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  1. #1
    ABW Ambassador Snib's Avatar
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    How to Build an Affiliate site you can sell for $1m
    http://tropicalseo.com/2007/how-to-b...n-sell-for-1m/

    I enjoyed this article. It's definitely a long hard climb, but when you get there the real question is "Should I sell?". Personally I wouldn't sell at $1m and would wait until the value is much higher. $40m sounds pretty good to me.

    - Scott
    Hatred stirs up strife, But love covers all transgressions.

  2. #2
    general fuq mrbshouse's Avatar
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    Snib,

    you found a gem there thanks for sharing. I would hold on too...to much blood sweat and tears going into something like that to let it go ;-)

  3. #3
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    That was a great article. Thanks for posting the link. I need to visit that blog some more...

  4. #4
    The slot machine that IS paid! Billy Kay's Avatar
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    a million dollars!!

    i'd be in tahiti by the close of the business day

  5. #5
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    I know at least 4 webmasters who built their sites and have been offered a $ Million for their efforts. Only one sold out and he was under 30 years old.

  6. #6
    More Cheesier Than Ever Cheesehead's Avatar
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    From the article:

    ...the following strategems have also served me well:

    * Structuring sites so that the ads are the content
    * Building traffic of visitors who are in the buying cycle
    * Finding affiliate merchants who don’t operate at CJ
    Very interesting!
    This World is Not My Home
    We're gonna go inside, we're gonna go outside, inside and outside. . . And then we're gonna go go go and we're not gonna stop til we get across that goalline! Quotes from the movie Rudy, 1993

  7. #7
    Not that fat. ReallyBigGuy's Avatar
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    nice article. From my experience I also think the larger the site is, the bigger the multiple of earnings you'll get for selling.
    in the $150K/yr range you're in the 5-7x profit range
    $150k to $5mil, in the 7x to 15x range
    $5mil & up, 15x to 20x profit..

    so if it's growing, it is usually worth it to keep building the site, and growing until you're ready to sell.

    And a GEM site doesn't come around everyday, so if you find something making good $, and you like it, then don't sell... it might not be so easy to make a second $mil site.

  8. #8
    ABW Ambassador Snib's Avatar
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    Quote Originally Posted by Billy Kay
    a million dollars!!

    i'd be in tahiti by the close of the business day
    The sad thing is the government gets almost half if you don't reinvest it.

    - Scott
    Hatred stirs up strife, But love covers all transgressions.

  9. #9
    Merchant & ABW Ambassador
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    great article.

    at $1 mil, I will be next to Billy on a beach

    spend 5% being a beach bum for a year and come back to polish up the next gem to sell

  10. #10
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    Quote Originally Posted by ReallyBigGuy
    nice article. From my experience I also think the larger the site is, the bigger the multiple of earnings you'll get for selling.
    in the $150K/yr range you're in the 5-7x profit range
    $150k to $5mil, in the 7x to 15x range
    $5mil & up, 15x to 20x profit..
    Well said.
    Sometimes a company does not even have to make money (profit) to fetch huge multiples as long as it has growing revenues / millions of visitors a.k.a youtube?

  11. #11
    Kung Fu Master Eathan's Avatar
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    That'd cover a few fun projects...
    Eathan Mertz

    Black Cat Mining - Gold Prospecting & Rockhounding Equipment

  12. #12
    ABW Ambassador newestuser's Avatar
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    Quote Originally Posted by Snib
    The sad thing is the government gets almost half if you don't reinvest it.

    - Scott
    Not positive, but I think as long as you held it for over a year, it'd be capital gains tax at only 15%

    Or it might be 5 years and 20%.. I'd have to look it up... but its not 50%

    Here's an article explaining capital gains:
    http://www.bankrate.com/bosre/itax/n...1.asp?caret=28
    Last edited by newestuser; May 2nd, 2007 at 09:32 PM.

  13. #13
    ABW Ambassador Rehan's Avatar
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    "Only" $12k/month? Come on...think big!

    It's an excellent article. I've had it as the 'link of the week' in my signature on another forum for a couple days.

  14. #14
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    With incentives you can get close to it

  15. #15
    ABW Veteran Mr. Sal's Avatar
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    How to: Build an Affiliate Site You Can Sell for $1M

    It takes strategy, tactics, balls, elbow grease, money, and smart planning. Mostly, though, it’s a matter of putting in a lot of time every day to “block and tackle” (a.k.a. “the boring details” or “content and links” or “the grind”). Source: http://tropicalseo.com/2007/how-to-b...n-sell-for-1m/
    Why would I waste my time, money and brains, just to build an affiliate site that I can sell for just $1Million? - ???

    Hey, $1M is $1M, but..... On 2007, $1M it's just about, $300k net!

    --------------------

    Try to answer this question:

    Do you want to waste your present time, money and brains today, just to build an affiliate site that you can sell some day, for just $1Million, or would you prefer to have just a (whatever) domain name.com that you can sell later for a few Millions more?

    ----------------

    Try to answer this other question:

    If just 20 years ago, you had thought about a stupid domain name.com like
    Amazon, Google, AltaVista, Yahoo, eBay, Business, EntireWeb, FindAnything, SearchHere, DogPile, EntireWord, Dmoz, etc, for how much would you have sold that .com today?

    ---------------------

    You don't necessarily have to be the one who Build the Brooklyn Bridge, in order to sell the Brooklyn Bridge, or make the money from the toll at the Brooklyn Bridge.

    Soon, you may not necessarily have to search just Google, AltaVista, or Yahoo, to find that thing. You may one day just always search, just one new search engine [coming soon], to find what you seek from the EntirePlanet with just one search engine, with the right search term like this: "Im looking for this (key-word) thing"




  16. #16
    ABW Ambassador Snib's Avatar
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    Quote Originally Posted by Mr. Sal
    Do you want to waste your present time, money and brains today, just to build an affiliate site that you can sell some day, for just $1Million, or would you prefer to have just a (whatever) domain name.com that you can sell later for a few Millions more?
    So you're saying we're betting off searching for a million dollar domain name than building a site?

    - Scott
    Hatred stirs up strife, But love covers all transgressions.

  17. #17
    ABW Veteran Mr. Sal's Avatar
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    Quote Originally Posted by Snib
    So you're saying we're betting off searching for a million dollar domain name than building a site?

    - Scott
    Snib,

    To your question: "So you're saying we're betting off searching for a million dollar domain name than building a site?"

    Yes, and No!

    ------

    Scott,

    This is going to sound trivial, but:

    We're on 2007 today, but nevermind all the superstition going around.

    What domain name do you thing is more $$$$ valuable now, 2012.com or keyword.com?

    ...

  18. #18
    ABW Ambassador Snib's Avatar
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    Quote Originally Posted by Mr. Sal
    What domain name do you thing is more $$$$ valuable now, 2012.com or keyword.com?
    Most certainly a domain that includes a keyword. I haven't seen a single numeric domain gain mainstream success. But what does this have to do with my question?

    - Scott
    Hatred stirs up strife, But love covers all transgressions.

  19. #19
    ABW Ambassador netnow22's Avatar
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    WHy would anyonme buy an affilaite site for 1,000,000 dollars? Unles you have 30 million repeat customers, this will nveer happen

  20. #20
    ABW Ambassador Snib's Avatar
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    Quote Originally Posted by netnow22
    WHy would anyonme buy an affilaite site for 1,000,000 dollars? Unles you have 30 million repeat customers, this will nveer happen
    You definitely don't need 30 million repeat customers to have a $1m site. In fact if you had that many repeat customers your site could potentially be worth $1 billion. I'm not sure how many users YouTube had when they were bought out, but I wouldn't be surprised if it was somewhere in the neighborhood of 30-50 million. I think a sales oriented site could easily be worth $1m at just 30,000 repeat users.

    - Scott
    Hatred stirs up strife, But love covers all transgressions.

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