Hit a 6-Figure Exit by Next Christmas

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Welcome to another issue of Passionate Income.

Today, we’ll be covering four business models you can start with very little money and exit by next Christmas.

In particular, ones that trade for 3x annual profits. Meaning, if you can get them to $2,775 per month, you got a six-figure exit in your future.

Let’s dive in.

If you follow the business space, odds are you’ve seen headlines about hundred million and billion-dollar exits.

Unfortunately, these type of articles lead people to believe you have to have a huge company to before you can sell it. In reality, however, four, five and six-figure exits happen every day.

You just don’t hear about them.

The good news is, selling a micro-business for 5-6 figures is much easier than you think. Especially if you choose one of these three business models.

#1 - Niche Blog Site ✍🏼

Sometimes referred to as AdSense of Affiliate sites, niche blog sites are micro-websites focused on a highly specific topic.

In particular, a micro-niche so small you’re not going to find big websites dominating the top rankings (meaning it’s possible for small micro-sites to rank at the top of Google).

The pros of this business model is that they cost very little money to set up and build. Mainly because it’s expected you’ll be writing the content (blog articles) yourself.

On top of that, unlike the models below, with niche sites you don’t have to spend money on ads (although you will have to buy backlinks).

The downside includes the fact this model is much harder than it used to be, and that - because of Google’s unofficial but very real Sandbox penalty - it will take 12+ months before a niche site starts making decent money.

Expenses: Website Hosting + WordPress Template + Backlinks + Canva

#2 - Drop Shipping 📦

Right up there with niche sites, drop shipping is one of the oldest and most proven micro-businesses that exists. On the one hand, some people say e-commerce has become so saturated it’s near impossible to succeed with this approach.

On the other, some of the highest earning (and most secretive) Internet Marketers are drop shippers who buy stuff from China and sell it at a profit in the US.

The pros of this model are that you can (once again) start for very little money, and that e-commerce is very scalable once you get something working.

The downside of this model is that, as soon as other people see you being successful (which, thanks to ad trackers and Amazon analysis tools like Helium, is very easy to see), they can very easily rip off your business model.

Further, drop shipping involves Cost of Goods Sold.

Meaning, a $100 order does not put $100 in your pocket. And because of that, to hit our target of $2,775 per month, odds are you’ll need to do ~$7,500 per month in sales.

Expenses: Website Hosting + Shopify Website + Advertising

#3 - Kindle Publishing Business 📚

If you’re a book fan like I am, odds are you’ve considered selling eBooks.

Known as self-publishing, Amazon allows independent authors to upload and sell their books for anywhere from a 30 - 70% royalty.

What I like about Amazon-based business models is that - as the #4 website in the US, and #10 globally - Amazon is the largest online marketplace in the world. Meaning,

The pros of Kindle publishing include tapping into Amazon’s ginormous buyer traffic, and the fact you create a book once and can earn from it for months and years on end (not fully passive but close to it).

The cons are that you’ll have to pay for and run ads if you want to make sales, startup costs are higher (given you have to pay for book covers, editing, etc.), and competition is fierce for the books that are easiest to create.

Expenses: Book Creation + Cover + Advertising

So which business model should you pick?

As usual, it depends.

According to Empire Flippers, all of the above sell for a 36-39x monthly profit multiple. So like I said earlier, if you can get any of the above to $2,775 per month in profit - and sustain it - you could “exit” your micro-business for 6-figures.

What matters is choosing the model that makes sense for your unique situation. In particular, your talents, risk tolerance, patience, etc.

Further, most buyers want to see consistent profit before they’ll pay those kind of multiples. Meaning, to exit by Christmas 2024, you would need to hit $2,775 monthly net profit by August 2024, then sustain (or increase) it over the coming months.

💡 Takeaway: While Forbes, Bloomberg and the Wall Street Journal cover high-flying founders who achieve billion-dollar exits, small fries like you and me can turn around digital micro-companies in just 12-18 months.

And when you run the math, it’s easy to see how a 36x multiple of monthly profit can easily result in you earning enough to buy a car or even a house. Making digital micro-companies one of the best options in existence for generating a large cash windfall without making risky investments.

I'll leave you with this quote…

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