Assertion certainty 4/5 debate potential 1/5

Empire Flippers pivoted to brokering websites after building them became less profitable

Justin Cooke · EP 339: The $10M Website Seller Empire Flippers · Jun 28, 2016 · at 9:59

Justin Cooke, co-founder of Empire Flippers, explains the catalyst for transitioning from creating and selling their own niche websites to operating an intermediary marketplace.

0:00 / 0:08exact quote · 8.2s
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“Over time, we had more demand than we were able to supply. Our process for building sites wasn't as profitable as it was when we started, and that's when we started brokering deals.”

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More from Justin Cooke

Insight
Empire Flippers charges listing fees to filter out unserious sellers, not for revenue
“To be honest with you though, Nathan, we make very little money on that. That's more of a filter to keep the kind of like, you know, the people are looking just to get a valuation or they're not terribly serious about listing. They're just kind of, you know, t…”
Justin Cooke Jun 28, 2016 ▶ 4:07 EP 339: The $10M Website Seller Empire Flippers
Assertion Supported
Online businesses typically sell for 24x to 36x their monthly net profit
“It all comes down to the multiple It's a multiple of net monthly profit. And sometimes it's annual, sometimes monthly, depending on which broker you talk to with us, it's monthly. And you're generally going to get somewhere between 24 X and 36 X for your busin…”
Justin Cooke Jun 28, 2016 ▶ 13:55 EP 339: The $10M Website Seller Empire Flippers
Prediction Not checkable as stated
Cooke predicts website portfolio investment funds will become a massive asset class
“I think there's a huge, there's going to be a huge industry there. I just think it's really, really early. So we're starting to see other people do that. So it's not just us. And I think that's going to be really big.”
Justin Cooke Jun 28, 2016 ▶ 15:04 EP 339: The $10M Website Seller Empire Flippers
Assertion Not publicly verifiable
Empire Flippers closed its largest deal ever for a $550k Amazon affiliate site
“I can tell you the biggest sale we've had. We just sold a deal last month for 550,000 dollars was a content play, mostly Amazon affiliate marketing, makes the most of the money through the Amazon associates program.”
Justin Cooke Jun 28, 2016 ▶ 2:07 EP 339: The $10M Website Seller Empire Flippers
Disclosure
Empire Flippers takes a flat 15% brokerage fee on every listed business
“We charged a 15% fee on every business we list and sell.”
Justin Cooke Jun 28, 2016 ▶ 5:15 EP 339: The $10M Website Seller Empire Flippers
Assertion Supported
Empire Flippers generated ~$700k revenue on $4.56M in transaction volume in 2015
“So we did 4.56 million in sales and that was on 176 deals. So in terms of money we took in for empire flippers is about 700,000 dollars.”
Justin Cooke Jun 28, 2016 ▶ 6:48 EP 339: The $10M Website Seller Empire Flippers
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