Yesterday I announced that I sold 4 of my non-fun websites for $50,000. I intended to leave it at that, but after reading y’all’s comments and questions, I quickly realized that I omitted a bunch of stuff by accident – specifically with what we’ll be DOING with this extra money now! The best part! Haha…
Before we get to that part though, here are some more clarifications/answers/etc:
- I didn’t create, or “brand,” any of these sites I sold. They were all picked up purely for business reasons where I merely hired a staff, grew the revenue, and then pocketed whatever profit was leftover after all expenses were paid each month. It was boring, but it was MONEY.
- If I sold them all last year I would have made $75,000. Ouch. But such is the way things go with business and life, eh? I wasn’t in a position – or motivated – to offload them anyways. You never are when your raking in the money :)
- I still sold them between 2x-5x what I originally paid for. Not only banking a profit on the flip of them, but also earning all that money coming in every month I owned them as well. You know that saying to run with what you’re good at? This was one of those cases :)
- We did not sell Love Drop, and we never would. Who’d want to buy a site where you GIVE AWAY all your money anyways? Haha… we’ll be holding on to this life changing project forever in the event we start ‘er back up again one day :) This is our baby.
- We DID sell Take Our Stuff.com, however in a totally random and separate transaction. For a whopping $1,001, haha… Nate (my biz partner) and I lost interest after 6 months and started moving to both our new homes, so we scaled back from 4 giveaways/mo to 1 a month and then eventually to none. Where I suggested we just shut it down and say our goodbyes, but was later convinced to try out a website flipping site called Flippa and learn how it all works. So we listed TakeOurStuff there for 1 week with no minimum (it’s very much like eBay, but for websites!) and it closed 7 days later at a thousand bucks. Definitely not what we thought it was valued at, but well worth the experience and more than $0.00 had we just pulled the plug. If you were a member of the site – we thank you so much for participating :) We wish the new owner lots of luck, and hope he can grow it much bigger and *cooler* than we could!
If you’d like to ask me anything else, I’m happy to answer. I live for this stuff :) Just leave ’em in the comments below…
My friend Tim from The Mint Manual summarized this whole thing the best:
Love that you actually made your priority a PRIORITY – i.e. you wanted to beef up your cash stores and that’s what you did, while still maintaining income from the properties sold. Love the move because it a) checks off the “get more cash” box, b) keeps money rolling in post-sale, c) allows you to focus on the other sites, which will ideally make even more money than the 50% future (uncertain) profits you cashed in. Great move.
Now what will we be USING this money for??
I’ll tell you :) Because you always have to have a plan for your money, right?!
- $10,000 will be set aside for future business endeavors – either passively, or for creation
- $15,000 will go directly to maxing out our SEP IRA at the end of the tax year. This will save us thousands in tax money, as well as continue pushing us on track to growing our nest egg.
- And $25,000 will be tucked into our savings account bed :) Giving us an almost $50,000 total cushion in there now. Allowing us to breathe again…
You know what I *won’t* be doing with this new cash? Putting it into our mortgages :) Right now I need to be able to touch as much money as I can in the unlikely event of an emergency, so there will be no debt paying in progress this time around… That’s the one major downfall to paying off stuff – you can’t get your money back :(
There is, however, a *slight* chance I take that $10k business money and drop it into maxing out both our ROTH IRAs, but we’ve got a few months before we need to make that decision… Right now I’m liking having some personal backing in that department – especially when the money came from other businesses anyways – it’s “like-minded” money! Haha… I know most of you consider every dollar the same, but for us emotional people it’s not ;)
So there you have it…. I still have all my favorite babies online with no intentions of selling, but I’ve sweeped away the sub-pars and have a bigger cushion to sit on looking forward. And again, if anyone’s interested in learning more about this stuff, or wants my help with your own business/blog, I’m happy to help :) If it’s a simple question, just leave it in the comments below, and if it’s a more detailed one, shoot me an email instead.
Tomorrow we’ll be back to “normal” personal finance stuff again… Just had to put on my business hat again while the iron was hot ;) Hope y’all have a great day!
Photo cred: zizzybaloobah
Jay loves talking about money, collecting coins, blasting hip-hop, and hanging out with his three beautiful boys. You can check out all of his online projects at jmoney.biz. Thanks for reading the blog!