In this part 1, free subscribers get the first 45 minutes of the conversation; paying subscribers also get part 2 in their RSS feed. The second part typically elicits more insights as we get deeper into the conversation.
Part 1 Show Notes
Catching Up with Jaryd
These days, Jaryd is focused on BOB, or Buying Online Businesses. Through it, he guides people on doing good diligence, and he also helps them find and grow good website businesses. BOB offers a paid membership program where people who want to start buying online businesses can learn various aspects of the game through different course offerings, including buying online businesses, and growing them, even amidst the COVID-19 pandemic. The membership also includes access to a community where members can list, buy, and sell sites. These sites are usually in the 5- to 7-figure range.
Buying Online Businesses
Due Diligence Framework
Through BOB, members are guided on how to perform due diligence, and can even ask Jaryd for advice. They can easily ask Jaryd to review their due diligence by submitting to him a due diligence framework which he can review. From there, Jaryd can offer tips and also point out any red flags to watch out for before moving forward with the listing and making an offer.
The Inner Circle Mastermind
This is one of BOB’s programs where Jaryd has 1-on-1 coaching sessions with clients. This program involves Jaryd sharing and suggesting business strategies and tips on growing their businesses. The program only accepts 20 members to allow Jaryd to devote a good amount of time and focus to each member.
The community currently runs on a platform called 10xpro.io. It allows for a great membership portal, and pages to put up their courses. It is similar to Kajabi in that regard.
Jaryd’s audience for BOB have lots of different backgrounds, ranging from e-commerce to SaaS, and even content sites. Of these, content sites take up a big chunk of the membership, with 40%, with SaaS and e-commerce splitting the remaining 60%.
Meetups and Events
Though they are currently unavailable for physical meetups due to COVID restrictions around the world, Jaryd and BOB members usually like to meet up and hang out with one another, coupled with the opportunity to share what they’ve been doing and how their businesses have been faring and growing. It’s a great event for networking and learning, and for newbies, coming into this would give them a wealth of information and advice. They’d then be coming out full of confidence and inspiration to do more business. These days, however, they conduct “virtual campfires” every 2 months instead, but the level of fun and sharing of information is as great as ever, and being able to connect with like-minded people has been a really big takeaway from these events.
Around the World
Jaryd has been travelling and has been based in lots of different countries and cities over the years, including the U.S., Honduras, and his current location of Australia. He’s been able to make friends and network extensively because of this.
BOB’s Virtual Community
Level of Capital
Jaryd says that the minimum amount of capital to spend in order to buy a good online business is at $10,000. Anything lower than that would only allow you to buy a startup, which would require a lot of time, effort, and additional capital to get some returns. In fact, the usual price range you would see in the community is $50,000, with some going as high as a couple hundred thousand dollars. For these high-level deals, buyers usually have partners or investors to help fund the acquisitions. Debt financing is also another source of money and capital for these big deals.
Bringing in Capital and Investors
Lots of investors and capital partners come in and help members participate in high level deals. However, they do not partner with newcomers who are purchasing a site for the first time, as they’d rather much partner with more seasoned buyers.
The goal of the community is to help members run their online businesses, at only 3 to 8 hours a week. This is perfect for newbies in the online business game, and who usually have day jobs and are looking to earn more on the side initially by buying an online business. Later on, as the business grows, these people are then able to leave their day jobs and have their income stream from their business take over. However, this does not mean that they will be spending even more time on the business. On the contrary, they still devote the same amount of time for their businesses, and this gives them a whole lot more time to spend with their family and friends, and do the things they want to do, since they don’t have a 9-5 job anymore. At the end, the goal is to become their own boss, by having their own businesses.
Another end goal for the community is to create wealth. As their businesses grow, members are able to acquire even more businesses to increase their income stream. Jaryd also says that this allows them to invest in other types of assets, like property, which is considered as a more stable asset. This helps especially considering that the online space is a volatile space, which can be hit pretty hard by different factors.
Episode 22 Part 2
In part 2 of this conversation we discuss:
Whether buying domains rather than websites is a better path to build wealth
How to know when to flip a site in order to take money off the table
Reinvesting in your business vs investment diversification
Investing in other online business operators
Subscription businesses and why Richard may set up a coffee one
Part 2 is for paying subscribers, you can access by hitting the button below.
Enjoyed this episode or have any questions? You can leave a comment at the bottom of the web version of this post.
Avi Silverberg (Producer) & Richard Patey (Host)