If you had a 6 figure niche website, what scaling strategies would you implement?
Difficult question, isn’t it?
Jaryd Krause had an amazing opportunity to speak with Devin who is a Buying Online Businesses Community graduate who decided to do some 1 on 1 coaching with Jaryd to buy his first website. He used to be a professional sports player and coach and is now investing into cash flowing assets and scaling them.
Jaryd and Devin discussed why he wanted to buy an online business, what he did before buying a business, what he found hard about buying a site and what he got most out of the journey.
They also talked about why both of them disqualified so many bad businesses and what those looked like. What business he bought and why it’s a great business we should all strive for, how he built a great relationship with the seller and how that’s helped a lot with his goals to build a portfolio of sites.
If you dream to own a portfolio of sites too, then catch this podcast episode now!
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Episode Highlights03:12 Motivation behind making income online
04:12 How did you buy a business?
06:53 Before online business what did you do
08:51 How did your life change from buying a business?
12:09 Things Devin learned on the journey to buy a website business
14:52 Did you know exactly what you wanted?
16:10 How long did it take before purchasing?
17:19 What did you learning during the buying process & due diligence
25:16 What does a good business look like
29:58 Building a relationship with the seller and why that’s key
31:45 Devin’s future goals for the business and his investing career
Devin is a Buying Online Businesses Community member who decided to do some 1 on 1 coaching with me to buy his first website. He used to be a professional sports player and coach and is now investing into cash flowing assets and scaling them.
➥ Buying Online Businesses Website (https://buyingonlinebusinesses.com)
➥ Download the Due Diligence Framework (https://buyingonlinebusinesses.com/freeresources/)
➥ Visit Niche Website Builders and get EXCLUSIVE OFFERS as a BOB listener (https://www.nichewebsite.builders/bob/)
How can buying an online business improve your lifestyle?
Jaryd chats a lot about the process of buying an online business and has been totally with Devin through the journey of buying his first ever website. But is curious as to why Devin wants to earn an income from buying an online business, for example. What is his motivation?
Devin says, after everything he’s tried, it made the most sense to buy a website business because he was looking for flexibility in his lifestyle. So basically being able to work and move around how he wanted to. As a family man he wants to be able to be present daily and have that opportunity. So, when he found out about the possibility of even making money online and owning a website, it intrigued him immediately.
Jaryd asked Devin how he found out that he can have a passive income in buying an online business. How was he able to go that route of entrepreneurial journey?
How COVID shifted his perspective to owning an online business?
Devin shares that he tried exploring the possibility of owning a business, brick and mortar and franchises. But when COVID shut everything down in 2020, it made him realize that he needs to look for other options. Then, one day, he had a chance to watch Jaryd’s videos on YouTube and he became interested. Two years ago, he was totally unaware of the process, he didn’t even think that people do actually buy an online business and earn money from it, so he stayed away from the idea.
Jaryd asked Devin if he were looking at buying an offline business, a franchise. And if it was pre COVID Or during COVID? If Devin can tell more about that.
Devin started out in late 2019 (pre-COVID) to look for buying a franchise business and it was moving along pretty well and was actually close to closing the deal. And then, things shut down in March of 2020. It just made the most sense to walk away from the deal. With so much uncertainty and limitations in running a brick and mortar business, Devin doubted if an offline business would thrive during those times.
Jarys also shared that he was able to sell an ecom business last March 2020 and felt lucky he sold it at the right time. Jaryd asked Devin what his main motivator in buying an online business was. What was he doing prior to the whole, let’s try and buy an online business?
Devin said that he worked in professional sports – local and international. He was involved in that for around 17 years, and his mindset really started changing. And this made him want to spend more time with his family and not devote so much time to his profession. As the kids got older, he really wanted to be present daily, so he wanted to have that option to be there or be wherever we wanted to be together. So that’s really what shifted his focus to find a good business and move away into something else, and possibly do things on his own terms. And will give him an opportunity to get back into professional sports on his own terms.
Jaryd agrees with his statement. He asked him what the limitations may be of working in that industry that he doesn’t want to have to subdue to in the future.
What are the limitations of working that pushed him to consider buying a site?
Devin says that people don’t realize how much professional athletes, their schedule, and their day to day is dictated. He is kind of someone who has devoted his time to that, on both sides, and they’ll be coaching and playing. He wanted to be in control of his day to day and not have somebody else to control that because sometimes it’s short notice when somebody wants you to be somewhere and what they want you to do, and sometimes there’s no regard for your schedule or what you got going on, personally.
Jaryd got curious and asked, how did his life change in terms of how he felt about life differently when he ended pro sports and started doing his own thing like, what was good or bad about it for him? Jaryd shared that he had the same experience where he went from, he needed to be at the job site at a certain time and got these responsibilities on the phone and off the phone. And holding that accountability and then shedding it was like a relief. Then Jaryd asked him, since he came from different industries, what did that do for him, even before he bought a business?
Devin answered that he had taken a year off from 2017 to 2018. When he made the decision to stop, and do his own thing, it really made him buckle down and focus on what he wanted. Because he always aspired to do things he wanted outside of sports, but he just didn’t have the time. There were moments where he would put things off, he would focus on it for a couple of weeks or a month or two, and then, something would come up, and he’d just put it on the back burner. But he knew that if he wanted to do this full time, he had to be away from sports in order to pursue what he really wanted to do, online and professionally. He felt good when he finally made a decision. He felt like a weight off his shoulders because it was something he always wanted to pursue.
Jaryd added that there’s a big difference between somebody ending one thing, and not having something to go on to, versus someone who has a career and wants to do bigger projects. Unfortunately, some people that have a career or a job, then they just end it because they’re done with it, they’ve got nothing to go on to it’s like it can be messy or hard for them. So, it’s good that you had that aspiration to move into something, whether it was going to be business or not. Jaryd mentioned that this is something important people need to understand. For instance, when you buy a business, “What are you going to spend your time doing when you do have downtime?” so they won’t feel non-productive and not feeling good about their life.
What can you learn from joining the BOB community?
Jaryd then asked Devin, what were some of the best things he learned through the BOB community?
Devin said that his journey is pretty interesting, from just watching videos, to joining the community. He didn’t feel like he was being sold to. He mentioned that Jaryd was able to present and focus on the possibilities rather than trying to sell a product. By joining the community, the most valuable thing for Devin is accountability. He was also motivated by seeing other people’s stories, their journey from purchasing businesses, the struggles and some of their wins. He also likes to engage in members’ conversations and be open to finding the right business for him.
Jaryd then asked Devin about the process of honing in, or finding the right business for himself. He asked, what did he do when came to buy a site? Did he know exactly what type of site he wanted? And did it change? And if so, why? And how did that evolve for him?
Devin replied that he didn’t really have an idea what he wanted when he first joined the community. However, he did know that he didn’t want to have dropshipping or e-commerce or anything like that. It just seemed like a lot of moving parts. After watching several videos, learning more about different types of businesses online, and running across different ways of doing things, it has allowed him to hone in and narrow in on what made the most sense for him. Devin didn’t want to have to rely on sales to generate income. So, finding a site that was focused on display ads, this made the most sense. He also added that he does want some affiliate sales on his site, but don’t want that to be the priority. So that’s what he was looking for and slowly navigated the process.
Jaryd asked Devin how long was his journey of joining the community to purchasing an online business?
Devin answered that it took him at least about five to six months.
What does managing an online business look like?
Jaryd congratulated Devin on his journey to being an online entrepreneur. Then asked if he is enjoying the process of actually managing the business.
Devin answered “Yes, definitely.” For him, he learned a lot in the process. He also realized that this kind of business moves fast so he has to be prepared to put in the work and find and make a decision pretty quickly.
Overall, his experience has been great – from finding what you want, seeing how it can grow, seeing your earnings coming in every day. Devin can’t deny that it feels good.
How to do a Due Diligence review for a site?
Jaryd mentioned that people have the wrong connotation and think that they can buy a business within five to six months without much effort. Of course , they’ve got to put in the work. Jaryd then added that the first thing that they should learn is how to do the due diligence. And then once they start to get good at due diligence, well, they’ve still got to submit a lot of due diligence for review.
Jaryd then asked Devin his experience of doing due diligence, submitting it for review and how many he submitted?
Devin confessed that due diligence was overwhelming for him when he first looked at it. At the early stage of the process he felt like he didn’t know what he’s doing. He submitted around seven or eight due diligence to Jaryd. There were also another five or six that he did on his own without submitting it. He also mentioned there were another seven or eight that he did, without reaching the point of talking to the seller.
Jaryd said that he doesn’t talk to a seller, unless he’s about 80% chance he’s going to buy it. Jaryd said that as a beginner, what Devin has done was good. Jaryd thinks it’s good that he went through a lot and he got to the point that he needed to speak to the seller. However, Jaryd added that when he goes through a lot more, chances are it will quickly allow him to see the trends and decide which is more suitable business for him.
Devin agreed. He said that early on, he was confused. He would look at the revenue and think that it has to be a good business because it is making money. And then, when Jaryd takes a look at it, he has a different view on it and he would explain why. Devin learned that it’s not good to focus on a website that has a single source of traffic/income because when that cuts off, you’ll get stuck.
Jaryd agreed and added that sometimes it’s not recoverable, depending on the site, which is scary. The biggest thing that Jaryd sees is when people are looking at a business that when he do due diligence reviews, he can be so transactional about it he forgets how much work people are putting into the business. Jaryd admits that he can be pretty brutal with people that first come to the community. He added that it would be tough being in the beginner phase of going through the due diligence as a newbie and that’s part of the process.
Devin appreciates that Jaryd is straight to the point. It helped Devin develop a different perspective when it comes to checking online businesses.
How being transactional can help you to be a better investor?
Jaryd replied that it’s good when his clients are identifying things and starting to learn the process of buying an online business. Jaryd wants to stay transactional about it. He thinks that repetitiveness by being transactional can really help people to disassociate with becoming emotional about it. He admitted that a lot of businesses got knocked back by the due diligence they did. And now, he’s teaching people to learn how to see it. The real goal here is to become a great investor.
Devin agrees to the statement and he revealed that when he missed out on the one business opportunity for that one website that he was looking at before, it didn’t bother him at all. Devin felt that they’re on a good space. The next one will be fine. It helped him to be prepared to move on quickly, be sharper and be more on top of things.
Jaryd replied that they had submitted some offers, and got knocked back. And they were like – well, or missed out!
How can you tell a good site from a bad one?
Jaryd then asked why Devin liked this business, and why they went for this business, so people can sort of start to see, what does a good business look like. On average, what was the income of the site?
Devin answered that the income of the site is under five figure range for a month.
The site really stood out to him because it is something that isn’t a niche impact – it has evergreen content. It had so many possibilities to build on. Devin felt like the content was really good, the article was ranking really well, for the domain ranking that it had. So, he felt like the possibilities were really there to build on, it had good display ad-revenue, and not so much affiliate. He can also add more to it that will surely bump up the revenue as well. Devin knew that content would really stick around so he chose this site.
Jaryd said that he’s thrilled with the site he bought, it’s such a good business, it really is. And the more that they look at it now, they’re like, it’s good. It’s so solid.
What’s the difference between owning a brick and mortar business to an online business?
Jaryd then asked Devin to tell about the hardest part of going through the process of doing due diligence. Where would he be with a franchise? And now that Devin knows about the online business space, Jaryd asked if he will still pursue the franchise business or go for this online business or build a portfolio? What does he think is the difference?
Devin said that with the franchise, he thinks he will encounter so many struggles like finding a worker. He also added that it could be a situation where he could be in the franchise actually having to work. That’s not something Devin is looking forward to.
How to build a good relationship for better business?
Devin revealed that his goal is to have a portfolio of different websites. Devin thinks that he’s in a good space, it got him what he wanted – to be present and have the flexibility. He feels like he’s heading in the right direction. He found a really good website and the previous owner has been really helpful, insightful and he put a lot of time into building something good. That’s always a plus, to have that relationship and he’s been great. Devin thinks that it prepared him moving forward, so when it’s time to find another one, he’ll be ready to go. He already has everything in place, knows what he wants to do, knows what he’s looking for, and is ready to get the ball rolling immediately. He feels like in the process of learning things. But, eventually he’ll be better at recognizing businesses and managing what I have.
Jaryd replied that the relationship he has built with the seller has been very valuable. Then asked how he went about that? Like how did he open up to building relationships with them through the due diligence? And how did Devin connect?
Devin answered that he really took the time to show his appreciation for his time for telling him in depth about his business, and just really tried to use that time to get to know him and his story, and explain to him. Devin felt like they made a good connection. Once they were in negotiation, he really offered to help, for an extended period of time, and it was something that he presented, so I feel from there that our relationship has just grown. He’s been really helpful through this process, from migration to when I was in control, and taking over everything.
Jaryd mentioned that it’s good advice for people that want to build a relationship, so you can make a good transaction, but just about actually wanting to connect and be a better human. Jaryd asked Devin what’s his end goal since he mentioned that he wants to buy another one. What does Devin’s portfolio look like? In 5 years or 10 years’ time, what are he hoping to achieve?
What is Devin’s goal for his business?
Devin then replied that hopefully he’s looking to buy, grow and hold the sites, He’s not really interested at least right now to try to build to sell. Devin wants to hold good websites – good quality sites that he can have for a long time. He hopes to acquire two or three sites in decent sizes. So even ones that have less traffic and less revenue, could possibly work as his second and third options for sites and a portfolio.
Jaryd congratulated Devin on buying your first business. He said that this one is definitely one for a long-term hold, if Devin wanted it to be. Jaryd thinks that it’s a really good foundational investment for his portfolio. And looking forward to seeing more from him in the future. He thanked Devin for coming on the show.
Devin appreciated it. He also thanked Jaryd for having him on the show and allowing him to share his journey with everybody.