The Entrepreneur Forum | Financial Freedom | Starting a Business | Motivation | Money | Success

Welcome to the only entrepreneur forum dedicated to building life-changing wealth.

Build a Fastlane business. Earn real financial freedom. Join free.

Join over 80,000 entrepreneurs who have rejected the paradigm of mediocrity and said "NO!" to underpaid jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence.

Free registration at the forum removes this block.

$100k in 6 months

TFF123

New Contributor
User Power
Value/Post Ratio
58%
Dec 8, 2019
12
7
Ok, so it sounds like a wild dream, especially when it is only my second post on the forum. Regardless, here begins my journey to creating $100k in value by 12 June 2020.

How?

Through building / acquiring a small group of income producing websites. I currently have one new website ($30 per month revenue at present) and have just purchased a second website. I expect to take delivery later this week. Overall, between the purchase prices of the websites and my retained earnings, my portfolio is currently sitting at $1400. That means I need to grow it to have a value of $101,400 by 12 June 2020.

The rules:
  • No more cash injection
  • Using income earned to purchase additional websites is allowed
  • On 12 June, websites will be valued at 30X their earnings over the last 30 days. Assuming the websites are of sufficient quality and have longevity, this is a good (but conservative) estimate
Assuming a cash balance of 0 at 12 June, I will therefore need to have websites producing $3380 per month.

I am leaving it open to change, but my preference is quality content websites, with a high percentage of organic traffic, that are monetised by Amazon Affiliates and perhaps Google Adsense.

Time to start grafting...
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

MJ DeMarco

I followed the science; all I found was money.
Staff member
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
445%
Jul 23, 2007
38,084
169,532
Utah
So your plan is to buy websites and just sit back and do nothing?

Because I see no strategy that involves growing those websites.

Your approach doesn't strike me as a business approach, but a gambling approach.
 

TFF123

New Contributor
User Power
Value/Post Ratio
58%
Dec 8, 2019
12
7
So your plan is to buy websites and just sit back and do nothing?

Because I see no strategy that involves growing those websites.

Your approach doesn't strike me as a business approach, but a gambling approach.
@MJ DeMarco Absolutely not.

The first website is still in its infancy and requires a lot of content to be produced (which I will be doing myself).

The second website, which I am in the process of taking delivery of, is in need of a number of SEO related upgrades. Backlink building, internal linking and improving the scope of the content. Again something that I will be doing myself.

The goal I laid out originally is truely impossible if I was to take the approach of just sitting back. It requires a LOT of value add...
 

TFF123

New Contributor
User Power
Value/Post Ratio
58%
Dec 8, 2019
12
7
So its a little over 2 months in. Status check:

Website 1
Flat, with 500 uniques a day, revenue relatively immaterial. On autopilot.

Website 2
Starting to gain traction. This has been my main focus and will continue to be so for the next month or so. Tough to value at present, but if you extrapolate profits for the first two months forward (assuming no growth) and use a 30x valuation you get to about $5k in value. A long way shy of $100k, but I can genuinely see a strong path forward

Website 3
A new website that I've just finished building the bare bones for. Ultimately this will be my fastlane website. It ticks all the boxes, fulfills a genuine need, 0 competitors, growing niche, profitable niche, natural automation, ability to diversify income streams, no reliance on anyone else (read: Google, Amazon, other parties). Whats more, it is in an area that I know a lot about (and enjoy).

I guess with young websites it is going to be difficult to give them an exact value, but I've a belief that the $100k in value is still in reach. In fact I'd like to have it completed a little early.

Back to work...

TFF
 

kkoasdfawfqwe2

Bronze Contributor
Read Fastlane!
Speedway Pass
User Power
Value/Post Ratio
256%
Feb 17, 2017
140
359
Europe
Sorry, but I don't quite understand your valuation model.

A business is worth what someone is willing to purchase it for, and I don't represent everyone, but I would never pay 30x multiplier on 30 DAYS earnings. It makes no sense to me?

Oh okay, so you sell sun lotion on your website, and your sales are exploding the first summer month, so now I have to pay 30x your earnings for June while in December your earnings are non existent.

Can you elaborate how you came to this valuation model? I am not into selling/purchasing websites so I have very little experience with it, but it seems like a weird way to value any kind of business.

Interested in your input on this.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

TFF123

New Contributor
User Power
Value/Post Ratio
58%
Dec 8, 2019
12
7
Sorry, but I don't quite understand your valuation model.

A business is worth what someone is willing to purchase it for, and I don't represent everyone, but I would never pay 30x multiplier on 30 DAYS earnings. It makes no sense to me?

Oh okay, so you sell sun lotion on your website, and your sales are exploding the first summer month, so now I have to pay 30x your earnings for June while in December your earnings are non existent.

Can you elaborate how you came to this valuation model? I am not into selling/purchasing websites so I have very little experience with it, but it seems like a weird way to value any kind of business.

Interested in your input on this.

So, long story short, you're completely correct.

A business is only worth as much as someone is (or isn't) willing to pay for it.

And extrapolating earnings to arrive at a valuation is useless from a strict valuation perspective.

Having said that:

1. Looking at actually sales of established versions of the same business, 30x multiple has been a good guideline (if a little conservative)
2. I find that focusing on the long term valuation prospects to be useful because it forces you to consider every aspect of the business. Rather than thinking about a small efficiency change as leading to an immaterial $10 extra this month, think about the bigger picture - will this one change help me to make a little extra every month going forward? Thinking in terms of the 30x valuation (upon maturity) helps to frame what is worth doing and what is not - and what to prioritize.

Ultimately it is just mental bookkeeping, but I find it helps to put things into perspective and keep me moving forward at a faster pace than I may otherwise do.

Does that make sense?
 

MattR82

Gold Contributor
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
178%
Oct 4, 2015
1,394
2,480
41
Brisbane
30 x ??? And 5k valuation? So it's making 170 a year? What?????
 

MattR82

Gold Contributor
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
178%
Oct 4, 2015
1,394
2,480
41
Brisbane
A month not a year
Ok maybe I was confused. 30 x sounds really high though. I may be wrong but I haven't heard that before, thought it was between 3 x and 5x
 

MattR82

Gold Contributor
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
178%
Oct 4, 2015
1,394
2,480
41
Brisbane
Some people use months some use years. 30x months / 2.5x years.

Same difference.
Ah ok haha, I've never heard months before so that sounded pretty crazy.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post new topic

Guest post submissions offered HERE.

Latest Posts

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Top