💸 Could you make $11,835 a month with an Education Website?

Nano Thought

Earlier this week, I wrote a thread about how I started an ad network at 19 that was making up to $20k a week by the time I was 21. We then sold the business as my first exit.

James Camp 🛠,🛠 @JamesonCamp When I was 19 I started an ad network By 21 It was hitting $20k+ weeks Here’s how I used authority to grow (and sell) a business... July 14th 2022 25 Retweets 206 Likes

If you're interested, you can read the entire story here. But the tl:dr is this:

Arbitrage.

Most marketing opportunities are about arbitrage. Paying $28 for a lead and selling it for $48, for example. Those were the basic economics of the ad network I started and scaled.

If you're looking to build an online business, think in terms of arbitrage: What can you buy for $X and resell for a higher amount?

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This Week’s Nano Flip Opportunity

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This week's flip is EarlyImpactLearning.com, a website listed for $201,700.

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​Link to Listing​

This website makes a bit more money than the ones I usually cover in this newsletter. It's currently profiting $6,135 per month, which means it's selling for 32.8x monthly profit. Typically, I'd expect to see a 40x multiple, so in the regard you could say the site is "cheap".

Another note: This is a Dutch Auction, so the price will continue to drop until someone purchases the website.

With a site of this size and revenue, It's more interesting as part of a larger portfolio than just a flip.

The site is already being monetized in several ways, from Ezoic display ads to courses and books sold via WooCommerce. So unlike many other flips I cover, there's no easy "add ons" you can quickly use to boost revenue.

The site already has some strong SEO, including 173 articles and a 25 Domain Authority. And check out the traffic:

From the listing, here are some other assets the site comes with:

"Site comes with an email list of around 12,000 subscribers. Comes with a Youtube channel with 2,500 subscribers. Comes with a Facebook page with 6,500 likes. Comes with an Instagram account with 2,300 followers"

In many ways, this website is already an established brand with several marketing channels, unlike most of the websites I usually cover.

But, there are definitely areas that can be improved.

From the listing, here are three ideas the seller identifies for growth:

1) Affiliate – the site currently has zero affiliate marketing on it, and so this is very much an untapped area. Affiliate offers could be placed on high trafficked blogs, you could write reviews of relevant gear, or affiliate offers sent out to the email list (or all three)
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2) Growing traffic through writing more content based on what has worked so far. I have one writer currently, but I believe many more could be found through recruiting from my email list.
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3) Creating funnels that link the blog to the info products. Most info product sales currently come very simply through a weekly email. Some come from a few simple links in the blogs. But more active linking of the blog to info products or funnels to sell relevant info products has always been high on my to-do list but not happened yet.

I think the email list of 12,000 can be monetized much better. From the listing, they don't break out revenue from the email list.

In this niche, I think the email list should be monetized at a rate of $0.25 per email per month. My first goal after buying this website would be to make that happen. If you could get the email list to that level of revenue, it would be worth $3,000 per month.

I'd implement this by sending offers monthly to the email list and increasing the emails to 2x a week instead of 1. This could mean running a sale on one of the website's most popular books for email subscribers only - or even just selling sponsorship space to advertisers.

Let's also not forget that we should expect to keep adding subscribers! I'd add in a pop-up lead magnet offering a free resource for users that input their email, as well as implement some lead forms through the right articles.

If done well you could hope to convert traffic at 2%. At 50,000 unique users per month, we should expect about 1,000 new email subscribers per month. Let's assume some will unsubscribe, so we'll call it a net of 900 new subscribers per month.

Let's say you bought this website and held it for one year. Here's what you the financials would look like if all you did was focus on the email newsletter:

• $6,135 in monthly revenue from the website, unchanged from Month 1 to Month 12
• 22,800 email subscribers by Month 12 = $5,700 in monthly revenue
• New Total = $11,835 in monthly revenue

Using a 40x multiple, the website would be worth about $473,300 - more than double what you paid for it. In fact, that would be a 135% return, not even factoring in the revenue you would have pocketed throughout the year.

This just goes to show how powerful email lists can be. Having an email list means you own the customer relationship. You can reach out at anytime instead of waiting for them to remember you and visit your website again.

There are also some really really interesting opportunities to build a community here around the website.

As always this is just one hypothetical scenario of what could happen. Make sure to do your own due diligence and only buy something you know works for you with your skillset!

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Builders Build

This week on Builders Build, we talked with Nicholas Brown, Head of North American Acquisitions at Dragonflip. Nicholas is a Sweden-based business broker who’s been working on complex mergers and acquisitions worldwide at multiple companies.

On this episode we talk about:

– Best and worst spaces to build for acquisition

– How to prepare to sell your business

– Tips for evaluating your business

– How to calculate a ballpark figure for your business

– What information you should have on hand before starting the selling process

– What categories are hot right now and where ecommerce is headed

– And so much more.

​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/​

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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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