MBA1328 Guest Teacher: Jaryd Krause-How To Buy Website Businesses Instead Of Building Them
<music> welcome to the show business nourishment every day with her daily. Ten minute is this lesson swore the real world. I'm your host or coach or teacher omar's home. I'm also the co founder of the hundred dollar n._b._a. A company business training and community online and today's episode is a guest teacher episode teacher episodes. We bring on an an expert teach their area of expertise. Today we have a very special guest teacher jared krause in today's going to be teaching you how to buy website businesses instead of building holding them. What are the statistics that jarrell be sharing with us at ninety percent of all startups fail. How can you avoid that hope by a business that has already gone through that that has proven success and is earning money. This is a very special lessened because many people when they think about starting in entrepreneurship or being a business owner you think about starting from scratch or something of their own building a new app or new service when a really good idea instead of investing a whole ton of money starting something new is buying an existing business. Something has proven success something. That's bringing in money month over month. Jeers gonna i share with you what to look for in buying a new website business how to do right due diligence and make sure you get the right numbers where to find businesses will brokers he recommends and what questions to ask when you're talking to the seller love. This episode can't wait for us to jump right into. Let's get into it. Let's get down to business the feeling stuck in your job bank of america the academy of consumer and small business helps helps you develop a long term career path to peer mentorship immersive programs in a variety of clear and distinct paths. You can reach the next level in your career. Take your first first step towards a long term career. Path at career step bank of america dot com today's teacher jerry krause used to be a plumber and he used to works sixty plus hours a week hard labor but more importantly he hated it fast forward to today. He has bought an owns a multiple website businesses any any helps clients earn tens of thousands of dollars every month from the businesses that they bought really checkout jarrett's podcast buying online businesses. You can check it out go o._w._i. Online businesses dot com slash podcast today. He's going to give you everything. You need to know to shop around for a business to buy what numbers to look forward questions to ask where to buy them. What's the price point of a good business. You should start with how much spend in just generally had a shop for a business. This is a great episode kate with you. Jump into someone a pass it on to jared now but i'll be back for the takeaways and to wrap up today's lesson taken away jared hi everyone on jerry krause and thanks for joining me today today o._b. Teaching how to buy website businesses instead of building them so so let's get down to business first and foremost why would you buy website well. What most people don't actually realize is the stats that a ninety percent of all stops fouled and always one of those people who bought into the whole hot being super simple to go and start your website business and might money when they realities is actually not so at assaulted by websites. It'd already passed that ninety cent value. <unk> inertly had a proven track record. They're making money month of a month now. What a common question that i always get his jarred. How much to websites cost more importantly. How much money do they even make well. You can go and buy websites anywhere from the five thousand dollar range all the way up to five million dollars or more but first let me answer what is a good process dot asp that as a beginner and whilst out bras and then it will cover for you how much websites actually might now suggests to spend more or less than the ten thousand dollar price loss ryan chin upwards to one hundred thousand dollars which is a good hundred thousand dollars. Sorry which is a good place to stop and now i have multiple website these myself and i've learned that if you spend anything under the ten thousand dollars cross range you just blind you start up where you need to spend a lot more time money ethin- energy <music> to build this thing up to hopefully pasta <unk> and hopefully give you return on investment so i suggest and this is justice suggestion because smock loans at buying thoughts for a loft saul to work the bomb off in a startup must suggestion suspended no less than ten thousand dollars cross ranch. I sort of businesses you buy in anything above that means less risk more money and more time which is what we all want rhyme as much these actually websites mike per year you can run mike roughly on average thirty percent return on your investment per year now. Sometimes these can be a little bit less. Sometimes it can be a little bit more aw and other chiefs of fob bit of result and so my clients but this is just because we know what we're doing. It'll be studies. We've gotten really good at it. Although even even if you were to just go and buy website making twenty to thirty percent return on investment is far better than the traditional forms of investing and this is why so many people are wanting to learn how to buy website businesses now. Where do you go. I am by these websites from that has a couple of marketplaces. Who's the first one is flip up f. l. i. double pay dot com and the second one is exchange marketplace dot com now. This is a cool place to go. I see see the returns that are being made and see you know what topic website business are actually out there however on these marketplaces so many websites asylum that lemons lemons meaning you need to sift through a whole lot of these different types of website listings to ensure you get actually <unk> at one and if you don't know how to do your research in due diligence dilligence you really can get taken advantage of which is why suggest people to go to website brokers instead now. There's a few different website brokers. The first one i would suggest is empire flippers if the international quite lie brokerage latinas however if you go on the google search website brokers that's gonna be a lodge range of website brokers the pop up and you can go and look at those website brokers define these website businesses the style and what you're gonna learn is. You're going to see how much these websites cost how much they making per month. Most of the work is required to run that business and how many hours we need to spend to run that business waco per month now i suggest blind for website broke is because they have a reputation at st meaning i don't on a cell dodd listings and often what they do is they prequalify these business and do some preview diligence before they put them on the market and list them for other buys the by because they don't want to ruin their reputation and want to get hiking business because they are selling lemon websites. What's so that's why i suggest buying ernie from website brokers especially when you're starting out now i covered a little bit about due diligence in how important was but how do you do diligence to ensure that. You're buying a good website and this a few different things you need to do. Due diligence on you got traffic s._c._r. Cr marketing financials a little bit about the competition and speaking to the cell up the i wanna talk about his traffic. Now traffic is how many eight people coming to the website and how they interact with the website now you want to check. The shots were trapping save. It's turning up turning down sideways and most importantly why these questions will pop up a lot during your diligence and you want to understand why the tropics turning down most people don't realize that sometimes traffic turning down however however that could be a seasonal business where they're selling summit you or wind aghia and they may have missed out on being a really good business and walked from because because they didn't understand that the traffic is turning down only because it's a seasonal business and they could aboard a business that took them a couple of months a year to run so that's really important to check the traffic. The next thing is s._e._o. Which is search engine optimization and you want to ensure the website has good s._e._o. Because it helps the website <unk> get ranked higher in the search engines like google yahoo and being which also helps them get more traffic to the site and the more traffic you have coming to your website the more money you can mike so you want to see if they've done some sort of issue the website and what that is and how effective that is and you wanna save i haven't done any and why have they not focused on m._t._r. Rather maybe nypd. I focus on doing some other top of mocking now. That's the next form of judo gene do which is marketing when it comes to marketing you wanna say what marketing they're doing what marketing they're not doing what marketings working what marketing is not working in what if the market is not working you won't understand watch is not working so you can solve as a potential new owner to this business and if he's working you wanna ask why the marketings working she can show to double down and what is working and grow the business at a much more rapid pace so awesome. These questions route you. Diligence is really important financials. Dom gonna say hey. This is probably the most important step you need to do doing due diligence now. When you come to look at the financials you're gonna get a screen shot from the cela or the burqa broke and they also get a normally give you an ex- oh sheet with the profit and loss which is like their profit and loss statement what most been realizes that excel she can just be filled up with any old number and the screen shots could just be bushido editor to reveal that. It's making really good money so what i suggest people do is do a screen share with with the sell off of them. Sharing your screen sharing the screen with you when that logged into the business's bank account in that businesses merchant account in cross else reference everything from that screen share over to the financials profit and loss statement the guilt which excel sheet to make sure everything adds. That's op once you've done that. Then you wanna move onto looking at the competition anyone say what is the competition doing that this website isn't at how can you <unk> copy a little bit of what that actual competition is doing to grow the website to admiral value to your uses well and build this website business that you wanna bought last but not least you need to speak to the selam now. This is probably the best tool for judea because you learn so much from the business when you just speaking into the cellar about the business and my favorite thing is that when you go and buy website you not looking at just one business step by looking at many website businesses lock when you're buying a property or an investment property you don't just look at one and walking. I this is the best investment bought you look at many and when you do this you learn so much about different differ website businesses and how they growing webs businesses things that you can take note off and implement those things that you did learn into the business you end up buying lying to grow even more and get a hard return on investment than you might expect. It says my favorite thing about by websites. Is you look at so many of them so let's recap this one ninety percent of oil startups file. Why build one when you buy one number two. I recommend spending no less than ten thousand dollars. Price range because anything under that is you're buying is over startup number. Three average return on investment is thirty percent return investment per year which which is more than traditional forms investing number four by from website brokers until you get really really good. It's very important often brokers because normally family have bit a listings for sale number five. Do your due diligence in the traffic s._e._o. Mocking financials competition and the silicone is is absolutely kate or god is this was absolutely awesome hired really good song if you want to continue learning more about how to buy websites that are already successful who and mike money check out my podcast buying online businesses where ranked in the top five best passive income podcasts online by facebook and if you want some free tools go and check out my jew diligence framework at which takes the guesswork out of due diligence and my website evaluates which helps you devalue a website sight to see whether it's good or not head to buying online businesses dot com slash free resources and you can get them that thanks guys support for today showed comes from mail chimp so you wanna grow your business nella milk gyms all in one marking platform is the solution i love of milk is that it's all in one. We've been using milton for over five years. It gives us everything we need to market to our clients but more importantly allows you to manage more marketing activities from one place so you we can work smarter and grow faster. Milton eliminates the need for multiple tools by giving you everything you need to create publish manage and measure multichannel campaigns. It's powered hard by a marketing serum so you can collect organize understand and act on all your audience data. Now you know who to talk to what to say when to say it and the best channel to deliver the message rush to complete marketing platform has everything you need to start marketing your business today and will be there to help you as your business grows in these new capabilities let milch him help. You market smarter order. Learn more at mail chimp dot com again. That's the mail chimp dot com. I absolutely love today's lesson by jared because he's opening up a new world for entrepreneurs. Hey this is a viable option for you to make passive income to make money and to be an entrepreneur that successful that has has gone over that threshold of does business make money yes it does i bought it that way and if you go to any of these brokers like empire flippers you can flip through and see all the different business types hypes that are on offer. There's business at sell for twenty seven million dollars and there's businesses that self on the ten thousand mark that he mentioned you should sort it. We're talking about sas businesses. We're talking about apps. We're talking about e commerce businesses. We're talking about amazon drop shipping or f._d._a. There's there's affiliate sites aside. Just make money on affiliate commission so depending on how much management you are how much of a team you wanna build. You can choose the right business model for you so it's like the empire i also mentioned how much profit they make every month. Not only the revenue how much money they actually take comb now. Obviously the goal here is to grow the business and make even more money but i saw a business for sale on empire flipper for example. That's twenty seven thousand dollars. It's not crazy amount of money. It's on a little amount of money either but it's not a crazy amount of money but makes around twelve hundred dollars a month in revenue. Let's say for example you bought for twenty seven thousand and invest another ten thousand in growing and marketing that business so you spend thirty seven thousand dollars of the business business so you can get the m._r. from twelve hundred to maybe four or five thousand dollars a month spending thirty seven thousand dollars one time to make four to five thousand dollars a month an extra revenue in passive revenue. That's pretty good. That's a good investment and guess what it's an asset. You may want to grow that revenue up to ten fifteen twenty thousand dollars a month few years down the line. You could sell it and make a profit on your investment just like jared mentioned. This is like the real estate market you could buy these assets and flip them later on my only piece of advice is to look at the business model see how many people employs what the market is and make sure it's a line with what you want and what you wanna do if you're not interested in would actually the business does then. It's gonna be hard for you to grow and expand it if your your hands off person. If you want something that's gonna make money. You know on a philly commission. You just want to hire some content writers and things like that. You know what you want so that way you buy the right a business for your lifestyle. Guys don't forget jarrett's amazing gift to us his free resource at buying online businesses dot com slash free resources. Thanks for the amazing lesson that wraps up today's lesson. Thank you so much for listening. Make sure hit subscribes to you. Don't miss the b._c. You get the next episode as soon as it publishes. We're on every single app. Whether it's spotify or apple podcasts stitcher radio overcast himalayas were automobile before we go on a leave you with this. This takes time to buy a business. Take your time and lie jared mentioned be open to several businesses. This is just like you'd be open to buying different houses. If you're buying a house for yourself you're gonna make a decision at the end but you wanna have something to compare to and some food food for thought you know so you can have different experiences and get some reps under you in that kind of experience of buying a business asking the right questions seeing those screen shots you know having a screen share experience. He mentioned learning about the business model learning about why they're leaving the business the potential their staff their team all that kind of stuff the bigger the sale the longer. It's gonna take because obviously the business will be a lot more intricate. Take your time and do it right. Thank you so much for listening in uh-huh tomorrow's episode. I'll see then take care <music> <music> <music>.