Matt Raad
speaker
358 appearances
2 recordings
1 series
first heard Nov 2024
last heard Nov 2024
Matt Raad’s voice in public audio — every appearance, attributed to the second.
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Appearances
So it is a pretty good starting point, that three times.
And what we find with online, particularly, say, content websites, advertising sites, affiliate sites, um, and e-com sites, it's pretty easy to work out the net profit because you say we take out the costs that are pretty much fixed, or not not so much fixed, but the only
Variable, the biggest variable is the paid traffic.
When you're doing due diligence, we just need to work out how much or is the seller doing much paid traffic.
The other costs are you know content writers, backlinking, all the standard stuff that if you're an SEO are, you probably already know what you would recognize all the costs in the cost side of their PL.
So there's with online businesses, they're very simple to work out.
They're typically very high margins.
You know, there's
A bit of hosting, well, that that's next to nothing.
It's just the team costs, how many people are on your team, and basically the cost.
There's no shouldn't be any real major surprises with online businesses, particularly if you buy a website through a broker.
Once you get into buying bigger websites, the brokers are awesome at helping you with this and laying out the PLs and and the net profits and things.
This is where the fun comes into it and the opportunity.
So there are lots of websites out there.
Like you said, Ben, uh, you know how you mentioned uh certain service businesses effectively have a zero profit.
Well, of course, there's lots of online businesses that have zero profit.
Now, this is where it gets really exciting when you know what you're doing, because theoretically.
We can negotiate with them and say, well, look, your site doesn't make any money, therefore, it's not theoretically worth much.
So then the negotiation starts stemming around exactly what you're asking me.
Okay, the traffic value.
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