Empire Flippers Guide - How to buy an undervalued website

hey what's up have you ever wanted to buy a company online that gives you passive income but you aren't really sure how to evaluate the business in this video I will show you how to evaluate opportunities on Empire flippers that will help you find companies for a good price you can buy a profitable business for less than one hundred thousand dollars that gives you more than sixty five thousand dollars in passive income this could be an addition to your current job or with the right business it would allow you Financial Freedom without having to work another job again let's get right to it buying your first business can be scary to lower the chances of getting scammed I will show you the things that I look out for before buying a business and then I will show you how to find a good deal alright first thing we do is we go and search for Empire flippers we go to the link and open the website this website lists hundreds of companies that are for sale for example the buyer doesn't want to do the business anymore so here we can see this is the main page and we can look for listings I usually just click on Marketplace and I don't want to spend 30 million dollars on an online business right now so let's just go up to 120 so let's do 200 000. we just click apply and here we see the list of all of the listings that are currently available for less than 200 000. so how do I approach looking for business we see here the current price the monthly net profit the monthly Revenue the monetization method uh the monthly multiple and then how old the business is or when the business is created if you'd like you can select a different type of monetization for example if you've already had experience with affiliate links or with Amazon FBA you can just select the one that you're comfortable with I'm just going to click all monetization methods and browse here we see a business about digital media it costs around 220 000 with a monthly profit of four thousand and a monthly revenue of five thousand this leads to a monthly multiple of 50x so the monthly multiple is just the purchase price divided by the monthly net profit I usually want to look for a company that pays back itself in less than two maybe three years but I don't want to go above that unless they show a lot of growth and in this case they don't seem like they're growing in the revenue so because of that I'm gonna go down here this looks really interesting it has a monthly multiple of 25 so that is a little bit cheaper than this one and they also have Revenue growth however their profit is going down so I'm going to keep scrolling and see what else I can find here we see an apparel business I'm not too interested in that Finance information monetization is display advertising I don't have too much experience there so I'm going to keep scrolling we see affiliate links uh Amazon KDP um Amazon fulfilled by Amazon um all of these have relatively High multiples so I'm not too impressed right now um here we go here we see a children in home care which is an Amazon FBA business selling 480 000 they make about ninety thousand dollars in net profit a year so this could be something interesting so this is something that I might want to check out but let's keep scrolling before we get into each individual business we have an information company um that has a decent multiple but they're also growing fast so here the only question is um display advertising again not really my favorite Niche but everyone has different preferences all of this looks really interesting again we come into the 4D multiple so I'd rather wanna just skim through these first we have a personal care business which is Amazon FBA they have a decent multiple so they would pay for themselves if the business continues within two years so that is actually something good so this is something else I would want to check out and here we have some more businesses let's narrow down our search a little bit and look for something cheaper that is a little bit more approachable let's check for 120 000 dollars and searching we have another information business Amazon Associates so they probably have affiliate links as well but again a high multiple um an Amazon FBA culinary not too interested and display advertising um very interesting here we have books so again another KDP uh I don't have a lot of experience writing or running a writing business so um here we have a company that is a little bit cheaper so actually this is really interesting purchase price is ninety thousand dollars they make a net profit of 5700 that's around 60 000 per year with a monthly revenue of around 330 000 per year the business was created in 2018 and they did have a revenue decline of nine percent in the last 12 months and the profit increase of 12 so this is actually something interesting so let's uh let's view this listing um here we can see the assets that are included so that includes the domain of their current store Beyond Amazon then we see the supplier relationships so they would give you all the skus that they're selling the social media accounts trademarks email lists with a thousand 200 subscribers so this is actually really good this means that they already have existing customers that like their product so here's a the listing summary so pretty much all we need to know is they are Amazon FBA this is a company created in February 2018 and the culinarian food and Beverages and kitchenware Niche so this is a very broad Niche but it looks like they have found 12 core items that they're selling that make up all of their revenue and the best-selling product has a 4.6 star rating and over 580 reviews so once you acquire this business you acquire all of those reviews and that will rank you pretty highly on Amazon and the sales of this particular your item will just continue [Music] it says that the business earns the majority of Revenue through fulfillment by Amazon 97 and only three percent through their Shopify store it tells you a little bit about the products so they're manufactured in China and then they sell in the US and in the UK um they talk about overflow inventory I'm not going to go into that the inventory is around 3000 units in the US and 1 400 units in the UK so that's quite a lot um but it looks like with that kind of Revenue you do need to have a lot of inventory to sustain that um it looks like the Shopify store also contains uh 300 articles that means that they get a lot of organic traffic and they actually say that right here the organic traffic um is 87 but they don't list how many website views they get so I think that might be later in the article where they show the exact numbers the US is about 60 of the revenue UK about 10 and Canada another uh nine percent um and then the top three pages on the side make up 10 of the site's total views so it really shows that they have an asymmetric distribution of their products and that the top three products are really the core sellers of this whole business um it says here that is very interesting to me the seller spends an average of seven hours per week on the business so that is something I look for it shouldn't take too much of my time if I want to run this as a passive income opportunity um and the they work on mainly customer service managing Amazon PPC campaigns and fulfilling Shopify orders so this is also something that you could Outsource to another person uh maybe find a a virtual assistant that can manage customer service or that has experience with managing PPC campaigns and then can fulfill Shopify orders um and manage inventory additional growth opportunities include releasing more of the skus into the European Marketplace and switching to the local FBA fulfillment in Canada to increase profitability so this is something that I would be probably less interested in however I would be really interested in the data of this company in order to see which of the three or four products like perform 80 of their revenue and then really focus down on those products and try to find more products like that let's look into their numbers here uh here we have their earnings so it looks like over the last year they had really strong earnings in December so it might be a seasonal business something that people give each other as a gift so that they purchase that mainly in December for Christmas let's look at their all-time stats so it says they were started in 2018 unfortunately we don't see the numbers here so that makes me a little bit sketched I would like to see more data going back to when they were founded however working off this data here again we see a spike in December 2020 and then in June 2020. overall this month was really good for the company they made a net profit of thirty two thousand dollars so my big question here is can I replicate these numbers can I go and make again uh thirty two thousand dollars in net profit and ninety thousand dollars in gross revenue in the coming December for the Christmas month looking at the broader Trend it looks like they have better sales overall the previous year but the sales are kind of declining now so this might be a reason why the seller is selling this company let's look into the traffic side this is less important to me because they say that they make a small percentage of their sales uh only three percent from Shopify but it still shows the interest in the company and we see that they have about last month they had 30 000 total page views and 23 000 unique users which really shows me that this is an established site that gets a lot of organic traffic and this is really good we see here the growth in traffic and it's pretty steady so it looks like they have pretty good SEO or search engine optimization the risk uh they're pretty standard here an increase in Amazon ad pricing could make ads unprofitable this pretty much applies to all FBA accounts or FBA businesses and Amazon can suspend or cancel your FBA account due to breach of their terms of services so unless you don't breach their terms of services you should be fine the opportunity these include more campaigns fairly standard different geographies I have lived in Europe but I wouldn't want to start my FBA business over there and really focus on that market right now I want to focus on the North American Market but that is also an opportunity that I see in this business here we see that the work and skills required is around seven hours per week and the core skills are attending the customer service manage Amazon PPC campaigns and fulfilling Shopify orders managing inventory so these are all pretty basic so most people could do this or at least they could learn how to do it in a few hours or at least a week or two and then get good at it so that's a good sign the seller support includes 30 days of email support and two Skype calls as well as traditional casual support for uh six months if needed so I would like to see a little bit more support here to calls is a little bit low but that is fair the reason for sales says that the seller would like to explore the other opportunities so if this is too broad for me I would really like to dig into this and see more of their numbers in order to see if the seller thinks that this is not a good company moving forward um so that would be my next step so what else would we need to know in order to make an informed investing decision here so we would need to see this data I'm unfortunately not allowed to show this to you based on the terms of micro acquire this is all confidential data and I signed a terms of agreement that I cannot share this but if you're interested in this data let me know in the comments and I will make sure to include that sort of data in my next company review um they also show the social media channel so I would really want to see what is the website what are the products before I make an investment decision and look through the frequently asked questions by others uh buyers um overall I think this would be a great opportunity uh the the price looks Fair ninety thousand dollars for a thirty thousand in monthly revenue and uh about five point seven thousand dollars in monthly net profit um so my next things what I would do now is I would contact the seller uh get on on the phone with them really ask them more questions about what are the products what are the problems that they faced uh why was the month of December such a big outlier and why do they think that the revenues decline from the earlier years in 2021 and 2020 down to where they are right now they haven't declined completely the cross gross revenue is still over 11 000 and to uh two thousand in profit but that is not the the 5000 and net profit that they advertise that is just the average so I would really dig into what it does this look like right now I would do a uh an analysis on what is does my multiple look like right now based on the last few months sales so I would exclude all this so I would just really look at the last six months maybe the last month and then do a calculation based on that I would make an analysis whether or not this is really a seasonal product and then really ask myself could I go back up to the ninety thousand dollars in gross revenue based on the products that they currently have and the competitors in this space all right there you have it if you are interested in another video where I explain how I bought a company for less than 500 check out this video right here subscribe if you want to learn more about how to be financially independent and get passive income or if you just want to learn how to analyze companies that you might want to buy let me know what your thoughts were in the comments peace out

Channel: Moe Lueker

Views: 3,464

Keywords: empire flippers, empire flippers review, empire flippers vs flippa, empire flippers testimonial, empire flippers podcast, empire flippers experience, is empire flippers legit, empire flippers scam, empire flippers amazon fba, amazon fba empire flippers, empire flippers review reddit, buying an amazon fba business on empire flippers, empire flipper, empire flippers website, buy from empire flippers, empire flippers interview, buying with empire flippers

Id: 5jeJbYXeq8Q

Length: 14min 9sec (849 seconds)

Published: Wed Sep 28 2022