Web Equity Show

S02E07: Understanding Deal Structuring

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Understanding the various ways to structure a deal can be a critical piece to actually getting the deal closed.Subscribe to our VIP LIST

While many newbie buyers can get stuck in negotiations, a pro understands how to leverage different deal structures to get the outcome they really want.

Once you get to the meat of what the seller’s really looking for out of the deal, you can structure the deal around their wants/needs and put it in terms that are to your benefit.

In this episode, Ace and I dig into the various types of deal structures, explain how they work, and look at specific examples where they might work best to get the deal done with a seller.

Some of these are well-known (i.e. Seller Financing), but when you use these deal structures in combination (A time-based earn out with in-perpetuity payments, for example) they can get quite complicated.

Our goal is to break each of the deal structures down to better help you understand how you can use them in a negotiation/offer.

For us, this is the fun stuff. Creative deal structuring and finding win-win offers is breathing life into deal deals and can make everyone a ton of money.

Are you digging the podcast? Please stop by iTunes and leave us a review! We love to read the feedback and will give you a shout on an upcoming show!

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What You’ll Learn From This Episode:

  • Seller Financing
  • Earn-Outs
  • Balloon Loan
  • In-perpetuity payments
  • Outside Financing
  • Seller Retained Equity
  • Investor/Sweat-Equity Partnership

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S02E06: Due Diligence

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If you’ve been following along our buyer’s series in Season 2, this is an episode you don’t want to miss.

In our longest episode to date, Ace and I break down some of the critical issues and steps to take when performing due diligence with website properties.

Now, of course, we can’t cover every single issue that may come up in due diligence, but we do attempt to provide a framework and a specific way to look at deals that will help you separate the good from the bad.

We’ve put together our years of combined experience in reviewing more than a thousand deals into an in-depth review. Hope you enjoy!

One more thing – it’s your support that keeps this show going. If you’ve appreciated what you’ve heard and would like to hear more, please stop by iTunes and leave us a review! We love to read the feedback and will give you a shout on an upcoming show!

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What You’ll Learn From This Episode:

  • Content Sites
  1. Check Visitor-to-Customer Flow
  2. Sustainability/Scalability
  • Earnings
  1. Are The Claimed Earnings ONLY Coming From Site For Sale?
  2. Compare Stated Earnings To Bank Account Deposits
  3. Bring In A Professional (Larger Purchases)
  • The Website / Niche
  1. Is The Content Quality?
  2. Will The Niche Last?
  3. What’s The Site History
  4. What’s The Reputation / Backlinks Situation?
  • The Seller
  1. Are They Real?
  2. Who Have They Done Business With?
  • Not-So-Common Scams
  1. Fake leads
  2. Not just the president, also a client
  3. Double (or triple) dipping

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S02E04: Where Can I Find Sites To Purchase?

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Subscribe to our VIP LISTContinuing along with our Season 2 buyer series, today we’ll look at the various ways and places you can find sites to purchase.

We’ll cover some of the advantages and disadvantages that come with trying to find sites yourself, but we’ll also look at the various aggregators, auction sites, and brokers available.

What works for you might not necessarily work for everyone, but we’re hoping this episode will help you narrow down your search for quality websites and online businesses by pointing you in the right direction.

Having high-quality options will ensure you get a good look at the best sites available and give you a better opportunity to purchase quality sites.

 

If you’re digging the show and would like to show us some support, make sure to stop by iTunes and leave us a review! That’s the best way to support the show and we’d really appreciate it!

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What You’ll Learn From This Episode:

1. Find Yourself!

Advantages:

  1. Can find GREAT deals
  2. Sometimes built with love/care
  3. Less competition from other buyers

Disadvantages:

  1. LOADS of work
  2. Must have a process to sort/sift
  3. Seller often value their sites MUCH higher than they’re actually worth!

2. Classifieds

Advantages:

  1. Deals are all in one place
  2. Less competition from buyers
  3. Wide selection?

Disadvantages:

  1. Not checked at all
  2. Not easy to quickly check/verify stats
  3. Ton of scams

3. Brokers

Advantages:

  1. Quality selection of vetted/verified sites
  2. Great information for quick scans + due diligence
  3. Professionals w/ established process

Disadvantages:

  1. Higher prices/multiples
  2. They represent the seller, not you!
  3. “Polished turds”

4. Aggregators

Advantages:

  1. Consolidate listings from many different brokers
  2. Wider selection + can narrow down searches
  3. Similar format makes scanning better

Disadvantages:

  1. Not always up-to-date info
  2. Quality varies heavily

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S02E03: Should I Start With Building Or Buying Sites?

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If you’re just starting out, you might have asked yourself the question, “Am I better off building or buying sites?”

It’s a fair question – one we attempt to help you answer in this podcast episode.

We look at some of the advantages and disadvantages of each approach and break down the Money-Time spectrum to see which might be a better fit for your situation.

 

While we can’t answer the question for you, we hope these insights will help you make a more informed decision on building up your online portfolio.

If you’re liking this show and want to give us some love, make sure to stop by iTunes and leave us a review! That’s the best way to support the show and helps us spread the word.

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What You’ll Learn From This Episode:

  • Required Skillsets For Buying A Site?
  1. Internet savvy + Google-Fu search skills
  2. Buying and setting up domains, hosting, WordPress
  3. Intermediate skill in at least one (more is better) traffic channel
  4. Basic understanding of the different monetization methods and ups/downs of each
  5. Intermediate understanding of at least one platform you’ll be primarily using
  • The Website Buying Spectrum
  1. Point 1: No money, lots of time
  2. Point 2: Some money, good amount of time
  3. Point 3: Good money, some amount of time
  4. Point 4: Lots of money, no time

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S02E02: Analyzing Websites For Beginner Buyers

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Subscribe to our VIP LISTNow that we’ve covered some of the basic business models in Season 2, Episode 1, it’s time to start looking at some of the terms and ways to quickly scan/analyze potential website purchases.

We take a look at terms like ROI, EBITDA, and how they apply to online businesses.

We also look at some of the metrics that, at a glance, might help you quickly disqualify a potential purchase. (Or know that you need to dig a bit deeper)

 

If you’re liking this show and want to give us some love, make sure to stop by iTunes and leave us a review! That’s the best way to support the show and helps us spread the word.

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What You’ll Learn From This Episode:

  • The Metrics
  1. Multiple
  2. ROI – Return of Investment
  • The 2 Biggest Disqualifiers
  1. History
  2. The Growth Plan

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S02E01: Introduction To Buying Websites

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If you’re interested in the idea of buying websites and online businesses, but have NO idea where to start, this is the episode for you.

We’ve had quite a few requests from new buyers that we cover topics that are unfamiliar to those not in the industry. We decided to make Season 2 (10-ish episodes) and dedicate them to walking you through the buying process, star to finish.

In this first episode we get back to basics and look at the different types of websites and how they make money. We’ll also dig into some of the basic strategies website builders employ to build profitable websites and online businesses.

If you’re NOT new to buying online businesses, you might want to give this one a pass. (Unless you’re so stoked the show’s back that you just can’t help yourself!) No worries – we’ll be diving much deeper later in Season 2 when we get to due diligence, negotiating deals, etc.

While Season 2 is really dedicated to buyers, potential sellers might do well to learn a bit more about the buying process to better understand their potential customers.

If you dig the show, make sure to stop by iTunes and leave us a review! That’s the best way to support and encourage us to keep it running.

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What You’ll Learn From This Episode:

  1. How Would We Describe The Industry To Someone New?
  2. What Types Of Website Businesses Are Out There
  3. Comparing Offline To Online Businesses
  4. How Can I Find Websites And Online Businesses To Purchase
  5. FAQ

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Ep #16: How We Would Start Over From Scratch

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What would Ace and I do if we had to start over from scratch?

That’s the topic of this episode. We start off with the following conditions:

  • No Clients
  • No Connections
  • $100K to invest

This is our LAST episode (for this season), but we’ll be back with you in the New Year – most likely February or March at the latest.

So – what do you think our answers will be? Have a listen – we might surprise you!

Digging the Web Equity Show? Please leave us a review on iTunes.

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What You’ll Learn From This Episode:

  1. Where would you start? What would be your focus?
  2. What are your FIRST few steps? (First couple of days/weeks)
  3. How would you put the $100K to work? (What would you spend it on)
  4. Where do you expect you’d be in 6 months? 1 year? 2 years? 3 years?
  5. How long until financial stable? Diversified?

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Ep 14 : A CPA’s Take On Buying And Selling Online Businesses

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We get questions about the tax implications of buying online businesses all the time.

“Should this be a stock or asset sale?”

“Can I roll my sale into another purchase in a calendar year to avoid taxes?”

“What part of the sale is personal Vs. capital gains?”

We both have experience in buying/selling websites and online businesses, but when it comes to parsing thousands  of pages of tax code to find your loophole – that’s not really something we can do!

But there are people who CAN do that for you and today we sit down with one of them…

In this episode, we sit down with CPA Mario Lucibello to dig into the ins, outs, and upside downs of buying, selling, and investing in websites and online businesses. This guy’s a pro and we get into quite a bit.

Not the most exciting subject, but I had so many questions I just had to keep hammering him for the full hour. Sit back, relax, and let’s talk accounting when it comes to our industry.

Digging the Web Equity Show? Please leave us a review on iTunes. We’d really appreciate it!

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What You’ll Learn From This Episode:

  • Business Structure + Setup
  • Due Diligence With Buying Online Businesses
  • Taxes With Buying/Selling Websites

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Ep #12: The Mini-Mogul Business Model

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There are plenty of first-time website buyers and sellers, but did you know that much of the business we do is with other industry professionals?

These Mini-Moguls run anywhere from a handful to hundreds of sites and even have virtual employees and teams to run the sites for them.

In this episode, we’ll dig into some of the profiles of these entrepreneurs and look at some of the pro’s and con’s to each model. If you’ve wondered what this might look like as a full-blown career choice, this is the episode for you.

Digging the Web Equity Show? Please leave us a review on iTunes. We’d really appreciate it!

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What You’ll Learn From This Episode:

  • The Roll Up Strategy
  • Portfolio Builders/Investors
  • The Website Flippers

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Ep #11: How Can Non-Techies Buy Online Businesses?

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Subscribe to our VIP LISTMany first-time buyers get excited about the opportunities that come with buying an online business, but quickly realize they might not have the skills to manage the day to day operations.

Just what exactly are the skills required to buy the websites available?

That’s the question we’ll look to answer in today’s show. We’ll look at the base skills required and look at several different ways you can augment those skills through partnering, investing, and taking on an apprenticeship yourself.

We thought this podcast might be interesting as both Ace and I aren’t very technical ourselves, but we’ve found ways to work with these online businesses and get the job done.

Are you digging the Web Equity Show? Please leave us a review on iTunes. You’ll help us spread the word and we’d love to give you a shout on an upcoming episode!

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What You’ll Learn From This Episode:

  • Skillsets Needed To Buy An Online Business
  • Buying A Business Directly
  • Find A Technical Partner/Co-Founder
  • Find A Hustler To Back Or Invest In
  • Finding An Apprenticeship

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