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Selling your SEO agency

Discussion in 'White Hat SEO' started by thisismymp3, Jan 6, 2017.

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  1. thisismymp3

    thisismymp3 Power Member

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    let's say you and a partner built an agency the last year , for whatever reason you want to part ways , you have 10 consistent clients totaling 7-8k a month

    The only expenses we have are office space and what we pay our team to manage them 10%(new owner will not have this expense obviously)

    We have our own offsite program that does most of the offsite ($0-15 per kw our cost ) totaling $275

    We partner with yext to manage 5 local SEO accounts ($210.00)

    What's this worth in terms of selling to a bigger agency or on flippa? Is it 1-2x yearly revenue ? Which we can prove

    We will also help transition for 1-2 month, introducing them as a new team member then walking away

    Let me know want to move on
     
  2. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Jr. VIP

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    What is the reason?
     
  3. thisismymp3

    thisismymp3 Power Member

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    Different views on running the company
     
  4. Jiung

    Jiung Jr. VIP Jr. VIP

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    This post seems a lot like you are trying to see if you can get a sale here...

    Anyways, you can probably get 1x your yearly revenue for it, since you do only have 10 clients and if you lose 1 or 2, you lose a big chunk.
     
  5. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Jr. VIP

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    Does your partner also want to sell?
    Do you have an accountant to value your share?
    Why not sell your share to your partner or just buy him out?
    As you have only been running for less than 12 months, the multiplier would be months you have made a profit rather than years IMO
     
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  6. thisismymp3

    thisismymp3 Power Member

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    Not trying to get a sale on here I want a ball park Figure when I start calling local companies
     
  7. thisismymp3

    thisismymp3 Power Member

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    We talked about splitting clients but then it goes back to not wanting to lose clients that we both worked hard to attain , rather all or nothing ? Does that make sense ?
     
  8. thisismymp3

    thisismymp3 Power Member

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    Would selling for 6 months revenue make sense ?
     
  9. RoiBox

    RoiBox Regular Member

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    If your company has been active atleast 18 month and made 7k in revenue per month since then, i´d say 18 month of "profit", note that the profit is after you both have taken out your salary.

    A friend of mine sold an offline business a couple of years ago, that was an old and well buillt company with a turnover of about $6,5 million per year, that company was sold for about $1 million, that was equal the monthly profit * 18.
     
  10. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Jr. VIP

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  11. sub001

    sub001 Regular Member

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    This would be a go only if you have guarantees that the existing clients won't leave (or won't be lured away by the current owners).

    Even then, with 10 existing clients and (assuming) no existing sales pipeline, this makes sense to buy only as a short term cash cow and is a rather high risk. I would do this ONLY as a no-money-down deal, where the former owners would be getting a percentage of the revenue or gross profit for X months.

    The only thing that might change this is if there is some kind of unique know-how (process/methodology) that brings fast results and is easily scalable. Only then I would consider putting upfront money on the table.
     
  12. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Jr. VIP

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  13. thisismymp3

    thisismymp3 Power Member

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    Well yeah they would get the domain name the platform for offsite SEO, the yext platform, our pipeline of 500 leads we spoke to over the year our standard operating procedures I.e what we do , how we do our reporting and domains , accounts , telephone numbers etc.

    I realize it's a risk that's why thought of offeri a transition period where we bring them on as a team member for 2 months then pass it off .

    Ok 6-12 months profit still sound reasonable as an evaluation? We're not reinventing the wheel here , we get leads , call and pitch , this is a tough business and it's all about relationship building with the client

    No money down probably won't make sense, depending who is the agency taking over , think I want some cash for handing everything over and stepping down
     
  14. bartosimpsonio

    bartosimpsonio Jr. VIP Jr. VIP Premium Member

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    You take U$1000 a month in from 5 x U$ 200 clients, correct?

    Tell your partner you want U$ 5000 and he can have the company. In the meantime you search for 5 clients of yours to reestablish the revenue.

    That's what I'd do. Sounds like this company is over with to be honest.
     
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  15. thisismymp3

    thisismymp3 Power Member

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    Worked too hard to just get 5k I can get that in a month and half if I just take half the clients

    It's 7-8k monthly revenue minus expenses

    7-8 clients averaging 800-1500 each some less
     
  16. validseo

    validseo Jr. VIP Jr. VIP Premium Member

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    It is only worth what someone is willing to pay. The best thing you can do is orchestrate multiple competing buyers and then go with whatever the market will bare.
     
  17. bartosimpsonio

    bartosimpsonio Jr. VIP Jr. VIP Premium Member

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    Whatever you do just be straightforward with customers, let them know why you're splitting.

    Customers cannot wake up to you two having split without prior notice, they'll leave you guys forever.
     
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  18. thisismymp3

    thisismymp3 Power Member

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    Going to ride it out then at least for a few months , agree selling and not telling is a no no , that's why I thought of the 1-2 month transition phase. I was curious to what I can get though it's tempting for the lump sum and not dealing with it but oh well , time will tell
     
  19. fastlinks

    fastlinks Power Member

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    list your website and revenue on flippa.com and see what people offer
     
  20. Papasaun

    Papasaun Newbie

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    Hi there, how do you PM so I can trade reviews with you?