Email cash machines (Part 2)

5 minutes after I sent [my last email](=), a long-time reader replied: Hey Jon, Great email, insightful as usual. One big aspect I think you overlooked though - the asset value increase. Adding an additional $900 per month increases the asset by $27k - $36k. Also, as an acquirer I would be willing to pay a higher multiple as the traffic source is diversified. Can't believe I forgot to include the asset valuation. I'm too often myopically focussed on monthly revenue. --------------------------------------------------------------- -PAID AD- ​ This is a potato. Now that it got your attention, let’s talk about you finally scaling your SEO efficiently! - Quality SEO content - 100% Done-For-You Keyword Research & SEO content plans - SurferSEO optimization - Done-For-You niche sites - Managed guest posts - …at 20% off for all FatStacksBlog subscribers ​ Not sure our services are right for you? ​[→Get a $27 test offer on WebAssetBuilders.com←]()​ …or use coupon code FATSTACKS at checkout Quality SEO content, keyword research and posting now start at only $28 per 1000 words! Check out our case studies, and see how our clients get their niche sites to $XX,XXX per month!​ ​ -END PAID AD- --------------------------------------------------------------- Does including the value of a web asset change the viability of the email model? It's interesting, isn't it? Let's take the second scenario from yesterday's email. The scenario that generates $225 per month from spending $2,500 to get 10,000 email subs. I considered that a borderline investment opportunity. But, if you include the asset value, as in how much it's worth if the site is listed for sale, that would be $225 x 36 months = $8,100. In theory, you spend $2,500 to create an asset worth $8,100. Wowsers! Seems too good to be true. Of course subs will unsubscribe over time so that needs to be considered. But with those kinds of theoretical margins, there's plenty of wiggle room. Could this be scaled into a website flipping business? Maybe but there are plenty of moving parts to get right. Just spitballin' here. You could buy 100,000 subs in month one. Drive 100K visits to your website every month for 6 months. Sell that site north of $100K. Rinse n' repeat. Are there any problems with this? There are problems, but that doesn't mean it's not a workable model. Problems include: 1. You need lots of content which costs money... or a couple of days with AI (game-changer for content-heavy models). If you're emailing every day to crank that traffic dial up, you need at least one or more new articles to send them to daily. 2. Need to find a buyer for this type of website. Are there buyers who will pay a good multiple based on email traffic? I suspect there are plenty. The reader who sent the email above suggested he prefers that a site have approx. 50% search traffic and 50% email; in other words, he likes to see some traffic diversification. Would you buy a site where most traffic is from email? 3. Lots of work: Have you ever put out a daily email? I have. It's time-consuming. 4. The biggest problem: Making the numbers work. It's easy yakking about scenarios but not so easy to actually making them work. If it were easy, we'd all be doing it. There are three key variables you need to execute well on such as: - Cost per subscriber - Click rate from email to website... especially maintaining it long term. - Ad revenue RPM from those All three variables work together. Let's say you want to do this with a plan to exit in 12 months for a monster payday. You will likely use the first three months testing. After that, if you get the numbers working, you pour on the money. You'll need at least 365 articles published so that you have somewhere to send email readers. You could produce the content over time; you don't need it all in month 1. They do need to be good or your readers will stop clicking. That's a tall order. The plus side is that if you get the numbers working after 2 or 3 months of testing and you have plenty of cash, you could scale up instantly. You could, in theory, assuming the niche is big enough, spend $1 million+ on subscribers in one month. I wouldn't do that but you could. That would be quite something; a real leap of faith the numbers will continue to work several months in. If it does work, the pay-off could be huge. Or, instead of focusing on one site, do this for multiple sites. Anyway, you get the point. It's an intriguing model, that's for sure. It's particularly intriguing if you have a good product to promote as an affiliate (or sell) to new subs right out of the gates to offset your spend. I'll wrap it up by specifying that this email and the previous is really directed to B2C niches. When it comes to B2B niches, email in the right hands is a cash machine without trying too hard. Jon Fatstacksblog.com ​ [Unsubscribe]( | [Update your profile]( | 2016 Hill Drive, North Vancouver, British Columbia V7H 2N5