1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Sell Your Offline/SEO Biz and Cash Out for $XXX,XXX?

Discussion in 'Offline Marketing' started by ElectroMan, Jan 6, 2011.

  1. ElectroMan

    ElectroMan Regular Member

    Joined:
    Dec 13, 2009
    Messages:
    254
    Likes Received:
    764
    I want to share something I was thinking about earlier today and wanted to get your thoughts on....

    Introduction:

    There are a lot of guys here who work with offline businesses and offer services.

    Some of you offer SEO and Google Places optimization, some do campaign management on Facebook and Adwords, others create websites and mobile sites, and the list goes on..

    Keep in mind though, that if you sell a service one time, you don't truly have a business that is an asset - one that you can leverage in the future.

    It's like the story about the kid who mows lawns and calls it a "lawn mowing business"' but can he sell it? What is there to sell?

    But what if he went out and got his clients to become regular customers by giving them an agreement to sign for him to mow their lawn every few weeks.

    Now, he has something he can sell.

    What I'm saying is, if you have contracts or recurring customers you have a business you can sell.

    Sell Your Business?

    Most people know that they can sell their site/product/biz on Flippa, but the budget of buyers there *typically* isn't very high.

    But, if you have recurring customers for SEO or whatever else companies pay you (your company) to do then you have something you can sell..... OFFLINE.

    Let's do some math here.

    You make $1000/month offering these services.
    You sell it for 24x-36x the monthly profit.
    You make $24,000 to $36,000.

    You make $5000/month offering these services.
    You sell it for 24x-36x the monthly profit.
    You make $120,000 to $180,000.

    You make $10,000/month offering these services.
    You sell it for 24x-36x the monthly profit.
    You make $240,000 to $360,000.

    You make $20,000/month offering these services.
    You sell it for 24x-36x the monthly profit.
    You make $480,000 to $720,000.


    I guess the question is if this large sum of money is worth it for you and your situation/lifestyle, as opposed to making the money every month and potentially beyond 24-36 months.

    This is just something I was thinking about earlier today..

    I want to know what you guys think!

    Post your thoughts below :)
     
    • Thanks Thanks x 2
  2. pauluk

    pauluk Registered Member

    Joined:
    Mar 3, 2008
    Messages:
    93
    Likes Received:
    319
    Occupation:
    ?
    Location:
    uk
    Can I ask you where you got the 24-36 months from?

    Seems a bit over the top to me I would think More like 12-18 months :)
     
    Last edited: Jan 6, 2011
  3. englandrm

    englandrm Senior Member

    Joined:
    Nov 11, 2010
    Messages:
    942
    Likes Received:
    431
    Location:
    Canada
    I understand how a huge lump sum could be fun, but as someone said above the consistent income is quite nice. Each client I bring in, even if they only pay $500/m, thats 6k a year and 5k+ profit.

    My clients take very little time in management a month, maybe a matter of minutes, which will be taken care of entirely when I hire a personal assistant. I eventually hope to become almost part of the backdrop, where all the systems pretty much run themselves.
     
    • Thanks Thanks x 2
  4. mudbutt

    mudbutt Jr. Executive VIP Jr. VIP Premium Member

    Joined:
    Jun 23, 2010
    Messages:
    1,814
    Likes Received:
    4,277
    Location:
    ghosted
    I'll flip you all my smaller contracts if you want..all together the smaller jobs are netting me 12k ish monthly and 12 month locked in. PM me.
     
  5. teeniegenie

    teeniegenie Supreme Member

    Joined:
    Aug 28, 2010
    Messages:
    1,296
    Likes Received:
    662
    Location:
    The Cool Part of Vegas
    This is the problem with selling an offline/SEO business - determining the correct multiple to peg the sales price. Some industries have a pretty standard number for selling (such as an insurance agency or financial planning firm) but anything goes with a SEO type business sale.
     
  6. cicsmayhem

    cicsmayhem Regular Member

    Joined:
    Jul 13, 2010
    Messages:
    209
    Likes Received:
    49
    Location:
    Sky Net
    I have seen this idea before in offline seo biz where a guy has the biz. And offers it to forums/community to get senior partners to start it in their country. The biz owner has already the resources and employees and so once he gathers his senior partners for that biz, he trains how to start their own campaign and provide the necessary tools to start. Once these senior partners are now fully aware in handling the biz. They now hire their junior partners in specific cities of their country to hire people to do the work for them. And so the leverage starts.
     
    • Thanks Thanks x 1
  7. Tamra

    Tamra Junior Member

    Joined:
    Sep 24, 2009
    Messages:
    117
    Likes Received:
    94
    Occupation:
    Marketing Consultant
    Location:
    California

    Is it really a business or a "book of business" or a client list? Are there systems in place or do you just have clients? It may seem like a fine line, but it's the difference between being a business and being a freelancer.

    More than a few years ago, I was a VAR (value added reseller) of practice management software for healthcare providers. I fell into it because of my work experience, computer and training skills. After a death in the family (my Dad), I decided it wasn't worth it to work with a bunch of arrogant PITA's. I sold my "book of business" to another VAR. I had a DBA, business checking account and all the trappings, but I really didn't have a business to sell....just clients.

    Hopes this makes sense.

    PS. I did get a nice lump sum for my clients, but I would have gotten more if I set up and ran it correctly.
     
    • Thanks Thanks x 1
    Last edited: Jan 6, 2011
  8. ElectroMan

    ElectroMan Regular Member

    Joined:
    Dec 13, 2009
    Messages:
    254
    Likes Received:
    764
    Good distinction. I meant systems as well of actually getting the work done not just contracts.


     
  9. tygrus

    tygrus Supreme Member

    Joined:
    Mar 28, 2009
    Messages:
    1,237
    Likes Received:
    827
    Occupation:
    Engineer
    Location:
    Canada
    My guts tell me that selling an online business is something people need to keep in mind at all times. Sure, you have monthly income now, but with a quick change by google or some other entity that could be gone in a heartbeat unlike other offline ventures. Have to be careful not to be left holding the bag when things change.
     
  10. undisput3d

    undisput3d Newbie

    Joined:
    Jan 4, 2010
    Messages:
    18
    Likes Received:
    11
    Occupation:
    Programming -> Marketing
    Location:
    Online -> Offline
    Competitors are your best targets for selling your business. The problem with selling is who exactly is going to buy your "business"? Especially if they are not in your area... The nature of offline marketing is entirely local and that means less buyers of your business. The advantage of operating an offline marketing business implies that there is very little competition from others providing similar services, hence very few buyers for your "business". Besides this business requires specialized knowledge that may be difficult to explain to someone who is not already in the industry. My exit strategy is to sell the sites that I rent to my customers and then become a part-time "consultant" telling them how to do for self. You will find customers who say "do it for me" and others who say "teach me how". If you are smart you will deal with the first group for as long as you want to profit and then cash out by converting as many as possible to the latter. Good luck
     
  11. three3s

    three3s Regular Member

    Joined:
    Feb 17, 2009
    Messages:
    306
    Likes Received:
    195
    This is pretty much a no brainer. If your offering SEO services you must charge a monthly premium.

    Also, your stated valuations are based on 24x-36x of the turnover, not the profit. 24x-36x monthly profit is maybe a good valuation for a decent website selling on Flippa but for an established offline business with a solid client base, try closer to 5-10 years worth of post tax income depending on the size, stability and potential growth of the business.
     
  12. undisput3d

    undisput3d Newbie

    Joined:
    Jan 4, 2010
    Messages:
    18
    Likes Received:
    11
    Occupation:
    Programming -> Marketing
    Location:
    Online -> Offline
    Had not realized offline businesses were selling on flippa. I will have to look into that. Thanks for the tip.
     
  13. three3s

    three3s Regular Member

    Joined:
    Feb 17, 2009
    Messages:
    306
    Likes Received:
    195
    No I think you misunderstood. I was just comparing the monthly profit multiples to a website selling on Flippa. As far as I know there aren't offline businesses selling on Flippa.
     
  14. cpafreak

    cpafreak Jr. VIP Jr. VIP Premium Member

    Joined:
    Apr 10, 2010
    Messages:
    201
    Likes Received:
    36
    Very good idea indeed.I have sold some of my automated businesses to local guys.
     
  15. IGKing

    IGKing Jr. VIP Jr. VIP Premium Member

    Joined:
    May 9, 2010
    Messages:
    736
    Likes Received:
    682
    Occupation:
    Instagram
    Location:
    Ron Paul's America
    I see what you mean. Even if you have offline marketing... You can still sell that.

    For example, if you manage someones website, you can contact them and say : "Bob Smith will now be managing the website for you" or etc.

    I like your thoughts! :)
     
  16. luckyonelr

    luckyonelr Newbie

    Joined:
    Jan 4, 2011
    Messages:
    30
    Likes Received:
    3
    Location:
    The South
    That's a good twist on things.
     
  17. Moneymaker13

    Moneymaker13 Regular Member

    Joined:
    Apr 24, 2009
    Messages:
    204
    Likes Received:
    29
    This is a fantastic idea, It's always a tough decision on whether to sell your business or just keep getting cashflow.. :p