Richard

talked to a seller last week store doing $15k/month profit, wanted $500k for it “everyone keeps telling me it’s worth this much” yeah, because inflated valuations get you excited but excited sellers and actual buyers are two different things here’s what nobody tells you about ecom valuations: you can list your store for whatever number you want $500k? sure $1M? why not but listing price and selling price are two completely different things your store sits there for 6 months with zero offers then you drop the price 40% out of desperation the real problem is sellers compare ecom stores to the wrong things “physical businesses sell for 3-5x profit” yeah, a restaurant with a lease, equipment, and a location “SaaS companies get 10x revenue” yeah, with recurring revenue, low churn, and actual moats your dropshipping store that could get banned tomorrow is not the same here’s the actual range right now: low end: 1-2 months of profit high end: 3-4x annual profit and that high end? you need to check EVERY box most stores sit at 2-2.5x annual profit if they’re lucky what actually gets you to 3-4x: TIME - you need 18+ months of consistent history, buyers want to see you survived multiple seasons and didn’t just catch one viral moment CLEAN RECORD - one angry customer can kill your deal, buyers dig through everything during due diligence, BBB complaints, social media comments, customer service emails, reviews, any complaint will be found and used against you TRADEMARK - if you don’t own your brand name legally, you’re selling a house built on rented land ORIGINAL MEDIA - if you’re running ads with stolen content or fake “as seen in Forbes” badges, you’re a lawsuit waiting to happen, buyers see that and run DIVERSIFIED TRAFFIC - if 100% of your sales come from Meta you’re one ban away from zero, buyers hate that, Google is solid and consistent, add Snapchat, TikTok, Pinterest when you can, and actually work your email and SMS to increase LTV, multi-channel stores sell for way more NOT A PUMP AND DUMP - if you’re sourcing from Kalodata and riding a trend, everyone knows it, you’ll get offered 1x if you’re lucky REAL SUPPORT - if you’re running subscriptions without an actual support team, refunds and chargebacks will kill the next owner because here’s what buyers under $150k actually care about: 1. Can I sustain or grow this compared to where it’s at now? if your entire strategy is “I got lucky with this one ad” they can’t replicate that 1. How long until I make my money back? if they’re paying $100k and profit is $3k/month, that’s 33 months to break even, way too long, they want 12-18 months max 1. What are the risks? Shopify payments shutting down, BBB complaints piling up, FTC coming after claims, FDA issues, ad accounts getting banned if any of these are likely, your valuation drops fast above $150k the questions change: buyers want to know about durability and expansion can this run for 3-5 years without them? is there room to scale into retail or new channels? does the brand have actual equity or is it just revenue? so when you hear a valuation that makes you smile ask yourself: would YOU pay that much for a business with these risks? if the answer is no, neither will anyone else the valuation gap right now is brutal sellers think: “I built this, it’s worth a fortune” buyers think: “cool, but what am I actually buying and what can go wrong” and that’s why most stores never sell not because they aren’t profitable but because the seller’s ego got in the way of the math

everyone's trying to build stores from scratch like an idiot I just bought one doing $12k/month for $85k previous owner burned out after 14 months I changed 3 things and it's doing $31k/month now here's what most buyers get wrong: they look for "perfect" stores pristine metrics, zero issues, already optimized those sell for 4x multiples to private equity firms I look for stores with obvious fixable problems owner bottlenecks if the seller is manually running all the ads because they don't trust anyone that's easy money hire a media buyer for $3k/month and remove yourself completely garbage email marketing most stores have 20k+ emails just sitting there they send one blast a month with 10% off I plug in proper flows and segmentation and pull an extra $8k-15k/month immediately trash AOV single product stores leaving money on the table add bundles, upsells, and post purchase offers AOV goes from $47 to $89 without touching traffic bad creative rotation they've been running the same 4 ads for 6 months wondering why performance dropped refresh creative every 3-4 weeks and scale goes back up no retention play acting like every customer only buys once SMS, subscriptions, loyalty programs turns a 1.2 LTV into 2.8 LTV the best acquisitions aren't the cleanest stores they're the ones where you can see exactly what's broken and how to fix it bought 4 stores in the last 11 months using this flipped 2 already for 2.4x what I paid still running the other 2 stop trying to build from zero when you can buy cash

@danikennyi Could I sell my brand? rn doing around $100k/month 8 months old organic and paid dropshipped supplement

This DTC brand made $500,000+ without selling a product He sold his 6 month old store 98% of store owners miss out on 6/7 figures 100s of qualified buyers come to me every month looking to buy brands If you want to exit Comment “SELL” and I’ll give you a full valuation (must be following)

@tobiadonadon_ 8

this is just 1 of the 8 best prompts to use on chatgpt they’ve helped me scale to $120K/month with AI automations no bs no time wasted no useless advices I’ve made a notion file containing all of the 8 prompts rt + comment “8” and I’ll send it over (must follow)

@danikennyi exit

$10M+ worth of stores will be sold this Q4 Most owners don’t even know their store is an asset they can cash out on RT+Comment “EXIT” and I’ll show you how to do it before the year ends (must be following)

@danikennyi SELL

another store just sold for $120,000 $8.2K/month in profit No team No office Just clean systems and 26 days from listing to wire RT+Comment “SELL” and get the breakdown (must be following)

@danikennyi saas

Another SaaS flipped for a clean exit… $117K+ MRR $101K in gross volume this month alone Built lean. Scaled fast. Sold faster. Most devs let theirs collect dust. I cashed out. RT + Comment “SAAS” and I’ll show you how I did it (must be following)

One of my buddies wanted to sell his agency He was running an SMMA for dentists Making around $30K/month profit We sold it for $700K in 8 days Now he’s going all in on Bitcoin and building another agency Retweet + comment “how” and I’ll send you a full video (must follow for dm)

Last few days in Italy This place is just paradise I’ll miss it

A store making $100K/month is good But if you’re in an unstable niche I would consider selling You could easily make $400/500K with a good exit RT + comment “unstable” and I’ll send you the info (must follow to get dm)

Back when I tried to sell my first ecom store it was a MESS It took me like 4 months to get it sorted That’s why I co-created Wasabi, a website where you can sell your ecom store, agency, and Saas We give you a free valuation of your business while also trying to maximize what you can earn out of it

Sold my second store at $230K - It took less than 10 days - Didn’t expect to sell it for more than $210K - Process was super smooth and clear RT + comment “sell” and I’ll show you how (must follow to get dm)

Just passed $351K with our third store We only got into ecom last year This year, we’ll likely finish at $2–3M across all three One specific video shifted everything RT + comment “2” and I’ll send it your way (must be following to get the DM)

I’ve had so many new ideas since coming to Italy This is a place where you can just reset your brain There is a different energy compared to the States I’m might come live here in the future