💸 6 steps to 10x your investment in a Content Site within 3 years

6 steps to 10x your investment in a Content Site within 3 years

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Step 1: Acquire a Website

  • at a reasonable price, the industry average is around 25-40x monthly net profit
  • 3y+ history
  • stable growth
  • low volatility
  • no PBNs, no spammy links, no messy 301s, no AI content

Step 2: Use debt to leverage your equity

  •  if you acquire a website at a 3x multiple, that’s a 33% yearly return rate when flatlining
  • if you can use 50% debt from family&friends or investors at a 10% fixed interest rate, you’ll cut your invested capital in half, can repay the debt within 3 years and leverage your equity

Step 3: Grow the revenue & net profit of your content site

  • optimize your traffic, but think beyond standard SEO tactics that everyone is using to grow your business
  • create an audience
  • boost social media
  • start a newsletter
  • optimize your content
  • establish a sales routine

Step 4: Acquire more Websites within the vertical

  • leverage management synergies
  • cherry-pick your editors
  • expand your industry connections
  • exploit synergies in other areas like SEO, tech, advertising

Step 5: Become a company

  • an isolated asset without management, dedicated tech, teams in place, diversified traffic and revenue streams has none to low value for an investor. It’s an asset, not a company. No institutional investor would touch this.
  • fix this. Become a media company. Hire a team. Create dedicated tech. Be the thought leader in your vertical.
  • use the resources to expand your audience, and internationalize your content to geo-diversify
  • get to $1-3m+ in EBIT

Step 6: Exit the company at a 10x or more multiple

  • why the higher multiple? Because now, you’re a company. From a buyers’ perspective, the traffic and revenue streams are diversified and internationalized. Lots of room to grow. A team in place, that will run the business even if you step down as CEO or founder. This leaves the buyer with a heavily risk-reduced scenario, hence the higher multiple.

Or keep the company and grow it even further.
Maybe you’ll like to stay a solopreneur.
Or partner up with a competitor.
There is no right or wrong.
You do you.