#21: Weekly update on digital private equity
#21: Weekly update on digital private equity
Another winter episode. The first one in 2021. ❄️
Welcome to Dealsflow.com, the newsletter about buying websites and digital assets. Inquiries, feedback, or comments? Reply to this email!
Hi everyone,
In recent weeks and months, more and more newsletters like this came into existence. I really like this one by Peter Askew in particular. I also have compiled some more here.
Also, average multiples for websites seem to have skyrocketed. While a few months multiples were around 30-35x, now they are often >40x. Everybody seems to look for FBA businesses (FT.com). And good deals get harder to find.
Why? People seek assets that actually return money for them: the return of bonds is mostly negative, the equity markets are overheated. So why not look for alternative asset classes? And why not try your own luck and buy your own small website?
For now, I have decided to stay a bit on the sidelines (when it comes to buying new assets) and focus on growing my existing assets, which is fun.
How about you? Are you buying (or looking to buy) or holding off for now? I am looking forward to hearing from you.
Be well,
Alex
🔦 Promising assets
Again, I found a few interesting digital assets to buy.
Domains with existing authority:
Buying domains with existing SEO authority can give you a head start. Why?
NewsWeekMe.com (<$1,000, ends 02/17): With a DR of 51 this 5-year-old domain is quite a catch. It still has a few keywords ranking, 5.edu links, and even a .gov link (from the U.S. Department of Labor). So if you are planning to launch a publication or news-related site. This domain could serve you well!
Domains to build a brand on:
Those domains have no SEO authority yet but are great to start something new on.
Undie.com (<$1,000, ends 02/17) - create your own DTC brand and sell simple, but good undies around the world. I love it!
TheColumn.com (<$200, ends 02/22) - build your own political publication. Leverage Substack or Convertkit to build your audience.
Online business to buy:
None this week. But have a look at the specific Flippa Search I keep monitoring.
Brain food
Read 📚
Empire Flippers introduces Empire Flippers Capital. An “easy” way for accredited investors to participate in website buying.
John Warrillow writes really good books and just published a new one: “The Art of Selling your Business”. I just bought it as I really enjoyed his earlier one.
Amazon.com Affiliate Commission Rates: A Historical Guide - If you are running a content site (or are interested in Amazon’s affiliate game) this article will be very interesting. “While it’s a bit like comparing apples to oranges due to a major shift in the Associates’ commission payout model in early 2017, the gist is that the average commission rate for peaked in mid-2012 at 9.25% and has fallen to nearly a third of that with 3.14% in early 2020.”
The Top Idea in Your Mind by legendary investor Paul Graham. An old, but a good read. Why you shouldn’t get lost in too many different things at the same time. And why you should carefully choose which topics you do on your own and which might outsource.
Listen 🎧
Acquiring and Scaling E-Commerce Brands - a fantastic listen in the “Think like an owner podcast” by Alex Bridgeman featuring Bill D’Alessandro.
Watch 🎬
How To Find the Best Affiliate Programs for your Niche in 2021 by the great guys over at AuthorityHacker.com
🎓 Course: How to buy websites for profit
Get early access to my course on how to buy websites for profit. It’s far from being done, but while I work on building it, you can already get early access for $19.
If you like are more polished one, have a look at the course by Ryan Kulp.
👋 Join our community
Join our discussion group Website Investing on IndieHackers.com.
Or follow me on Twitter.
How did you like this week’s newsletter?
👍 Very valuable. Thanks!
😐 Meh - was ok.
👎 Not interesting.
I always enjoy a good coffee:
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