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How To 5x The Value of Your Affiliate Website in a Year


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This presentation is from Affiliate Summit West 2017 (January 15-17, 2017 in Las Vegas, Nevada). Session description: Will use examples from various sites we have grown in value by 5x in a year with actionable advice to help people with websites of all sizes increase how much they could be sold for.

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How To 5x The Value of Your Affiliate Website in a Year

  1. 1. How To 5x The Value of Your Online Business Chuck Mullins Founder
  2. 2. What is The Value of Your Business? Whatever someone is willing to pay for it! In reality your business is worth 2-3.5x your annual net profit. This number can vary greatly depending on things like business model, size, age, growth, work load, capital requirements, etc.
  3. 3. How To Increase The Value of Your Online Business • Increase Profit • Get a higher multiple
  4. 4. How To Increase Profit • Ask for more money • Evaluate you current offers/affiliates • Titles and Descriptions Matter • Identify objections and address them • Increase site speed and add https
  5. 5. Ask For More Money Affiliate Contact your merchants and ask for a higher payout Merchants Price test your products and services
  6. 6. Evaluate Your Current Offers/Affiliates Affiliates Use tools like SpyFu and SEMrush to identify your competitors and see what offers they are promoting. Merchants Measure the value of each affiliate separately, and compensate them accordingly. Look at your Google Analytics, and play around with attribution models - specifically first and last in methods. If an affiliate is primarily sending clicks last in, measure their effect on conversion rates (impulse buyers, value shoppers, etc.). If an affiliate is primarily first in, leverage commission rules within your network to make sure they're compensated!
  7. 7. Titles and Descriptions Matter Use Google Search Console (Webmaster Tools) to identify underperforming rankings based on click- through rate. Keyword 1 - Ranking 1st - Click through rate 43% Keyword 2 - Ranking 1st - Click through rate 27% Keyword 3 - Ranking 1st - Click through rate 13% Why are the click through rates so different?
  8. 8. Identify Objections and Address Them People often won’t take the action we want because of a rational or even irrational objection. Identify Objections •Surveys •Polls •User Testing Overcome Objections •Trust Seals –,, •Testimonials – “I was afraid of side effects, but …” •Address objections head-on “We Value Privacy and Will Never Spam You”
  9. 9. Increase Site Speed and Add HTTPS • Switch to a fast and reliable webhost • Test your site with Google Page Speed Insights • Test your site with • Add caching to your website • Use a Content Deliver Network (CDN) • Buy and SSL and add site wide HTTPS
  10. 10. How Do You Get Someone To Pay More For Your Business?  Find a strategic buyer  Choose the right broker for your type and size of business  Remove single points of failure  Sell on Terms  Clean up your books and document everything  Time your Sale  Front load one-time expenses  Show a path for growth
  11. 11. How Do You Find A Strategic Buyers Affiliates: •Who are you promoting? •Who would be interested in seeing you no longer promote them? •Competitors who could leverage your audience and/or relationships
  12. 12. How Do You Find A Strategic Buyers Merchants: •Competitors •Complimentary businesses •Business that can leverage your audience and/or relationships
  13. 13. Choose The Right Broker • Brokers Specialize in different types of businesses and are able to allocate and leverage resources accordingly. This could be based on the business model, the value, or numerous other things. • Picking the wrong broker can have disastrous effects. When trying to purchase a site I had a broker tell me I was asking to many questions for this “small” $25k deal and that it wasn’t worth his time.
  14. 14. Remove Single Points of Failure Having a single point of failure is never a good thing. • You should diversify both your traffic sources and your income streams. • Create Standard Operating Procedures (SOP) • Remove yourself from the operations of the business as much as you can by automating what you can and outsourcing the rest
  15. 15. Sell On Terms To maximize the amount of money someone will be willing to pay you, you need to de-risk the sale as much as possible. This can be accomplished allowing the purchaser to buy on terms. •Hold Back •Seller Financing Warning! By de-risking the business for the buyer through terms, you are in effect absorbing the risk. Unlike many other assets, a new owner can completely destroy an online business if they don’t now what they are doing.
  16. 16. Clean Up Your Books and Document Everything • Have a clean detailed Profit & Loss (P&L) statement that matches your bank accounts, merchant accounts, and tax returns. • Keep a detailed list of work you have done on the site. This should include things like what was done, the page(s) it was done to, and the date. • Add annotations to your Google Analytics of the changes you make. This can help track down the causes of traffic fluctuations
  17. 17. Time Your Sale • If your business is growing at a significant rate, hold on to it as long as you can and sell it before the growth completely stops. • If your business is in decline and you don’t think you can turn it around, time is working against you. Sell is as quickly as you can. Each additional month of declining sales further reduces the value of your business.
  18. 18. Front Load One-time Expenses One-time expenses aren’t supposed to be counted against you, but the reality is, they are. Buyers generally value a company based on the trailing twelve months’ (TTM) P&L. The sooner you pay for things the sooner they fall off your TTM P&L. Try not to drag one-time expense across multiple months or they start looking like ongoing expenses.
  19. 19. Tools  (P) - - Due Diligence Services $149 to $549+  (F/P) -  (F/P) - &  (F/P) -  (F/P) -  (F/P) -  (F/P) -  (F/P) -  (F/P) - F = Free P = Paid
  20. 20. Tools  (F/P) -  (F/P) -  (F/P) -  (F/P) -  (F) -  (F) -  (F/P) -  (F/P) -  (F) -  (F) - State Business Websites - Example: F = Free P = Paid
  21. 21. Tools  (F) - Google Trends  (F) -  (F) -  (F/P) -  (F) -  (F/P) -  (F) -  (F) -  (F) -  (F) - / / / etc. F = Free P = Paid
  22. 22. Bonus Tool Slide • (P) - – Time Tracking Tool for out sourced labor • (P) - - Project Management • (F/P) - - Project Management • (F/P) - – WordPress Plugin to Manage Multiple Sites • (P) - - Cheap Stock Photos • (P) - - Trust Seals to Increase Conversion Rates • (P) - – Boost Traffic, Conversion, & Engagement • (P) - - Offers Amazing Discounts on Great Tools • (F/P) - - Lists Top Social Media Posts • (P) - - Inexpensive Quality Writers • (F/P) - - Monitor Site Uptime/Downtime • (P) - – Easily Create WordPress Landing Pages • (F) - Google Docs - Collaborative Document Editing • (P) - - "Camtasia" Screen Capture Videos & Tutorials • (P) - - Vanity 8XX Numbers, Auto Attendant, Mailboxes ... F = Free P = Paid
  23. 23. How To 5x The Value of Your Online Business Chuck Mullins Founder