💸 218.18% ROI and $4508 a month from this Off Roading website?

Nano Thought

People often ask me how big online businesses can get, clearly if you're in the DTC ecom space, you can be Figs and be a multibillion dollar brand, or in saas you have the Salesforce's of the world.

But content sites can be massive too.

Most just don't see it. They don't see that a simple blog, if well branded and grown becomes a media outlet.

A great example is that Fandom acquired Metacritic, GameSpot, TV Guide and other entertainment brands in deal worth around $55M from Red Ventures.

You can read more about it here.​

James Camp 🛠,🛠 @JamesonCamp Nobody believes me that blogs can be worth $10s of millions... Well, Fandom just spent $55 million to buy a few blogs you may have heard of before from Red Ventures Some of the sites were GameSpot, Metacritic, and TV Guide. How big can your site become? The sky is the limit pic.twitter.com/ItgZ9UKPEp October 5th 2022 1 Retweets 8 Likes

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This Week’s Nano Flip Opportunity

We found a site over on Motion Invest to highlight this week. Its a website about Off Roading! This could be a perfect site for someone who loves off roading, and could even work if you don't. Here is the listing.

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Ok so right off the bat, the things we DONT like about this site.

• UR rating of 2 and DR rating of 1 according to Ahrefs
• Since it ranks so many keywords with no authority, it would be easy for a competitor to outrank the pages
• Traffic and top 10 keywords (according to Ahrefs) dropped in September 2022
• Site is pretty new

Ok now that we got that out of the way, let's look at some of the good things. First off traffic has been growing overall this whole year (small drop in sept to be aware of that will likely reflect in oct as well), and considering this year had some of the strongest Google algorithm updates Ive seen in a long time, that says a lot!

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The site is also in a nice broad niche, that has a passionate group of hobbyists in it.

This means there is like TONS of content to create, an opportunity to build a community or newsletter, and it shouldn't be impossible to find someone to outsource great content to in the future if you don't want to write it yourself!

Some other highlights:

➔ There are 48 pages that have Amazon products being linked to and no have the proper Amazon Affiliate Disclaimers in place.

➔ There are 159 Amazon links being used and of those 12 links are missing an affiliate tag.

➔ The site links to 139 different Amazon products and of those 13 products are out of stock, meaning people who click on those links can’t actually purchase the product. Swapping those products with different products that are in stock can help to increase income.

The traffic is also nice and spread out among the articles. No page is getting more than 5% of the total traffic to the site.

THIS MEANS THERE IS AN OPPORTUNITY TO MAKE MORE MONEY FROM THE SITE! NEW OWNER COULD FIX THOSE LINKS!

If one were to buy this site here is what they would do:

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• BUILD SOME BACKLINKS! The site is doing great, but it has no authority. I would want to do a backlink gap analysis to see where my competitors had great links from, and start building some links to protect the sites rankings.

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• Build a community or newsletter! You could do both but let's assume you build a newsletter. The site is getting 50k+ uniques a month. Lets assume we could capture 1-2% of those people into a newsletter about Off Roading. Thats 1k new subscribers a month! We can monetize this don't forget :)

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• Figure out what keywords have high traffic and are on page 2! With a few backlinks we could bring lots of those pages to page 1 and increase traffic drastically. The amount of traffic a site gets being on page 2 for a keyword is NOTHING in comparison to what it can get when it hits page one.

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• Start finding niche communities where you can share great content from the site. Just from looking at FB Groups and Reddit, Ive managed to find 100k or so new potential readers. I would also use these communities to find people that want to write for the site. Many Im sure would love to write for free!

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• Last on my list would be to get the site redesigned and pulled together to feel more like a cohesive brand. This will help in selling sponsorships and in building a newsletter/community. (last my list and BE CAREFUL NOT TO MESS WITH SEO)

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The website is making $2,004 per month and is selling for 33x its average monthly profit at $66k~

Without using leverage or making changes, if the site stays strong it will bring in roughly 30% cash on cash returns, not too bad for a business that can be a passion project.

But lets assume you make some changes! At 2% growth of the email list, thats 12k new subs a year. Let's say 10k to compensate for some churn from unsubscribes.

To be conservative, lets also assume we don't monetize the email list for 12 months AND that it doesn't grow after 12 months (obviously it would)

If each sub earns us .25 per month, that means year 2 the list makes us $30k in revenue, and on massive 95%+ margins.

Maybe we have to spend $500 a month on content and backlinks to maintain rankings and build a moat (this would also make the site grow...as well as revenue. But for the sake of being conservative we will pretend this just maintains traffic)

Year 1 the site could earn $24,048 and cost $6k to run leaving the new owner with $18K~ net profit

Year 2 the site could makes $54,048 ($2004 a month site revenue + $2500 month email list revenue) and cost $6k to run leaving the new owner with $48k~ in net profit

Its new revenue puts the sites valuation at roughly $144k~ based on 35x monthly net revenue if you sold it

Which all ads up to mean that if this worked out over the next 24 months the new owner could make $210k gross or $144k net profit for a couple hours of work a week (the biz cost $66k to buy don;t forget). OR they could of course keep it and make $4k a month semi passively.

Thats a 218.18% ROI on a $66k investment

As always...do your own due diligence, the above is based off of what I see as an opportunity from the info provided in the listing and some light due diligence. It just one of many scenarios that could play out and its up to you to do your own due diligence and see if this makes sense for you!

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​Builders Build

As always here is a little plug for my podcast.

This kind of non-compliant product is the subject of today’s pod and this post, so welcome to it.

Let’s get started…

Ad networks like Facebook and TikTok LOVE to control what kind of products you can advertise. So what do you do if your company sells something the ad networks don’t like?

You listen to this podcast; that’s what you do.

In this episode, we give you all the alpha and info on:

• How to run compliant ads for non-compliant products
• Are SMS and email really the best way to reach customers?
• How NOT to do SMS marketing
• And more

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Links to listen, watch, and read here​

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

Thanks from the Nano Flips team

(James)

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P.S.
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I highly recommend you check out my friend Sieva Kozinsky newsletter The Business Academy he always highlights a cool investment opportunity💰, or an interesting business insight 📊: https://thebusinessacademy.substack.com/​

Check out 2 newsletters from my best friends you will love

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.