Dan Faggella shares an insight regarding acquisition valuations for digital publishing and info-product companies.
Prediction Not checkable as stated
Faggella predicts AI will yield post-human intelligence within our lifetime
“Neuroscience and artificial intelligence and the stuff that I think within our lifetime, Nathan, will kind of tinker us beyond sentience and intelligence as we know it today into something kind of post-human and I don't think that's going to be in the next two…”
Assertion Not checkable as stated
Science of Skill reached nearly $2.5M in revenue using only Infusionsoft
“So I was with infusion soft with a martial arts gym to get it, you know, to a quarter million bucks. And then, you know, we got to shy of 10 times that size with the e-commerce business, all in infusion.”
Disclosure
Science of Skill paid $50 affiliate commissions on $100 customer lifetime values
“So our CLV for our membership programs were like a hundred and can, a 120 bucks. So we paid affiliates 50 or 60 bucks on a front end sale. But we wouldn't make that money back sometimes for three or four months.”
Disclosure
Faggella scaled Science of Skill via an unexpected, high-converting firearms audience
“For us, I've never owned a firearm in my life, but for some reason, the firearms market just, they bought our stuff. They bought our stuff hot. They bought our stuff heavy. They took the upsells. I can't tell you, but I was interested in getting an exit, so we…”
Insight
Direct ad outreach works best on sites that already run banner ads
“And then whatever responses we got back, it's kind of like you're already accepting money for advertising. I'm not the first guy to ask you. And I could probably actually pay you more than those guys are paying. Let's just chat. And that's actually quite an ea…”
Assertion Not checkable as stated
Faggella sold Science of Skill for $1M, a 3x net earnings multiple
“The multiple of net for us was like around three X in terms of bottom line. So I think, you know, 3:30 something in terms of net at the end of 2016 was multiplied by three and we brought ourselves to a little bit over a million dollars adding, well adding in i…”