How to Buy Online Businesses w/Jaryd Krause
All, right we are live we are live. Are you ready? Jerry to get started here? Are you ready for this one? I'm ready I'm pumped. All right. So you're saying to us just if people started, you're saying that. The best way for that, you think possibly is for people to actually by all businesses as opposed to anything else. Is that correct that what you're saying to us today? Yes if you want to. If. You WanNa have an additional income stream or replace your income stream. I personally believe the best way to do so is buying a website business and everything else before it. In so many different other investments, and I believe this is the best possible way. We're going to see what we dive into this and We'll see we'll see. We'll see how it goes. We'll see how it goes. All right. That's what's going to happen right now in this episode of the Authority projects. All Right Ladies and Gentlemen Boys and girls, Feast your eyes and ears. It's that time. Again, we are live with another episode of the Authority Project. It's the video podcast dream Don facebook youtube twitter, and periscope where we talked to digital marketers, business coaches, and creators of all kinds on how they built authority field and how you can mimic their success developing authority building your audience, and attracting better clients to your own business. Now, without further ado, let's bring to the verge. You will stage your host Brian Arnold. And we are back on the virtual stage here. Our my new good friend we just got just popped in. Is Jared Kraus's I. Hope I got that right that right here. On mutual go ahead say it one more time. Yeah. That's right. All right. So we're we're I'm excited because this is a brand new topic. We talked a few months ago I believe. You said buying online businesses like, wow, this is gonna be good because no one is talking about this. I think I think it's a kind of a underground thanks for me. I think even do I know about the about the The. The category. not a lot of people talk about just buying a business in this in this way. So I'm excited I got questions I'm sure people will have to have questions as well. Soviet. Questions people who are watching you right now chime in don't be scared go ahead and give some questions. So before we do any of that however. Please tell US jeered who you are personally and professionally. Personally on On a SOFA I'm a lover of philosophy on business and professionally I teach people to buy online businesses a podcast in older things around that community and courses, and all the things that people needs to. Get to buy online business also help you grow the online business wants their bulletin with people in a circle mastermind so I guess that's a quick snapshot. That's perfect. That is so perfect. So tell us what you're what what current project are you working on right now. Building. My portfolio. That entail Buni portfolio online business. Okay. GOTCHA got. Yeah. Yeah. Awesome. Okay. So let's dive dive into it. So tell us tell us jared what led you. To the point where you said to yourself. Bind businesses is the key for your success what was your a Ha moment, but let's you to that. Moment was. After Long story short is operatives plumber and I didn't like it need to get off the tools. So I ran oyi inside of traveling in Braga the job every time inside mcfaul Joe back. Again. In Image Twain try to work at Alec and make money online in us is struggled to do. So I started my own website businesses. So saw travel blowing business in just didn't really take off in all still plumbing in Montana was when I was. Always on the tools and I think I was rating listening to a bulk or an audio the time And I was working during the day in people that was like sixty plus sewer. He'll the tools and I can't do this. Until on that age because I'm GonNa miss that a lot of things that I wanna do my life and so. I came across a stat and he stat was my a Ha moment. It was my massive turning point in that stat was that ninety percent of all startups file. and that just really spiked to me where a full will hang on a second on how to run these businesses of stop. Them from. Scratch? Really Finding it hard to get to the point where I'm making enough income to pay my Lai replacement in common in pay from Omaha expenses in Libya phase stops in plus hot chance of filing for these already was. So if businesses at the early making consistent income, somebody else's putting the sweat equity in the hardware. While waiting by one. Because as poss- that ninety percent failure right and that was my Aha moment that was like, all right. That is, that's an idea I need to go away in research led me this path to buy multiple businesses. Wow. Okay. So let's let's let's get into some how to. When you're researching. These businesses, what do you make? Up A good investment. Question is so many things. I figured that's what yeah go ahead. What would you want me to narrow down to one or two things all two or three things? Give me give me two to three things about that gimmie three. Yeah. Okay. So I would say the first one, what makes good business is a business. Diversification of traffic. Now, what I mean by diversification of traffic is that not rely on one single source of traffic coming to their website business. For example, if all the traffic's coming just from facebook and face changes, your algorithm than you're gonNA lose a lawyer traffic, which means you also lose a lot of your revenue. This has happened to me before with my marketing it's also happened to so many people that have much traffic coming from Google search if Google changes that algorithm and you lose some kiewit rankings on your articles or whatever it is on your pages than you can lose a lot of traffic and the people that have A. Websites where Twenty percent of the traffic is going to one article thirty or forty percent of the traffic is going to one page, and if that gets the Bank of the of the ranking top of Google, then you lose forty percent of your business forty percent of your traffic's crazy. So a good business to me number one is that it has a good diversification of traffic sources. Secondly, a good business what locked in a good business is a decent diversification of revenue streams. For example, sometimes, people will have one revenue stream all set, for example, drop shipping business. Where people can buy products from your son and you don't stop them a supply it does and you run through the supply. If you get one supply and they've run out of Iraq's will they closed down then you lose your whole business, you lose all your revenue stream. So have multiple supplies. Also, if you're using affiliates affiliate commission than have multiple affiliates. Is suggest having a good diverse range of revenue of waging the revenue from because you lose one of those revenue streams even if you look traffic coming. You might use a lot of money. So I think that's really really important, and then I think it's a last league. It would a business that you. Know lack in understand. So, what I mean by this is Business that you. Might not understand at the stop for example, load of my clients people to join mock community where I teach them. How to buy websites. I joined courses in mentoring will help A. They may not know all the business models, but they learn which business models they. They could possibly purchase and the one that understand the most or excites them to run. The most is one I should go down and then you can start opening up field of education around how that business model runs stuff that I teach as well. And then you can run and grow that business. So I would say definitely have a business that intrigues you. See The passion about you're excited about at all knows something about so that using that leverage is important. So is so which is saying that don't it's not just about money. Basically, they'll just chase the money even though it looks good. You have to really really know what you know something about it basically, right We'll that's US lots, assignments life. If you just chase the money, then you you don't really lack. End, up way you are going to be fulfilled. You'RE NOT GONNA be fulfillment is more important than money and the fulfilled like why your chasing to a website and replace your income and making make an income from doing this it's not to make the money. That's that's that's secondary primary really is the fulfilment of not having to work Obama's been Tom with your friends and family through the things you love with people that you love so. Deep you chasing if you said on the wrong goal. Then yeah you're in big trouble. It's just a vehicle. It really is. It's it's hard because I. Especially right now in the times, they sometimes have we are in in this. Kind of kind of global the people are. Obviously. Concerned about money right now, maybe more never concerned about what's going to happen what am I gonNA do? What can what can happen so? I'm glad that you made the point is still has to be about something that you that you are. Interesting. Basically or it's just. Not GonNa not GonNa help you long term so Tell me about the red flags when you see see company or a business it maybe maybe. I want to clarify this first, clarify what you mean by an online business online website and what that means reading get into that. So a mixture that we dive into that what you mean by an online business. So what I normally take. Three Kayole pillow talks of online businesses. One is a content website content websites website that publishes. And I get a lot of traffic and views to the website, and this could be like a blog could be review website. It could be something in a website about a specific niche. or a specific product, and they will make money through ADS or affiliate commission. Took than pushing through what other products so that's content sought. The second one is a commerce business, right so what e- comas business is where people will sell physical products or even digital products now if it's physical products. They could be say your own product, you the manufacturer and you put into a three, which is a third party logistics could be like Amazon FBI or could be your on the potty logistics you workout with somebody else people will purchase from your side and then that way that auto filming agency we will call them will send that product out to the. Customer for you or you can do itself product distribution at a time where you have in your house garage or your arm warehouse way you distribute these products. So that's an example of e commerce business. You can also use drop shipping with a lot of people have heard about trump's sheathing and the last one, the third one that I like to talk about. amendment modal or SASS model on WHATSAPP stands for is software as a service, and this is where people will pay normally a monthly quarterly or annual fee to have access to a tool or a database of content. So for example, a database content will be net flicks all audible where people pay a fee to get access to a database content and a service or tool might be some sort of accounting software or what you'll using what we're using now, strain yacht where you can pay a fee to use this per month or per year, whatever it is or amount software provider whatever it is So that's some there's three K. tops of businesses I have helped people by. Variations of those businesses as well like Harvard's on. Then you can buy APPs on not so much teaching people to buy APPS, but mainly these three types of businesses. Awesome. So that's the stopping to glad to clarify that because I don't let people know. What on businesses. What are the red flags because? People will be listening in on this and saying. Kind of? Risky. The investing anything is is is the risk, but this appears like now it is something that I really can do on. Average person do this. What are their risk? What are the red flags about doing this? I love that question in Europe. All investing is risque and it's not just. Investment of money isn't just risky luck. You can invest your money in a car that's not a good fit or a liability. Voss same thing as the autonomy that can be a bad investment as well. What I'll say is that all risk is like you said, can anybody talk to somebody you know just stop doing this and my answer to this is is yes and that can be for any investment category not just blowing online business and the reason I cited specifically to buy online businesses the. Risk is minimized by education. So all risk is minimized by education. So yes, you can do this but you I you need to educate yourself I run. So once you've educated yourself, then you can become conscious of those red flags. What's the wildlife explaining that if somebody is getting ill? And they just keep getting ill getting ill that illness could turn into a cancern and could really really stuff you up could end your life right however, if you to get ill get education around that illness may be and go away in and dog does I go to the Doctor Ryan and these could be like a red flag and once you become conscious of that then you can trade it then you can look out for it. But if you conscious other than it's GonNa Affect you it's the same with a business in anything you purchase if you're not conscious of the risks. A The red flags then that can affect you. So we need to educate yourself to become conscious of risks and you'll get your question was awesome risks. Will it can be? not enough diversification and traffic can be. It can be enough diversification in revenue and it could be small things as well like some people might have done. Some dodgy. Is your building techniques, right so it could be black hat versus white hat techniques. A could be that they have hidden money or they pay for expenses in they haven't put on the profit and loss statement it could be this multiple and we could go through so many what I'll do is I'll to teach people how to do that due diligence and I feel at a special full they submit that utilize report to me I, go through and I review it for them and point out some of the things in case that Mr just in case. So if you're going down this route definitely have someone to go over the distance you're looking at the Jill you've done. Does that help. Too many red flags but It's million. Works well up here. Obviously. I think it's just like any other investment of you're doing stock. If you just a reckless stop, you have to really know what's going on. You would think so. I think you're going to dive into this. But I'M GONNA I want you to to address this. About the maintenance, your portfolio. of the different sites, but it's got to be. Some maintenance involved but this these new online acids that you're you're requiring in if so what does that entail? What is that look like? Yeah of course, maintenance and maintenance can be just running the business like okay of the business. So what that entails is let's stick with content because the first one that I explained. With a content sought, you need a maintain the SEO profile of the website you need to maintain your traffic rankings and you also WanNa, maintain your age, you add earnings or your affiliate earnings so How we maintain this is the Simon different steps in in doing. It would be producing content. That's SEO friendly. Posting, on social media, posting images on social media and driving traffic from Google and social media to and and then maintaining the ads might The ads in the rob position on the page and all making sure we have the right affiliates rot affiliate Commission Amount productivity whatever it is and how we do this is like it especially while we go with the team right. So we the assistance that no this we put them through training and they go in you know we we speak to them once awaken night I get the work done. So the maintenance for that the show. And it's the same. You could put a business what you work yourself, which I've done, and then you can purchase a business. The Earth has a team attached to it. or You could build your team and you can touch business and attach your team to the business which is what oh so. oddball businesses as well, and that told me everything about the business, which is pretty it's been pretty cool to learn from from the team. So People are getting to this feel like you'll. You'll going it alone. Let's the one big misconception dot nature. Even if it doesn't Albertine, have somebody to work alongside with you like a mentor or coach. That's very interesting that you said that that's the one thing that I haven't haven't taught. Wasn't aware of that. You can actually built by a business with the team attached to it. Stop. At his? Very interesting. Must Must Myself This morning just this morning opened up an email and just like when properties of a sale you might get out from Your Property Burka I. Get them for my website broke up and those business that spousal haven't done you but they're gonNA, team attach with it and I can purchase detainment. Cool. Wow. Stuff. Okay. So I'm actually this question you can say, you say, no, you don't want disclosed without but. Are there places that you frequent or people came frequent right now just to look at where they there. Would they. Talk about what bit about business to buy so forth. There are places with. These things. So do you want to share that or? Right. Gerrad ahead. Yes Oh like. Buying property a physical property by people listed properties for sale on the Internet and you can say how much the property costs and everything that's involved is exact same with buying online business blog website business is that they ll digital properties, these websites they tell you how much the property the business worth how much they making per month what the expenses are and Hammani? Were required to run the business. So it tells you everything about the business which quad exciting. There's a couple of places first one is I WanNa say this with the caveat must be will try to go by business from. and. It's really hot and probably the best place to go if you're a beginner right I I WANNA learn g diligence. This is one of the biggest marketplaces code flip up if alive you probably heard of this thought it's you WanNa make sure you know what you're doing. Really do most most of my clients if not all of my clients purchase businesses from actual burqas. Some that you can check out his if e international dot com. EMPIRE FLIPPERS DOT COM Investors, DOT club. Quite, light brokerage dot come. And then if you want to find more others also motion invest dot com. If you WANNA find out more than you can just Google website brokers and that should be bunch a bunch of website brokers you can test out check. Okay that's great. Stuff man. Your Your. Stuff. More more than more than I. Thought they were I know there are certain certain places where they have like you can actually buy and sell like Sass. Or SASS companies or People who who have asked, but the I was looking at the other day wasn't. Seemed kind of suspect but anyway. If the international dot com mainly SAS and APPS. Okay. All right great yet. Okay. Check that one out. So this get into why you feel is better to make revenue online doing it this way will you buying buying businesses as opposed to? Say. You know me writing a book and trying to sell that or be. Around and make my own course and sale that. or being a coach in selling my coaching services. Why is this better? Floor is yours. Yeah. Thanks I think. I think he's a good star Ryan I think the IT depends on the motivator of the person and where you're at in in life of feel that must people have a goal? That they want to replace your income so they don't have to. Now. The reason I like this method most is because. When you are trying to stop something rights wrote a book started get people in it takes. So long to build an audience takes a long unless you've got a lot of money and you just inject a Lotta money into into marketing. Do this organic lays is really hot and almost non-existent. Because it's pied apply will now in the online business spice. So the way I feel this is better is that what you're doing is your investing your money to buying an income stream in an instant income stream. So if somebody wanted to go site by business full honor, thousand dollars tomorrow, right instead of buying a house, they could purchase a business is backing thirty three, thousand dollars a year right? So could you just under two grand a month? Old Just saw just. Probably just over two grand, a month masses is correct and so that is an instant income stream and. The Gulf of May to teach people is to have less stressful life. is to. be able to earn an income where you're not stressing about like our outweighs at it was coming from and that in common any vote that income and have control of your income and your life and we in a job. That could be stressful. 'cause you don't know what's going to happen that could anytime. In a business you got control over if you know what you're doing, you can expand it and you don't have to make. Make decisions by stuff stress right when you will stress in your job and you're trying to make money, and then you'll also trying to start a business. Then you can make emotional decisions that make it hotter for that business to grow all make it easy for that business to file. So I'm all about. The goal of like having a less stressful life. and. That's what I believe is is this the great route is because you can buy an income stream. Sounds great man. It. Sounds like a plan for people who who are always had this idea like if you're introverted shy, you don't WanNa do like I'm doing I'm introverted too. But a lot of people don't want to be on the camera they don't want to go through like. Being in the spotlight. And I don't get. Me Wrong I mean I mean this is like the only thing isn't there's another thing to this that of like this where you don't really have to be in the spotlight in is that correct about that? One hundred percent. So some of the richest people in the world that ability not billionaires you don't even we don't even know who they are not just isn't that awesome like you don't need to do what we're doing Brian and get on the Cameron Show F ice in. An have this this energy this positive energy will it's. I genuinely love what I do if you can't sell. But there's people that genuinely love what they do but they don't feel like they need to go shout to the rooftops in that can sit behind a computer screen and just be the best in the world adults in those people around and if that's your profile, if that's you be more who you are otherwise, you're just going down around, that's not going to end up. With filming. So yeah, you spot on you need to pay this. Is this object all this media media. Yes, it's something that I teach I wanted to know that there are other ways was always another way to do it. This is definitely this is I wanted them on here because I always preach like build it, share it. You know because out there. So you face and some people just don't want to do that. You know but there are other ways. This is why he's here to sit by jared is here to show you one of those ways is another way Fully of marketing I haven't gotten I need to get a guy on here to do that. They'll try and get on but he you know but that to jared so yeah. Yeah. But which is really big big part of this these sites that you that you're that you're buying obviously. I lot of them are affiliate are websites and Olivo websites you purchase. Just. That united need to show your face like this is the beauty of the first three businesses I. bought were somebody else's face somebody else's brand that I built up ninety being that personal brand or it may have been the actual is nice brand and as like. If Way. If just ISAS owner of Amazon didn't decide to show his face. That doesn't matter. Ashamed showing his vice doesn't build Amazon anymore than he has just done sitting behind a computer with a matching tame where Amazon would still be the biggest business in the world. Without him showing his face and that's the beauty of this like is you? Can just invest on and not show your face in. For. Privacy is a really, really important thing like Audit Shea Oughta go round on instagram sharing my whole life Oughta Shit content that people wanNA consume about this civic subject yeah absolutely. Glad you confirmed that would be so. I wish we had more time I wanted to. To. See you can is real quick for me like. You had you talked about the red flags of you know about buying stuff but I think there's an another side where you have a business and you're thinking about selling one day. Can you can you just go down? Maybe maybe this is part of the last. I'm trying to figure this out here. We can just. If you WANNA if you WANNA go. Falungong I'm happy long about I'm happy to talk to how to set your business up. Sylla's well, if you lie. Yeah. That's that's the exact question that of course. Doesn't show go right ahead. Cool will if you're going to sell your business I believe it's best to set it up because you WANNA sell a business that's attractive to a buyout and the reason why you want it to be attractive to a is because you're going to get a high multiple which means you're going to get a high price for it. A couple of ways you can do this so. One of which is making sure that you'll books and your accounting counting and your profit loss Dighton is in good order and just like clear concise and makes sense and is is current and relevant and easy for somebody to consume in understand. That's that's number one. Number two is. A business that's not very reliant on yourself. Personally. Now, what that means a lot of people WANNA buy a business so they can earn an income stream that don't want to buy a job so. If you. Sipho makers I don't want to buy job on apply business that isn't required doesn't require a Lotta work for me to run. In that could how you could set your business. So it's not so relying on you is set up. Good. Systems. Good processes in automations and that can be done through. Official intelligence right. And creating some sort of tool or system that works I've done this for myself in my business and I didn't know how to do it at a hot developed adductor or you could toss it can't be done by. Outsource them to a guy and get the doom trying them up and have that business running like a machine without you the tons of a prophet without you. That's a lot more attractive when somebody comes to the business guy wow this business could run without me. I understand the profit and loss statement. I know what I need to do to run this business. It's a far more attractive business people pie a high multiple for, and lastly is diversification of risk. So this is the tractive people as well. So if I go to go to look at a business antibiotic, good of diversification of affiliates or good diversification of revenue from. multiple different products will multiple different supplies. At an good diversification of traffic from. Google social media and pay traffic. Then that's more attractive to Maine. Because there's less risk within the business. So the the key things you wanna I'll just sum up to the SRI K things is one profit loss be very clear concise Asia to rape to have a business that is a machine that can run almost without you. Annan three good risks others the cash within the business. Perfect man. That's awesome. Awesome. Let's increase stuff man I have this let one last question now because you just you just Perfect with those answers unbelievable man. Unbelievable. So last question access access of all of my guests. They're here listening to you. They see you. They love what you're doing. They, WanNa do what you do or they have similar similar interests in goals to doing this. Can you give them just if someone was asking you point blank this question how do you become an authority in this space? What would you? Give the floor. Yeah. Space or your space, all any spice, the any spice, this space of buying online businesses. Yeah How do you become an authority? Authority is somebody that is amazing Niger. and. People want to learn from them because they know what I do and they practiced the So long right they've got the not just teaching regurgitating theory they know it because they living it and breathing it. That's how you become authority in authority is made up of a couple of things. One of which is like what mentioned just previously now is living embracing it secondly is doing it for. A long period of time and not just one year urine authority. I'm talking ease in years in years up two decades and decades, and then you can become an authority. The third thing is. Documenting sharing. And giving people will serving people. In your nation in this nation, helping them with their problems, helping them solve their problems, the three things that you need to become an authority. I love it man. You heard it. Just, a love, your three things th- perfect. If anybody knows by anything always doing least in three at least three. Perfectly today. Multiple Times jared just incredible stuff man incredible stuff I really enjoyed everybody got the gist of the I'm not just one trick pony here. They're all so many different ways to be able to make money line in different ways of being the in digital or otherwise. So Please tell people right now. Where they can find you to do to to to get them further. Yes show, you can go to my website buying online businesses come We have the right in the top three best passive income podcasts online. So if you wanted just son of test this out, then you can listen some podcasts if it's for you co but not the that's great as well. Because discount is another route that he's brought full you. So check it out. If you like anything, then you can ask me questions from the sought to. I love it. They go by business buying business, DOT COM perfect get a hold of this guy he's everywhere. Seem on Youtube or Sossamon on Youtube. So guys this guy is he's the real deal. I hope you'll help me you heard that today and that's why the show I reached out. In with respect to WHO, but it doesn't matter. Remember. But I'm glad you're here when connected and I'm glad you had have you on the show people? Build that. Steal my motto is still build it Shitter share England especially if you WANNA teach. Teach something so. But building share and they will come and if you want to start dying lab is this is definitely a guy you WanNa talk to. that is all I have the yesterday before we go any words of wisdom lasts words though. Lost wisdom if you want to do something. And you want to be successful in it then give yourself time put stress on yourself to make it happen not because that's where mistakes can happen. Give yourself a good chunk of time talking one year until he many is in two decades, and that's going to allow you to make better decisions because you're for the long long term. Perfect. I have nothing else to say about that everybody. That's it. For this episode of the Doria Project I will see you on the next one piste. Thanks. Bye. And that's rapper this episode of the Authority Project thanks so much for tuning in, and if you like what you heard, we want to hear from you subscribe rate and give Honest Review Sharon tell your friends. So they can here too and per even more authority building tactics be shared a sign up at the authority letter DOT COM, get free weekly content and ongoing digital product giveaways to help you on your entrepreneurial journey. We certainly hope you got a key takeaway or maybe an Aha moment from today's broadcast just remember it's your authority, build it, share it, and they will come until next time.