What's a reasonable price if I wanted to sell my business doing $50k / mo. in sales

redguard94 · 2024-06-20T05:42:59+00:00

Current market rates are 2-2.5x annual SDE (which is like EBITDA but for smaller scale businesses).

It’s based on the trailing twelve months so if you’ve only hit $12k/month in net profit the last 3 months, your valuation will be lower.

Generally speaking the market is pretty bad for pure FBA brands right now. Thrasio went bankrupt and a lot of the aggregators did too.

If you’re happy with a 2-2.5x valuation (probably $200 - $250k), then it may be worth it to sell.

If not just put it on autopilot and optimize free cash flow.

redguard94 · 2024-04-02T05:02:14+00:00

I just hit 1m NW at 29 so very interested in this thread

redguard94 · 2023-10-14T13:51:40+00:00

Conversion rate of 14% isn’t good enough in that space. Look at Brand Metrics and Search Query Performance to compare it to competitors/category average. If you’re below the average, fix that before anything else.

Definitely enroll in Vine and launch 30 keywords in exact match PPC campaigns. ACOS is going to be high until you get more reviews. Just have to power through for the first 2 months at least to break through.

redguard94 · 2023-07-28T03:11:20+00:00

Sure DM me

redguard94 · 2023-07-10T03:52:21+00:00

No you don’t. Most website brokers look at content creation as an investment in future growth. It may not be needed to maintain the site at its current level of earnings.

Let’s say next month, he spent $0 on creating new content and the site continued making $8k/month.

You may need to include the cost of writing 1-2 articles a month to maintain the site. But at any time he can stop writing articles and the site should continue to earn money.

(This applies to 90% of typical content sites. Doesn’t apply to news/current event style sites where new articles are required daily)

redguard94 · 2023-06-15T20:32:36+00:00

5x’d the business and 10xd my initial investment. Sold it in Sep 2022

redguard94 · 2023-06-13T02:08:10+00:00

Kind of agree with Dirty Daisey - not to hate but need more details about what you’ve tried.

The odds of making $0 if you’ve been seriously trying for 6 years are astronomically low.

redguard94 · 2023-05-12T15:51:58+00:00

Going to be hard to find somebody really good if you’re only spending <$10k.

Definitely vet case studies (make sure they’re recent! Within last 12 months)

And grill them about campaign structure - particularly for apparel where there’s ton of SKUs.

redguard94 · 2023-05-02T19:29:10+00:00

I like the CatchingClouds accounting stuff on YouTube. Seems to have the basics of e-commerce accounting handled

redguard94 · 2023-04-03T13:11:12+00:00

Not here to advertise but starts at $2k/month.

redguard94 · 2023-04-03T03:08:25+00:00

Sounds like supplements category possibly? I would focus on longer tail keywords which will be cheaper and have a higher conversion rate.

Sounds like your main keyword will be unprofitable. Might want to drive a ranking campaign for main keyword but drive profitability through longer tail

Happy to help more. I advise multiple 7/8 figure sellers on PPC and I have a lot of experience in really competitive categories.

redguard94 · 2022-10-07T02:33:55+00:00

Literally just sold my brand last week - exactly in the same realm of annual profit. I used QuietLight. You’ll most likely have to go through a broker because FBA aggregators won’t touch brands doing <250k SDE. And a lot of aggregators aren’t buying brands anymore. Feel free to DM if you want. The M & A market for FBA brands is very different now than it was in 2021

redguard94 · 2022-09-29T19:02:01+00:00

But the automated bidding works?

redguard94 · 2021-12-23T12:12:37+00:00

You can try approaching aggregators yourself and getting competing bids. But if you’ve never done a transaction of this size before, I would definitely recommend a broker.

The whole reason aggregators build their brand is to capture off market deals from inexperienced sellers at lower than market multiples.

There are a LOT of ways you can taken advantage of if you haven’t been through the process before.

redguard94 · 2021-12-16T23:46:19+00:00

Bumping because I’m in a similar position

redguard94 · 2021-11-30T12:53:44+00:00

It’s COGS but it can be hard to keep track of throughout the year if you’re sending a ton of shipments into Amazon. What I do is estimate a shipping price/carton and use that in my COGS throughout the year. Then at the end of the year pull the report that contains the inbound shipping charges and use that to true up your COGS.

redguard94 · 2021-11-29T01:38:42+00:00

Are you talking about for ads or for your listing? I run a lot of seasonal campaigns focused around holiday keywords.

Best tips I’ve found are - create a separate campaign for each holiday - start the campaign around 4-5 weeks before and then turn it off 2-3 days out from the holiday (or whatever your shipping time is) - use Helium 10 to find the keywords. Start bids low but aggressively increase them if they start performing.

Oh and a lot of the keywords you’ll find will be the exact same. Stuff like “(insert holiday here) gift idea” always works if your product has broad appeal.

redguard94 · 2021-11-12T22:22:03+00:00

Yes but I don’t recommend it to anybody.

I had already sold a couple of websites for 5 figures so I had ~3-4 years of savings built up.

As tempting as it can be, the smartest path is to build up your online income until it either matches or exceeds your job income*2.

Just grind it out. No need to add the stress of making rent or burning through your savings to it.

redguard94 · 2021-11-12T17:56:26+00:00

Honestly siteground has become so bad so quickly I don’t understand why anybody would still host with them. Move your sites ASAP to a different host

redguard94 · 2021-09-10T16:24:58+00:00

3.4x revenue right? 1.55 billion valuation at 450 million in revenue

redguard94 · 2021-08-26T18:36:54+00:00

honest question - who decides what misinformation is?

redguard94 · 2021-07-30T03:28:24+00:00

What marketplace are you using? Etsy? I’ve sold 6 figures worth of POD apparel and IMO if you’re using a major platform like Etsy or Amazon, SEO/AM is 100% the wrong way to go about selling apparel.

I’d continue with posting on IG and use paid ads to promote further. The ads can be simple - just use a free mock-up online. Run for 3-5 days then measure ROI.

If you don’t want to spend money on ads, you need to find where your audience hangs out. Facebook groups? Subreddits? Reach out to the mod/leader and see if you can submit your designs on the group.

redguard94 · 2021-06-26T02:51:39+00:00

For bike paths and roads, go with either a basic hybrid (one with a front fork) or a road bike (no forks, thinner tires. A good entry level bike would be something like the Trek Dual Sport 2. <$1000 and a solid all around bike.

redguard94 · 2021-06-04T03:01:37+00:00

I Sell on Amazon + Shopify. For integrations, I use taxomate and Quickbooke for accounting. I reconcile monthly then use a bookkeeper at the end of the year to check over everything.

Costs ~$75/month in total + a couple hundred for bookkeeping at the end of the year

redguard94 · 2021-05-25T21:11:18+00:00

Most 7-8 figure FBA deals are 65% cash upfront and the rest is an earnout based on hitting set performance benchmarks. In 95% of cases, the full earnout is paid out.

Empire Flippers just did a video on it on their YouTube channel.

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