can make $100 online, then you can make $1 million. Just keep building. July 8th 2022 20 Retweets 247 Likes

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This Week’s Nano Flip Opportunity

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I found this cooking review website for sale on Flippa. It looks like a pretty good site, and has an exclusive affiliate deal with a frozen meal service. Let's dive in.​​

​Link to Listing​

The numbers on this site look pretty good. Revenue has grown pretty quickly in the 2 years since the site was created, even though the owner hasn't explored very many revenue channels. From the listing:

"Opportunity For Growth - Because the owner is focused on other businesses and only uses this website for Amazon and FreezerFit affiliate revenue, any buyer looking to partner with more affiliates, focus more on SEO, implement display ads, collect emails, create a digital product, etc has a great opportunity to increase the monthly revenue substantially. FreezerFit is also growing at a nice rate which should increase monthly Cuisinen affiliate revenue."

With that in mind, one of the first changes I'd make is adding Ezoic for display ads.

With the current level of traffic, I'd expect that adding Ezoic could increase monthly profit by $100 or more if optimized. I would be careful to just have ads in places that wouldn't pull away from your potential affiliate commissions.

This site's starting price on Flippa is $19k, but it will almost certainly sell for more than that. A good rule of thumb is 40x monthly profit, or $44,440. Let's say you buy it and plan to improve the website over 12 months, then sell it.

There are 2 changes I'd plan to institute right away:

• Add display ads from Ezoic. If done right, this would add $100 a month in monthly cash flow.
• Add a newsletter. A newsletter is a great way to "own your audience" and increase your revenue by sending offers directly to your users.

Now let's take a look at how those changes would improve our cash flow and the value of the website.

For this example, let's assume zero traffic growth. Of course, I'd want to have a strategy to increase traffic for any site I bought, but let's keep this scenario simple.

For the newsletter, I'd say a realistic target is converting 2% of traffic to the newsletter via a pop-up lead magnet on the website. The lead magnet could be an offer for a list of the best cooking books or something similar. According to the listing, the website gets about 7,000 unique visitors per month. A 2% conversion would mean 140 email sign-ups per month.

In the cooking niche, I would expect to monetize those subscribers at rate of around $0.10 per month per subscriber. So in the first month, we could expect $14 in additional revenue (140 email subscribers x $0.10).

In the second month, we could expect about $28, the third month $42, and so on.

By the 12th month, I'd expect to have about 1,680 subscribers, which would be worth $168 a month in cash flow.

With that in mind, here's what month 12 cash flow would look like:

• $1,111 existing cash flow
• $100 Ezoic display ads
• $168 newsletter revenue

New total = $1,379 monthly cash flow.

If you sold the website at the same 40x multiple, it would be worth $55,160.

That's a return of $10,720, not including the cash flow you collected.

If you count that cash flow through those first 12 months, you would have brought in $15,540.

That's a total profit of $26,620 on a $44,440 investment, or a 59% cash on cash return. Not so bad!

Even with just those two changes, this would be a great flip if you're able to execute.

But there are other changes I'd look into. The site has a very low DR and a pretty weak backlink profile, so I'd look at building way more backlinks ASAP for it.

As always, this is just hypothetical. Always do your own research!

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Builders Build

Wanted to highlight a Builders Build episode from last month about how to build a no-code business with Alex Friedman. She's built in CPG, SaaS, and with a couple projects in the works right now she's been building her TikTok presence with content focused on making tech and business easy to understand. One of Alex' most recent projects Founder Gigs was acquired in only a few months after she built it with no code over a weekend.

​Listen Here​

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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/​

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.