Niche content site sells for 3.3x ARR 🌴

August 26, 2022
​Read on web​

This story is a bit meta: a case study of a case study.

Serial entrepreneur Spencer Haws created Own The Yard, a website dedicated to backyard life, as a way to share how he builds content sites that are later sold.

He brought the followers of his other website, Niche Pursuits, along for the ride with regular updates since launching the media property in September 2018.

Haws published SEO-friendly and shareable content on the site, which helped it attract up to 200,000 website sessions each month.

Three years after launching the site, he showed just how attractive content companies can be when he sold it in a low six-figure deal.

🌴 Content site on backyard recreation sells for about 3.3x annual revenue​

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The value of community companies 🙋🏽‍♀️

Leonard Teo and Kevin Strike aimed to build not only a better portfolio site, but a true community and marketplace for digital artists.

The duo launched ArtStation in 2014 when a trove of portfolio builders like Wix, Squarespace and others already existed.
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But instead of emulating those already well-known brands, the co-founders focused on the problem many artists face: discovery. It was difficult for shoppers to find artists online, so they created a community that helped connect artists and elevate their work.
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The concept deeply resonated with creatives, and ArtStation attracted 5,000 users in its first 24 hours.
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Here's how the two built and sold their company to a gaming giant. 👇

🎨 They grew a community to millions of creatives before finding a buyer in their network​

See an earn out in your future?

I've talked with a bunch of entrepreneurs lately who are considering earn outs as part of their acquisition package.

I've also kept up two different friends going through earn outs — and neither situation has turned out how they'd hoped.

Before you say yes to an earn out, make sure you've considered all the things that might not go your way. Whenever possible, work with an advisor who can make sure you don't commit to anything that won't work out in your favor.

A few tips for structuring earn outs:

👉 Don’t tie earn out payments to net income

Remember, after you sell, you might not have control over how the business operates. You likely won't be able to influence net income like you could when you owned the business.

👉 Don’t mistake an earn out for a service contract

If you’re planning to do any work for the buyer post-sale — you’ve agreed to train their new team, consult on strategy, or create marketing campaigns — that work shouldn't be part of the earn out.

Remember, the earn out is about receiving fair compensation for the value of your business. Negotiate separately for additional work.

👉 List your requirements

The earn out doesn’t just describe targets your former business must achieve. It can also define actions the buyer must take to help you get there. Think carefully about this piece to set yourself up for a favorable deal.

Want more tips?

Check out: How to negotiate a favorable earn out.

See you next time,

Lexi Grant
Founder & CEO
​They Got Acquired​
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About us 👋

Our mission is to redefine startup success by showcasing companies that sell for $100K-$50M. Learn more about us or follow us on Twitter.

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