Income Store, Legit? NO, A SCAM AS WE PREDICTED.

[Ecom man]

Did you mean "or" build one? Are you saying that you got 2 websites for $100k?

When you sell the website is the profit split 50/50 also?

If you were to listed your site(s) on the market now, would you be able to list them both for a sum of $100k?

If they bought a site for you, you should be able to list it for $100k the next day.
If they built a site for you, how long until the website is worth $100k?

I'm willing to bet that the reason they say also build one is to keep the value of your investment ambiguous so that you can't clearly define the value of the site that they bought. If I buy and build you a site, I can say that I bought you a site worth $25k and will build you a site worth $75k from scratch.

No I meant and. They buy a site for 100k (yes that’s how much they spend on buying the site) Then they build one from scratch as well. The one they build is in the same vertical as the one bought so that way they can send traffic to each other (for example if the bought site is a wine site the built site might be on vineyards)

Both sites you 100% own and can sell whenever you choose. Yes you could turn and sell the site they bought immediately and recoup your 100k. The built site is essentially worthless until it actually has income/visitors.

On the sale of the site you split the proceeds 50/50 over the original buy price. So if my site is worth 200k when I go to sell I get 150k (original 100+50 profit) and they get 50k of the sale price.

 

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[ned.ryerson]

Here is a TLDR;

Every time I read 'Guaranteed Returns' something in me turns on the CAUTION siren and tells me to stop reading. Having reviewed the site from an investor point-of-view, it looks like they are really trying to appeal to the new wave of take action, passive income, generate wealth audience the internet has produced. If people don’t know the answer to these questions they should be nowhere near your services or your website. You shouldn’t want visitors who don’t know the answers to these questions on your site, they should not be potential customers. If I’m a partner of a private equity firm and I stumble across this site I’m instantly thinking ‘this site reads like a scam’. I almost threw up when I clicked on the $0-$100k products page. A final thought, this company claims to be able to create and market a great revenue generating website. So why is theirs so sh*t?

 

[biophase]

No I meant and. They buy a site for 100k (yes that’s how much they spend on buying the site) Then they build one from scratch as well. The one they build is in the same vertical as the one bought so that way they can send traffic to each other (for example if the bought site is a wine site the built site might be on vineyards)

Both sites you 100% own and can sell whenever you choose. Yes you could turn and sell the site they bought immediately and recoup your 100k. The built site is essentially worthless until it actually has income/visitors.

On the sale of the site you split the proceeds 50/50 over the original buy price. So if my site is worth 200k when I go to sell I get 150k (original 100+50 profit) and they get 50k of the sale price.

Ok, but shouldn't you be getting at least $3k a month total ($36k a year), else they overpaid for the site? It makes sense that they build a additional sites to drive traffic. That's what I'd do too. But that site that they build is part of the "traffic driving" which is part of their job like SEO and PPC would be. So it's part of their work to get the 50% of profits.

Is the website that they bought for you worth $100k in your opinion? What's it doing in sales per month?

I was looking at a couple ecom businesses in July priced around $100k, total cost would have been around $120k-$130k because you have to buy their inventory also. But those sites were making $40-$50k a year already. Just seems odd to me that you'd be making their minimum.

 

[MJ DeMarco]

total cost would have been around $120k-$130k because you have to buy their inventory also.

I don't think they're buying eCom product based sites, they're buying pure affiliate/ad-sense sites based on traffic. Highly dependent on Google serps. IOW, they're one Google algo shift from being out of business.

 

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[jlwilliams]

Run, Forest. Run.

 

[Fassina]

Here's an easy answer. Check how much your website is worth. Do the math OR ask somebody to value it.

I mean you don't need to manage a website yourself, you can hire people to do that. Specially when you have 100k to make it happen. Fiverr, VAs, actual employees, contractors. But hey if you bought it, good luck, have fun.

 

[ned.ryerson]

I think the big push back is not that he's looking for advice to buy it - it's that he's already bought it and now everybody's pooh-poohing on the investment idea.

 

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[garyfritz]

I'm sorry but this doesn't look great to me. Their example websites are not impressive and I don't believe that you own an asset worth $100k. If I had $100k, I could buy an ecommerce site that already makes $30k a year, assuming a 3x multiplier which is very high. Realistically, I'd buy a site making about $40k a year for $100k. That would net me $3,300 a month right away.

That sure makes a lot more sense to me. Buy an already-established and income-producing website, one that returns 40% instead of 15%. Then hire somebody to help you improve it and juice its returns, while also teaching you the techniques. End up with a much more valuable website AND a valuable skill.

 

[ApparentHorizon]

Not generally. Hedge funds (or private placements) don't base their IRR assumptions off an annuity model. In other words, they don't assume they'll be paying you dividends/distributions forever in order to achieve their targeted IRR. Instead, they assume that you (might) get dividends/distributions for some period of time, and then you'll receive principle plus return at the end of some period.

While the IRR *could* potentially be good in either scenario, the annuity model requires that the investment be successful into perpetuity, which for online stores is far from a given. In the hedge fund model, the investment must only be successful for some short period of time -- 3, 5, 7, 10 years or whatever. And, in some cases, the original investment is actually liquid to some degree.

Incomestore's faq page definitely doesn't build confidence in perpetuity payments. What they say in the how it works videos, and what I'd realistically expect are closer to hedge funds as you described. Just with an annuity twist.

It would be foolish not to sell the site in 2-3 years, as the investor.

Speaking of Madoff, I'd be weary of a possible pyramid scheme, if the SEO floor ever falls out. "It will only be until the rankings pick back up. So keep recruiting 'investors.'"

 

[biophase]

I think the big push back is not that he's looking for advice to buy it - it's that he's already bought it and now everybody's pooh-poohing on the investment idea.

I'm not poo pooing the idea. In fact, I think about it from the other side. If someone on the forum gave me $100k to go buy a website and I'd have to run it for 50% of profits, would I do it?

So I get a broker to find me a business that I buy for $100k. It should be putting out at a minimum $30k a year or I wouldn't be buying it.

Now, I run the day to day and give $15k to the owner, and keep the other $15k. However, I would have expenses to run it. Either VA's, my employee time, management, PPC, SEO. So maybe I spend $10k a year and end up with $5k a year? Now as a seasoned ecommerce person, I would not be doing all this work for $5k/year even if I didn't put up any of my own money.

I think a much better plan would be for me to purchase a website for $75k. Pocket the other $25k. Now this website should be making $25k a year, so me and the owner split $12,500. I can use my $10,000 and use to manage and grow the website. Maybe I make $2,500 a year now. But I've made $25k on the buy.

I'd love to hear from @Ecom man if the website that they purchased was listed on any business broker websites. I think this would really help the legitimacy of the website.

 

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[100k]

Haha... yeah, someone should invite those guys (income store) to defend themselves in this thread.

 

[Ecom man]

I'm not poo pooing the idea. In fact, I think about it from the other side. If someone on the forum gave me $100k to go buy a website and I'd have to run it for 50% of profits, would I do it?

So I get a broker to find me a business that I buy for $100k. It should be putting out at a minimum $30k a year or I wouldn't be buying it.

Now, I run the day to day and give $15k to the owner, and keep the other $15k. However, I would have expenses to run it. Either VA's, my employee time, management, PPC, SEO. So maybe I spend $10k a year and end up with $5k a year? Now as a seasoned ecommerce person, I would not be doing all this work for $5k/year even if I didn't put up any of my own money.

I think a much better plan would be for me to purchase a website for $75k. Pocket the other $25k. Now this website should be making $25k a year, so me and the owner split $12,500. I can use my $10,000 and use to manage and grow the website. Maybe I make $2,500 a year now. But I've made $25k on the buy.

I'd love to hear from @Ecom man if the website that they purchased was listed on any business broker websites. I think this would really help the legitimacy of the website.

Yes, the websites that they buy are mainly through FE international.

I have no problem with any saying anything about Income store. I don’t own or advertise it and don’t need or want anyone to sign up for sure. I’m not planning on buying any more until I see how it pans out in a couple of years anyway.

Of course it’s real easy to say XYZ will happen but long term who knows what will happen. As it is now I’m 1.25% a month which hopefully will increase soon as the websites gain momentum. If it works, great, if not I sell the site/sites and get what I can out of them.

 

[MJ DeMarco]

Yes, the websites that they buy are mainly through FE international.

Can you link to the websites you supposedly bought so they can be examined?

 

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[Traction]

I was looking at a couple ecom businesses in July priced around $100k,

Can you recommend a good broker or listings site that you use?
Im aware of FE / Flippa / Centurica

 

[biophase]

Can you recommend a good broker or listings site that you use?
Im aware of FE / Flippa / Centurica

Which one is FE?

 

[100k]

Which one is FE?

https://feinternational.com/buy-a-website/

Founded by a MOD (meathead) from Blackhatworld.

Here's another broker:

Listings

 

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[Ecom man]

Can you link to the websites you supposedly bought so they can be examined?

I would prefer not to.... try to keep personal info off of a public forum as much as possible.

 

[ApparentHorizon]

I would prefer not to.... try to keep personal info off of a public forum as much as possible.

Domain registrar privacy is only $10/yr

Why would they tie in your real identity if it's just an AdSense site?

 

[mtnman]

hehe, this is a funny thread.

Anything under $500k from FEI is usually shit long term. I mean look at some of the garbage Amazon sites they've had listed in their platform for the last two years... FFS.

 

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[biophase]

Can you recommend a good broker or listings site that you use?
Im aware of FE / Flippa / Centurica

That's so weird that I've never heard of FE or Centurical. But I think it's because I'm looking in ecom most of the time.

I generally stay away from Flippa.

Bizbuysell.com
theFBAbroker.com
empireflippers.com

 

[GuestUser4aMPs1]

 

[MJ DeMarco]

View attachment 22768

Rut Roh! The "15% guaranteed returns" won't like regulatory scrutiny.

 

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[100k]

** MODERATOR'S NOTE:
These posts have been extracted from another thread into its own thread and slightly modified for discussion.

Did a ton of study on it. Decided that I would rather make a guaranteed 15% a year @ Income Store with virtually unlimited upside than to make 16% a year with almost no long term upside.

If you have about 100k+ to invest I’ve got something that I did that’s “guaranteed” 15% a year as a minimum. (Guaranteed contractually but of course something could go wrong if SHTF) And no I’m not hawking it lol.

https://incomestore.com/

View attachment 22566

Care to give us an update?

 

[Ecom man]

Care to give us an update?

At the moment I’m really upset with them as they’ve been giving me the run around with some issues with my site/contract.

I’m far less “bullish” about Income Store than I was when I first posted this and honestly would tell anyone who is interested to not do anything until they decide to get their act together.

I have 2 other friends/family members who I’ve told to hold off on buying a site through them until they get some things figured out.

 

[MJ DeMarco]

At the moment I’m really upset with them as they’ve been giving me the run around with some issues with my site/contract.

This doesn't surprise me.

The first rule of Ponzi's (or enterprises where the math doesn't work) is to give clients the run around when the math doesn't start to work...

Not saying this is a scam or scheme, but as an investor/business owner, the math doesn't work for me.

 

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[Bearze34]

Anybody promising 15% is a liar, any site that spends more space asking for your phone number and making vague claims than telling you what it does is a scam, and anybody that gives this P.T. Barnum of snake oil a dime is an absolute idiot. Go to your local tavern buy a stock certificate in a diamond mine. You have a better chance of getting a return on your money.

 

[Bearze34]

What I said was "guaranteed". If anyone could guarantee you that why invest? Just snatch up your guaranteed 15% for life and cruise to riches. If you can invest a minimum if $100k why not invest a million? Any bank will give you that loan.

 

[OME]

hehe, this is a funny thread.

Anything under $500k from FEI is usually shit long term. I mean look at some of the garbage Amazon sites they've had listed in their platform for the last two years... FFS.

Agree. Would stay away from FEI as overpriced multiples sometimes based on 3 month averages.

 

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[NatalieC]

Ecom man - any update since April? I'm looking into investing, and my understanding is that they had a bunch of issues moving to ecommerce sites at the first of the year that should mostly be sorted by now. Is that your experience?

 

[Ecom man]

Yeah I think the transition was more complex than they expected/ realized.

I have a good site up and running currently through them and they are building the second site currently. I haven’t gotten more than the minimum yet which isn’t exactly what I was hoping for but it’s where it currently is at.

As of where it stands right now I wouldn’t put anymore money with them until I start actually getting more than the minimum. I like the change into e-commerce as that’s something that I think will be better long term imo but short term it has caused some issues with getting new sites up and building those sites at scale.