Did you know that Amazon Businesses are selling for insane prices, at insane speeds?
In fact, Forbes has called BUYING Amazon Businesses “The Latest E-Commerce Gold Mine”.
And if you stay till the end of this letter I’m going to outline how you could hypothetically spend $13k a month FOREVER and never run out of money. So read on.
Heyday is one of DOZENS of companies that are approaching Unicorn status ($1 Billion Dollar Valuation or Greater) simply by PURCHASING Amazon FBA companies that already exist.
Naturally, this allows for massive opportunities downstream, to the people who actually OWN the Amazon FBA Businesses.
Now, I know, as the #1 educator of Amazon FBA business owners in the World, I’m a little biased.
I’ve seen with my own eyes the benefits of owning one of these “Gold Mines” when everyone is mining for gold.
I’ve seen exits, I’ve seen ridiculous offers get turned down because of bidding wars, I’ve seen it all.
So, with this letter, I’d like to share something that I’m not sure many people have access to.
This is taken directly from one of those “Gold Mining” companies (I’m not going to name them because I’m not sure if I should be sharing these haha).
This is basically what these giant companies, with massive amounts of funding, are LOOKING FOR when they are searching for Amazon Companies to buy.
Important things to remember….
They have raised BILLIONS of dollars under the premise that they will buy Amazon companies. Thus, they can’t buy other things with it. Thus, that naturally creates more competition for Amazon companies and drives their prices up.
All of my edits are in BOLD below (to explain what is happening).
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Amazon Seller Criteria
The Company expects that the following Criteria shall evolve, expand and change. Consequently, the Company may amend the Criteria applied by Finder by amending in writing the Criteria set forth in this Amazon Seller Criteria. Initially, the Company criteria shall be:
· Earnings: Earnings or EBITDA of $0.25MM - $25.0MM on a TTM basis
This means you can sell your business even if you only have profits of $250k per year.
That may seem like a lot, but to have a seamless exit like this, that is one of the lowest numbers possible.
o Annual revenues of $1.0MM - $100MM if earnings metrics are not available.
1M in revenue is not ridiculous, even with less than 10 products on the market. We’ve coached students who are doing nearly 500k/yr on ONE product.
· Review Moat: Critical
This just means that you have the most reviews for your category, something that naturally happens as you scale and dominate your chosen Niche.
· Amazon Revenues: 80%+ of the company revenues from Amazon;
Isn’t this awesome? Remember when everyone talked about “Diversifying?” in this case, diversifying HURTS you.
· Market Place Criteria: Flexible, but primarily US preferred.
Well that’s convenient, because it’s the easiest marketplace to sell on.
· Product Mix: We will look at companies that sell most products, however, we do not buy companies that sell products with the following criteria:
o Fashion risk (including handbags & dresses - but not baby pajamas, which we would buy);
o Beauty Product Companies, etc.;
o Shoes (too many SKUs);
o Food / Grocery; and
o Diet Pills.
All of our students have been cautioned against selling any of the above since day 1.
· Preferences (but not requirements):
o US revenues represent 65% + of all revenue – higher the better
o The lower the number of SKUs the better
WOW, less products is BETTER, it’s like they are trying to make this EASY!
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Pretty cool huh?
Before I let you go, I want to make this a lot cooler for you.
I’m not sure all of you understand exactly what an EXIT means….
Let’s take a hypothetical LOWEST POSSIBLE example.
Your company generates $250k in profit per year.
You do this for a couple years.
Save half of it, invest 1/4 of it. End up with about 400k in the bank if you do it right.
Then, you decide to sell your company.
At that point, the competition in this “Gold Mine” space has reached a fever pitch.
Today, in 2021, companies like Heyday are paying 3-5x earnings (profit).
By 2023, I expect that number to jump to 4-8x earnings.
Let’s say you get 6x.
250k times 6x = YOU GET A CHECK FOR $1.5 MILLION DOLLARS.
You’ve put in 2-3 years of work.
You’ve already quit your day job.
You have 400k+ in the bank.
And now you just added $1.5 Million to that.
You decide to retire.
You take your $1.9 Million and you transfer it to BlockFi.
BlockFi is paying out 8.6% APY on cash right now.
Look it up.
Pretty insane.
So, that $1.9 Million pays you $13,616 PER MONTH.
Yes, per month.
And the best part?
You can spend that $13,616…
Every single month..
Forever..
AND NEVER TOUCH THAT INITIAL $1.9 MILLION.
You can give it to your kids.
Or donate it to charity.
Or buy 1.9 million McDonald’s sweet teas on your death bed if you want.
No one can tell you what to do, or how to do it.
Now THAT is freedom.
Now THAT is worth sacrificing for.
Now THAT is worth waking up in the morning and getting to WORK for.
I’m done, but if this grabbed you today make sure you share it.
If you’re interested in selling on Amazon obviously you can always visit us at nineuniversity.com
Hope you’re having an amazing day..
Unless you aren’t subscribed to this letter! Then I hope it’s crap!
Haha, just kidding. But seriously, subscribe. It’s free.
Kale
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