Human Proof Designs is bootstrapped and was founded in 2013
Brian Brewer · HumanProofDesigns Hit $2m Revenue Selling Starter Sites to New Entrepreneurs · Oct 5, 2020 · at 18:25
Brian Brewer discusses the capitalization history and ownership transition of Human Proof Designs with host Nathan Latka.
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“No, this has all been bootstrapped. Now Dom Wells, a colleague of mine started the company in 2013, and then I acquired it from him.”
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More from Brian Brewer
New websites take six months to rank due to Google sandbox
“I mean, the problem with ready-made sites is Google has kind of a six month sandbox. So a site isn't going to rank and isn't going to grow and develop your revenue likely for the first six months.”
Low-revenue starter sites are priced by content replacement cost
“There's two ways to value a site. We can value it on the content. Which this site has very little revenue. So we have to base it off the content. Like how much would it cost to build this site today if you were to start from scratch?”
Income-generating starter sites sell for 30x to 40x monthly revenue
“For those sites that are earning at least a hundred dollars a month, Then we do, we switch over to a valuation model and look at what is the earnings, which most of these sites are going to sell between 30 and 40 times the monthly revenues.”
Human Proof Designs holds 50 to 60 sites in active inventory
“We've got, you know, at any time we may have 50 or 60 of these sites That are in our inventory that we're building and working and trying to sell to other customers.”
Human Proof Designs offers a one-year buyback guarantee on sites
“We do have a success guarantee. So if someone purchases a site from us, And they go through our training program. If in one year they aren't making the income they want to make on that site, or they're just got bored with it, or it wasn't for them, then we buy…”