Wellness Website Case Study (Investor-Operator Partnership) - Intro
Intro to a NEW case study between two Website Investors and an Operator. Can this deal structure be used to scale? Let's find out in this journey!
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This update has been archived and is available at The Website Flip.
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Hi Mushfiq,
I really enjoyed reading this post along with other topics you have covered since starting this series. This one really hit home as I've been trying to make this model work for some time now but keep running into stumbling blocks. I've never wanted to give up quite so much equity so that's comforting that you believe 50% is fair. I have also struggled with finding an operator that is willing to invest their time and energy for equity only and usually insist on a fixed floor expense of $500-$1K for a site in the size range as the one you discussed. How would you suggest finding an operator like the one you guys have found? Also, what happens if the operator underperforms? I'm curious how the contract you have with them reads, especially as it pertains to the equity component.
Thanks again for your insightful posts!
Mark
Hey Mushfiq!
I'm so grateful for these newsletter updates. I'm building a portfolio of sites also and it helps to see people of similar interests sharing their results and outcomes.
As for the rant you made about the industry not acknowledging other ancillary assets like an email list, social media accounts, digital products is interesting to me. Because in a brick and mortar business. There are assets owned by the business ( i.e special equipment, inventory, trademarks, etc ) that help in boosting the valuation of the business.
I would think in the online world having a responsive email list, social media following, digital products, etc would do the same for online websites. Hopefully these things get reconsidered.
Lastly, how did you find a site like this? I'm sure it wasn't on any marketplace with a monthly income in that range.
Thanks!