💸 Who Wants to Make $44k from buying a Tech Blog?

Nano Thought

There are so many great great stories of people leaving their uninspiring 9-5 to build an exciting online business.

One of my favorites, is of Brian Kelly, and him building The Points Guy.

Check it out below:

James Camp 🛠,🛠 @JamesonCamp In 2010, Brian Kelly was a recruiter with no passion for his job. In 2019, his travel blog made about $20,000,000 in revenue. Here’s how he turned his hobby into an 8-figure business: Let's start with a summary of the story, and then we'll get into some actionable lessons.… twitter.com/i/web/status/1… pic.twitter.com/1KFp0eUus8 March 30th 2023 4 Retweets 40 Likes

This is a reminder to all - that its more about the drive and the willingness to figure things out, than it is about the experience on has. Most of the experience that entrepreneurs have...often comes from well...figuring it out as they go!

Maybe you want to build something from scratch, or maybe you have no idea what you would build, so you find it easier to buy something. Either way, the internet is vast and the opportunities are endless.

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This Week’s Opportunities

Content Sites

Here is a breakdown of a site from Empire Flippers. The listing can be seen here​

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Site Summary:

The site is a content site that makes most of its money from Display Ads and Amazon Associates that was created in November 2017 in the technology niche. More specifically, this site is focused on creating informational & affiliate content about Home Audio & Video, TV & Streaming, Gaming, and miscellaneous Tech topics. Let’s dive into the details of this deal!

First here is a look at what seems like a nice history of growth on ahrefs a clear drop thats not great, but def a recovery in traffic.

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​Things we don't like:

• The site was massively impacted by May 2022 core update. It has recovered tremendously but only reached about 70% of 2022 traffic highs.
• Products in this niche are constantly changing. Technology products are constantly changing and require website owners to frequently update their content to keep up.
• Lack of internal linking & unique imagery on the website.
• Lack of basic E-A-T signals. (authority in googles eyes)
• Minimal social media presence & currently not collecting any emails.

Ok Y'all! things we do like:

• Lots of well written & informative content creating solid topical authority in the technology niche
• Traffic from Tier 1 countries & is diversified across many different pages. Top page only gets ~8% of the website's traffic. This mitigates the risk of one page losing its ranking & losing a significant portion of overall traffic.
• Current team of writers willing to stay onboard - Makes ownership transition much smoother.
• Some high-quality backlinks including Kodak, GadgetReview, and more.

A new owner could:

• Re-design the homepage to feel more like a real brand/business. The current homepage is simply a reel of the latest blog posts. Adding content to the homepage helps Google understand what your site is about. It also increases the chances that people will view your business as legitimate and link to your site.
• Implement basic CRO (conversion rate optimization)techniques to boost affiliate revenue. Adding product comparison tables and large buy buttons should increase clicks and revenue.
• Optimize top pages with unique images and internal linking to pass link equity. There are many pages on this site that attract backlinks and a ton of traffic. Adding internal links from these pages to other related pages can build topical authority & boost site wide traffic.
• Create a YouTube channel reviewing products. A new owner could create a YouTube channel and perform in-depth reviews of their top-earning products. YouTube reviews can produce a significant amount of affiliate commissions.
• A new owner could also invest in creating more affiliate content - Best of X, product comparison, product reviews, etc. Utilizing a more uniform template for your best-of lists can make it much easier to scale your content production without sacrificing quality.
• Collect emails to create a technology-based newsletter & promote affiliate products. This allows you to continuously retarget your audience!

Final Thoughts:

Overall, the site is a high-traffic content site in the Technology niche. In the last year, they have been hit significantly by Google updates that heavily impacted traffic. As a buyer, this introduces major risk.

The current site is making 94% of all income from AdThrive. This means that the biggest growth lever is to improve the amount & quality of affiliate content to boost earnings.

The owner is selling this site for ~$126k (34x multiple of trailing 12 months average profit). This is a fair offer that leaves room for a new owner to make improvements and see a large return. However, due to risks from Google updates, we would think making an offer in the range of ~$111K (30x-32x monthly multiple).

By adding new affiliate content and implementing the CRO techniques we just discussed, a new owner could conservatively boost the earnings 15%. This would bring in an extra ~$555/mo or ~$20k in value!

Assuming the site owner reinvested all revenue in growth for the first 4 months & half of their revenue for the trailing 8 months, they could potentially earn ~$17k in revenue! The site would then be valued at ~$153k.

**Potential return = Revenue + sale profit = $17k + ($153k - $126k) = $44k*

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As always...do your own due diligence, the above is based off of what we see as an opportunity from the info provided in the listing and some light due diligence, not a deep dive. 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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​Podcast Corner

A while back I was on my friend Michael Girdley's podcast! You can watch it below or check it out here​

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Whats on the Pod

"Michael Girdley is joined by James Camp , who grew up in New York City and is a Jack of All Trades, especially on marketing strategy, monetization, and website flipping.

We talk about how he lost $100,000 trying to acquire a firm, the downside of financial touts, and stock buying schemes he's encountered."

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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.

Check out 2 newsletters from my best friends you will love

Colin Landforce's personal newsletter for all things business building: builders.build/colin​​

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.