Acquisitions Anonymous - #1 for business buying, selling and operating - How a Niche SEO Site Prints 95% Margins

Episode Date: September 23, 2025

In this episode, the hosts dig into a hyper-niche listing—DudeRanch.com, a $50K profit solo project that's the ultimate lifestyle business for someone who loves SEO, horses, and freedom.Busines...s Listing – https://x.com/searchbound/status/1957128051973656683Welcome to Acquisitions Anonymous – the #1 podcast for small business M&A. Every week, we break down businesses for sale and talk about buying, operating, and growing them.💰 Sponsored by:OpenPhone – A modern business phone for startups and teams. Get calling, texting, and collaboration all in one app. Sign up at https://www.openphone.comAcquisition Lab – Your fast-track to business ownership. Get hands-on support, world-class resources, and join a top-tier community of acquisition entrepreneurs. Schedule your free consultation at https://www.acquisitionlab.com and mention Acquisitions Anonymous!The hosts break down the unusual, yet captivating listing for DudeRanch.com, a directory-style marketplace charging $575 per year to feature ranches targeting high-end vacationers. With trailing 12-month profit of $50,000 and nearly zero operating cost, it’s a classic digital cash-flow project—built on SEO, brand equity, and a killer domain name.Key Highlights:- Asking Price: $225K for a business making $50K in profit (4.5x multiple)- Revenue Model: $575/year from ~100 ranches; 95%+ profit margin- Growth Levers: Raise rates, add concierge services, run sales process- SEO Moat: Owns duderanch.com, dominates Google for the niche- Risk Factors: AI impact on search traffic, single-operator dependenceSubscribe to weekly our Newsletter and get curated deals in your inboxAdvertise with us by clicking here Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations. For inquiries or suggestions, email us at contact@acquanon.com

Transcript
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Starting point is 00:00:00 Today's deal on Acquisitions Anonymous is super fun. It involves dude ranches and a mountain and Twitter and somebody with Mills and I know. So the cool thing about this deal is the seller, a guy named Peter from Twitter. He is basically live selling it on Twitter. So we got to see all the Q&A that people are asking as he's trying to market the deal there. So we dug into the deal after a little bit of chit-chat. I think you will enjoy it. Stick around and see if you agree with us on how we felt about the deal.
Starting point is 00:00:28 All right. Catch you next time. And here's the episode. We'll set acquisitions anonymous. Hello, another episode of Acquisitions Anonymous. We don't have 100% beers anymore. And thumbs downing on just the plus inventory line. So many founders and operators still use their personal number to talk to customers.
Starting point is 00:00:47 And sure, that works when you're just starting out, but eventually it starts costing you time and money. That's where open phone comes in. It's a modern business phone system that lives in an app. You get one number and your whole team can use it like a shared inbox for calls, text, voicemails, all in one place. Somebody reaches out to you, your ops lead can reply. Your co-founder can follow up. You don't have to be the bottleneck anymore. And if you miss a call, Open Phone's AI agent picks it up, answers questions, and even logs new leads for you.
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Starting point is 00:01:55 Mills. Wow. People just miss the best intro ever. Where are other? Yeah, so actually my, before I start complaining about our co-host, my wife and I have a 2008 Cadillac that is to hand me down from my deceased,
Starting point is 00:02:13 but would be 95-year-old grandmother. That's amazing. It has 30,000 miles on it. It's total, total beast. Actually, I drove it the other day, and like a guy our age, my age walked up and he's like, where'd you get the Cadillac?
Starting point is 00:02:24 I was like, oh, hell yeah. There's always a story, right? There's always a story about how somebody got Cadillac. Hell yeah, I got this Cadillac, 2008. Sometimes at V-5, sometimes it v-6, depending upon the day of the week, if it's cold or not. Anyway, so I started to refer to it as the Cadillac, after the Billy Joel line.
Starting point is 00:02:50 And my kids are just like, oh, you're such a loser dad. Yeah. loser. What's up with you? Have any roofs broken this week? Anything exciting happen? There's so many things. I feel like I would need 30 seconds just to gather my thoughts, but I haven't had that today. Have you joined like a CEO peer group? Is there one in Columbia that you would want to be part of? There's a handful, you know, in terms of like YPO, EO, C-12, all the different things. I am not in one. I've committed more to a group called tugboat Institute.
Starting point is 00:03:25 Yeah. This is when I was teasing you a couple of weeks ago why I'm going to Anaheim in October. Is that the thing that Kevin Dahlstrom is talking about a lot or something different? I don't know. I'm not sure. This is a group of maybe about 300, 350 member companies that are all private, no outside investment and kind of like intentionally private. They would refer to themselves as evergreen businesses.
Starting point is 00:03:48 But they range from about $5 million in revenue to I think like $7 billion in revenue. But most of them family owned or ESOPs or perpetual purpose trust, things like that. But I've gotten a lot of value out of it. But it's not a weekly, monthly peer group kind of thing. They do have some of that, but I'm not in that part. Got it. And like, do you meet people through it or no? Yeah, yeah.
Starting point is 00:04:11 There's basically like no investment bankers, no like salespeople. And it's kind of the primary owner, CEO only. but really, really cool behind the scenes look. So going to visit a family-owned Hispanic grocery store chain in Texas that has like $2 billion in revenue. Oh, which one is it? La Fiesta? No, Northgate Market. That's not what it's called in the market. There's no way that's the, there's no way that's the brand name.
Starting point is 00:04:46 I'm pretty sure it is, but I haven't been there. I'll let you know in October. It may be called. It would not surprise me if their real name is. La Fiesta is the big one, I think. Then we also have a Calabra meat market, which is pretty big here. It's a place you can go if you want to buy like a whole pig. This is just in California.
Starting point is 00:05:05 Oh, I thought you said it was in Texas. I'm so sorry. I may have said Texas, but I was just talking to a Texan, so it just, you know, comes out. But yeah, they have, I think, like, 43 stores and like 6,000 employees in California. Yeah. Crazy. Yeah. Speaking of, exciting.
Starting point is 00:05:20 I need a peer group, probably more. Yeah, anyway, do what you want. All right, so from our group chat, I pulled this deal out for us to talk about. It is from Peter Askew. He recognizes he's a Twitter guy. Yeah, this has gotten a lot of traction, I feel like this post.
Starting point is 00:05:37 Yeah, this is a way to, if you have a business that you're comfortable selling and being known that you're selling it, it's another benefit of having an audience. Like, this is great case and point. People are like, why do you do this like content stuff? And for me, the cherry on the top is the things you can do with it. I like actually teaching and creating.
Starting point is 00:06:00 But the fact that you could do stuff like what Peter's doing here is just incredible. Yeah, I was amazed. I just, I didn't follow the thread for that long, but I looked back and he kept commenting, like, I have two phone calls set up tomorrow. I have five phone calls set up tomorrow. I have like a backup offer, you know, like it's kind of interesting. So, so this is, he tweeted it out. He got 163,000 views.
Starting point is 00:06:24 There's no SIM, no broker, no nothing. The picture that he has is his foot and a pair of jeans looking at a mountain, which, by the way, genius marketing, Peter SQ, 10 out 10% for that. So he put it out two days ago from this recording. So 1211 on August 17th. And Peter, his, his handle is at search bound. And he says, does Peter ask you? Strongly considering the sale of dude ranch.com business with a $225,000 asking price. Thought I'd mention it here on Twitter before I hire a broker.
Starting point is 00:06:59 The trailing 12 months is currently $50,000,575. I assume that's a profit. It's a directory marketplace biz model and only expenses are domain renewal and hosting. All revenue is direct from Dude Rancher's traffic is up 30% year every year. It runs on WordPress. If you're looking for a low-tech project and enjoy travel, ping me below or peter at duderanch.com.
Starting point is 00:07:21 Here's a picture for me at one of my customers. I put that for it in. Moose Head Ranch in Jackson Hole, Wyoming. Happy to answer any questions. Then I'll go through some of the questions. I just told, oh, Bill wanted to feature them on Acuonan. And he said it might be sold by end of the week.
Starting point is 00:07:40 Might be sold by that you guys recorded. Daniel Vassallo, who's also a tweeterer, asked, does it run passively, or is there an operational effort in building and maintaining relationships with the ranchers? Peter says, I manually send invoices monthly to my ranchers. I guess that's passive, not much effort needed for rancher relationships as the site performs well driving them leads. I'm happy to make intros. There's a early conference in Billings, Montana, that I attend, and I haven't raised rates in 10 years, so there's an opportunity there are also.
Starting point is 00:08:05 Base fee is $575 a year. So maybe we're talking about what this Peter, this Peter's business does. Do you know? I have no idea. I looked him up because this is kind of like the perpetual question we ask is like, why is this person selling the business? And Peter seems like just really quick, he writes, he says he sells onions at Vidaliaonions.com. He does ranch jobs at ranchwork.com. Dude ranch vacations at dude ranch.com.
Starting point is 00:08:35 And they have some other kind of random projects. So what is a dude ranch, Michael? You don't know what a dude ranch is? Well, this is like the hypothetical question we always ask at the beginning of the episode of what a company does. I was just messed with you. It only took me like five episodes of you guys kind of getting the back and forth of how we play the role. If somebody asks you hypothetically, do you know what X is? The answer is always no.
Starting point is 00:09:00 Hey, do you know what color the sky is? No, I don't know. Explain it to me. The answer is always no when you're recording a podcast. So anyway, dude ranch.com. I pulled it up here. It's on the screen. It is a dude rant.
Starting point is 00:09:11 Expedia for Dude Ranch Vacations. That's how I would describe it. So you can pay as a dude ranch, like basically you own one, and you would like to get a bookings from people, and you go to this website, and it's got a combination of things.
Starting point is 00:09:27 One is just straight-up listings, and then it looks like promoted listings. And so Peter says, basically, folks pay $5.75 a year to have their dude ranch listed here, and you can basically go through and search adult only weeks which
Starting point is 00:09:44 I have some jokes about that but we'll just keep it to ourselves geocaching fly fishing Orvis fly fishing peck trips petting zoo and pickleball and you could choose your price and what months they're open and that sort of thing
Starting point is 00:09:55 How big do you think the Tam is for this? I just don't really know I've never done this usually I ask Bill GPT this but I would guess I would guess there's not that many dude ranches
Starting point is 00:10:07 so I mean look we have the map right here, at least in terms of his kind of, you know, his customer base. Because the Dude Ranch itself is trying to figure out how do we, how do we get connected to our potential clientele? Just like an Airbnb host wants to make sure that their availability is posted for potential guests to see. So the Dude Ranch, there's probably 200, give or take on this page right now. They want more clientele. They pay DudeRanch.com $575 a year. Correct. in order to be in front of people's eyeballs.
Starting point is 00:10:42 And I'm guessing he's done something on the SEO side to, if you're looking for a Dude Ranch location, you end up on his site. Yeah, I think that's the whole thing. The whole game here is I think he has SEO the hell out of it. If you type in Dude Ranch Montana, this comes up. What's like the average price point for something like this? I'm thinking about the value proposition in the Dude Ranch's mind. We pay this amount because we're going to convert, you know,
Starting point is 00:11:07 many multiples of that and kind of Oh, I bet you're paying thousands of dollars to come, yeah, come visit.
Starting point is 00:11:16 So here, I'll pull this one up in Canada, the Banff Trail Riders, and then it links me to their website. Beautiful. It's a point.
Starting point is 00:11:23 Dude, these guys own horseback.com. First one I clicked on. Oh, wow. Yeah, so lodge vacations,
Starting point is 00:11:32 backcountry vacations, $1,000 per person. So it's $500 per day. This one is $1,89 per person for three days. So you're paying $5 or $600 per day to stay in substandard lodging and ride a horse. Where's Heather when we need her? Jeez. Not the substandard lodging, Heather, for when you listen to this.
Starting point is 00:11:56 So, I mean, I think your question is a good one. How much of this is fixed cost versus marginal costs for these guys? And it looks like there's a lot of fixed costs where you're staying in these lodges that they have builds and all that kind of stuff. So it's important to have high occupancy of those. They do look like they have marginal cost where they are, I'm sharing the wrong tab. They do have marginal costs where they are having to pay somebody to take you on as a guide and need more horses and all that kind of stuff. So it looks like it's a mostly lodging type expenditure, right? If you imagine 300 bucks a night towards hotel, 200 bucks a day towards amenities and
Starting point is 00:12:31 the riding the horses and all that kind of stuff. So that's kind of where my mind is on this stuff. So these are, you know, if it's $1,000 per person for a two-night thing, you know, a family of four, you're spending $4 to $5,000 on a trip plus travel. I mean, if you're, if I'm leaving South Carolina to go to Montana, I'm going to do it more than two days. I'm probably going to shoot for five to seven. Yeah. So, yeah, I think this is one of those things where, you know, I could Google around and maybe try and find one, but it looks like on dude ranch.com on the website that Peter has. is there some kind of, it looks like there's a review kind of component to this, right? Where you're getting kind of the accumulating advantage of all the past instances of customers,
Starting point is 00:13:20 instead of me just like trying to go on TripAdvisor or something that's not as niche and getting less of an experience. Don't you think there's a kind of element of this where the niche like builds and builds and builds on itself? Yeah, the reviews are powerful. you know, you also have a situation where the link juice has got to be huge, right? He owns dude ranch.com, which is kind of worth us taking a pause
Starting point is 00:13:45 to talk about Peter's model. His whole model is, I find a reasonably priced domain name, and that gives me the idea of the business to build. Like, you're like, how does this guy do Dude Ranches and Badalia onions? Well, it turns out, guess what two domain names he owns? Dude Ranch and Gerdly.com.
Starting point is 00:14:03 No, I'm just kidding. He owns Dude Ranch and Vodalia. Vadalea Unions.com. So that's why he sells Vidaliannions. Yeah. All of his tweets are that way. And then I think the important thing about this is this basically has ski trip economics. And ski trip economics are the thing that the entirety of like,
Starting point is 00:14:22 Vail resorts, all these ski trip businesses are built on, which is if people only have two weeks a year to go skiing, they'll pay up to go to the absolute best place and they pay $300 a day to go ski bail. If you're going to go do this, you're going to go on something magical. You're not going to just go to Jim's backpacking slash dead horse, you know, sleep in a tent type thing. You're going to spend up for this because it's a once-in-lifetime thing. Yeah, and the cost of it going wrong is like worse than the cost of paying for insurance in essence. A billion percent.
Starting point is 00:14:53 The first thing I thought that when I saw this tweet was this whole conundrum of like there's good reasons and bad reasons to sell a business. So Peter has a bunch of different things going on. And, yeah, why are you, this person you have pulled up? Why are you selling to focus on onions? Yeah. To focus on onions. I think that's the first time in the history of the English language. That sentence has been created.
Starting point is 00:15:17 Yeah. Where are you selling? To focus on onions? Question mark. All right. Peter said to sort of pull some money off the table but also to inject some new blood in the project. I still love it and I'm strongly associated with the industry, but I haven't done a good job utilizing social media and haven't done much outbound
Starting point is 00:15:30 sales for new signups, et cetera, that sort of thing. To me, like, I don't know, I haven't had a conversation with Peter, but this could be a great example of a good reason to sell. The fact that he calls it a project, I think, is like the crux of it. There's plenty of people who really enjoy taking something from nothing to something, which is presumably, I think, what Peter did here. He found the domain, built the site around it. And now he's going, hey, look, this isn't, this doesn't excite me as much.
Starting point is 00:16:00 I'm doing it a disservice. I want to keep doing my zero to something, you know, my zero to one. I don't want to go from one to 10 on this. I did see in some of the comments and stuff he had made in the thread that he's being pretty discerning about who he's talking to as buyers and what the right fit is. And so I almost love the fact that this is like the competitive advantage is pretty durable and he can put it all out in the open.
Starting point is 00:16:28 This is contrary to your typical. broker conversation where it's like, I can't even tell you, you know, anything about it until you sign an NDA and give me your social security number. And it's like, how fragile is that business compared to this? He's putting it all out there. He's telling you the pricing. Yeah, a million percent. It's almost like, come compete with me. Like, there, you can't, you know, I have dude ranch. com. Oh, man. Well, this is my, I was looking at the website and I was like, okay, well, could you get this to $100 or $150,000 a year in revenue? And I was like, up, first thing I would do is like figure out how to like get closer into the value chain
Starting point is 00:17:03 and provide more value of the customers and like consult with them on how to find the perfect dude ranch. And they're doing it, but no offense to Peter, this is way under monetized. They've partnered with these dude ranch vets, Bob and Karen Foster, who are kind of what you imagine of what people look like who love talking about dude ranches.
Starting point is 00:17:26 And they are charging not $10, not $20, not $30, but $40 to sit down and talk with you and share all of their expertise having visited all these dude ranch in the world. They're not making commission. They're not a travel agent. Like, Bob is just doing it for $40, for thousands of dollars on a vacation. Are you ready to take a leap into business ownership, but you don't know where to start? Well, look no further than Acquisition Lab, the premier resource for entrepreneurs seeking to buy
Starting point is 00:17:58 their dream business. Founded by Harvard MBA and acquisition expert Walker Dibble, the lab is your fast-track to success in the search diligence and acquisition process. With hands-on support, world-class resources, and a community of like-minded entrepreneurs, Acquisition Lab gives you the tools and confidence to navigate every step of the journey. And we're proud to call Walker and Chelsea, the lab's director, longtime friends of the podcast. They're passionate about helping entrepreneurs like you take the next big step. So don't wait to make your business ownership dream of reality. Visit AcquisitionLab.com today, to learn more and schedule your free consultation. And when you do, be sure to tell them the Acquisitions
Starting point is 00:18:33 Anonymous podcast sent you. I think that's so cool, though, because it's almost like, not if you want to make money, though, bro. Well, right, all he's doing probably, and Peter, correct this if we're wrong, I hope you listen to this, is that you're trying to focus on the core thing, which is how do I get more dude ranches to give me my base, you know, cost, the $575 per year? And so then you have a person like Bob and Karen Foster and you say, look, you guys love this. You want to pay it forward. They may not, dude ranch.com may not even take a big on this. They may not even skim it. It's just paid.
Starting point is 00:19:08 Yeah, it's paid directly to Bob and Karen. And it reinforces the entire, you know, community aspect of this. And I agree. You could as a pure capitalist extract more value out of this. but I think it probably just reinforces the core business. Yeah, okay. So then you're arguing the way to grow this is kind of what Peter said. So somebody asked, what are the grown opportunities for a new buyer?
Starting point is 00:19:36 This is so good. Every seller should do this. Yeah, just put all your cars on the table. It's just a live Q&A. And if you ever do sell a business, my number one recommendation to you is from day one, create a fact every time you get asked that question. if you get asked a question, write out your answer,
Starting point is 00:19:54 copy and paste it, put it in your data room. I do that every single time. That way, by like the fourth person, 14th person to look at your SIM, there are no more questions you're being asked. Okay, but anyway, so what are the growth opportunities for the new buyer?
Starting point is 00:20:08 Peter says, I haven't raised rates in 10 years. My base is $575 per year. Okay, can we agree that's low enough or does your socialist, communist, worldview, kumbaya, decide that. Are we not? I can my capitalist friend come back, Mills? I am a capitalist, yeah.
Starting point is 00:20:23 Have you seen that clip from the guy who sells something to farmers on Shark Tank? And they're like, why aren't you charging more? And he's like, because I'm selling to farmers. And they're like, but you could charge more. And he's like, but I'm selling to farmers. It's like this thing that helps water trees or something. I keep seeing the clip online. That's what I have in the back of my mind because I think there is something about this
Starting point is 00:20:41 that is like incredibly, like, operator-minded. for the base of these operators. And I just wonder, yeah, could you extract more value in the short term? Yes. Does it dilute the core essence of this? Maybe. But go ahead. I agree.
Starting point is 00:21:00 If he doesn't, if you don't raise prices in 10 years, you probably need to raise prices. Doesn't matter what you're doing. Well, I think it's somewhere in here he talks about how he has no churn whatsoever. Yeah. It's like,
Starting point is 00:21:09 yeah, it's because your product's too cheap. Like, thanks, but look, he's charged $575 a year. Let's say on average, he's sending 50 leads to your typical
Starting point is 00:21:19 Dude Ranch per year. That means they're doing, let's say, 50% conversion on those or let's say even 25% conversion at a $7,000 per. Like, he's doing, he's sending, for $575, he's sending these guys $150,000 for the business. Like, that's too low. It should be at $1,500, right? Okay. Then he says, I have a list of around 50 ranches that advertise with my friendly competitors that I've yet to pitch our services to Vidalia and wrench work because they hide his time. So he doesn't sell anything. He doesn't have, you don't even have a salesperson. An opportunity to offer new ads on an email newsletter and also expand on my signature Rance Awards that I haven't run in a few years, but that's just a few.
Starting point is 00:22:00 Signature Ranch Awards, you know what this reminds me of? Wine ratings. Yes, one of our favorite, favorite hustles ever. So if you're new here, if you haven't been here for the past 500 episodes. Episode like 12, I think maybe. It was very early. and we're just like, this is such a good business. So they were doing $3 million a year.
Starting point is 00:22:22 The way this wine business worked is the wineries would pay this service to rate the wine and give awards. Most everybody won an award. And the wineries would send them free wine. And then they would hire independent contractors to do it to taste the wine and write up reviews of the wine and then give an award. And so everybody won. And these people just collected several thousand dollars a year from each winery who wanted an award. So this seems like a great opportunity to be Ranch of the Year and stuff like that.
Starting point is 00:22:52 Have a Ranch Gala? Yeah, it could be like, you know, best food, you know, best cabins, best, you know, glamping experience. Like, there could be a category for everything under the sun, in essence. So I think your worry is, and Peter says it here,
Starting point is 00:23:07 this project isn't a high-flying, a million-dollar opportunity. This is just a killer high-margin project where you can travel your tail off and visit some of the most amazing spots in North America's business expense and grow revenue, Could it get to $150,000 a year or more?
Starting point is 00:23:20 Yeah, I think it could, which to me reads, it could get to $150 easily for a sole proprietor. I think that these kind of circumstances are really interesting to me because whether it's this or real estate, the allure of value ad is so tempting because people go, oh, how hard could it be? I just need to do X, Y, and Z. But I think you've got to, like,
Starting point is 00:23:46 you've got to go all in on the value. bad, whether you're doing value add on a piece of real estate or on a project like this, which is what Peter calls it, you really would have to completely immerse yourself. You'd have to go to the industry association meetings. You'd have to go, you know, rub shoulder to shoulder with these folks, which if you're like me, you're a father of four and you own a business, like, I can't do that. It doesn't. The value add element is like epic as it seems, it doesn't suit me in this phase of life. But for the right person, I mean, you could have an amazing quality of life and you probably could find ways to grow this.
Starting point is 00:24:26 The real dilemma for me is, are you having to pay up for the value ad? So many times in a value ad situation, a seller wants you to pay for the value that you're going to add, you know, and kind of what could be. And I'm not saying Peter is doing that, but it just makes you wonder, a lot of people want you to pay for the growth of what's possible, not what is historical and actually been done. But wait, there's more. Well, here, so trailing 12 months, it says, I guess that's revenue, but mostly it seems like it's profit. He barely works on it. He's asking four and a half times free cash flow.
Starting point is 00:25:00 Okay. So I think it's right in that sweet spot where, you know, it's not so low that you don't even have to do due diligence. And you can just the price is your due diligence and you can ride right away with it. It's on Twitter, so it's probably honestly a pretty efficient market, you know, the Twitter comments. I don't know. I think it four and a half times, depending on your capital structure, you probably do have to grow it a little bit in order to have enough, you know, marginal free cash flow. Yeah. I mean, I think the most important thing to recognize about this is there are some businesses you run into like this one where the person has a million percent, 100 percent, a trillion percent optimized for how do I have the absolute best.
Starting point is 00:25:41 life possible with the minimum amount of work and doing nothing I don't want to do. And that's where this business is. And all the growth opportunities that he talks about just are going to require some hustle, right? So that's there. But if you, let's say, Mills, you get this. It's a 50,000. You double the, through a combination of new customers, raising the rates. Let's say we go from 575 to 775 to 975 over a couple years.
Starting point is 00:26:09 you could see yourself getting 125 or 150 that would put it at basically one and a half times one and a half times free cash flow pretty darn good I think if
Starting point is 00:26:20 I would need to figure out are we talking about are we talking is the he said it's 50,000 ballpark 50,000 trailing 12 month net right correct okay yeah that makes sense
Starting point is 00:26:33 because if you got 200 member member dude ranches paying you 575 you're at $115,000 in revenue per year So it's basically two times revenue is what's being asked a little bit over, maybe two and a quarter times. Oh, no.
Starting point is 00:26:48 Oh, no. I think he's quoting, I think his expenses are so low, basically, it runs at 98% profit margin. Oh, okay. It's a WordPress site with some credit card processing and a domain renewal. So you don't think it's $115,000 in revenue and $50,000 net? I think he's doing, I think he has 100 customers right now and he's doing $50,000 revenue. Okay. All right. Gotcha. But yeah, 98%, you know, or 95% margin or something like that.
Starting point is 00:27:16 What's the highest and best use? If you just, okay, Michael, put on your capitalist hat and, you know, twist your mustache. What's like the absolute most like just pure, you know, capitalist approach to this if you were going to squeeze every last drop out of it? Okay. This may sound half baked, but it's because it's totally off the top of my head. Number one, you've got to raise the prices, and you've got to figure out how you're going to do that without alienating people. Totally fine. Number two, I think you start to look at how do you actually go and run a sales process? Because they're not doing that. They're just totally like, well, if somebody shows up, they show up. This is something that you need to have handheld selling. I would hire a seller and put them on like 80% commission. I would do
Starting point is 00:28:00 it in a low-cost jurisdiction. Call higher than year.com. Number three, I would look at how do I add value-ad services on top of this? How do I start to make money from that concierge stuff, travel agency, all that kind of stuff I would take and try to monetize these eyeballs on top of it some more.
Starting point is 00:28:20 And those value-ad services could be more conciergey-type stuff, the agent-type stuff. Then you could actually white-label some trips and stuff like that. And start to get into that business as well. right? Like, how do you get where you're making 20 or 30% march on some of the stuff rather than just getting referral fees and that sort of thing? So those are the three levers. Raise prices, sell some stuff, figure out what else to sell the same people.
Starting point is 00:28:44 Yeah, yeah. I think that's a good playbook. My only concern would be does it, does it cannibalize and erode, you know, it's a marketplace, so does it erode kind of your marketplace? And I don't know, but I mean, that's, I think you have to extract more value, you know, and if you have to extract more value, then that those are, I agree, those are the ways you do. Yeah. And look, the way to the way to not a road a marketplace like that
Starting point is 00:29:09 is basically figure out when you charge more, how do you provide more value? Exactly. And I'm not, you know, I'm not trying to screw anybody over with all this stuff. Like, I'm just trying to, like, let's get, let's create more value for these customers on both ends of the marketplace. The,
Starting point is 00:29:24 the clients and we're delivering more. Yeah. Yeah. I mean, you could charge the ranches to do a review, right? On-site visit, you know, reports, all that kind of stuff. So, you know, there's, you know, besides just charging more for the base service, you could figure out how to add more services and create more of a premium offering. Would you like to be one of our reviewed ranches? Well, okay, here's what it costs. A free trip and it costs $2,000 a year, and we send somebody out who's an expert goes on your trip. Yeah, yeah. All that totally works. Peter, I'm fascinated by this. And I hope you
Starting point is 00:29:58 keep live tweeting the entire process. If you want somebody to grill your potential buyer with questions, we're happy to do that. For fee. Live recording. Hey, you know what? We'll give you the Bob and Karen Foster special and it'll be 40.
Starting point is 00:30:17 Oh, we should talk about the obvious thing worth worrying about. AI is coming for search. Do we think this is going to get disrupted by AI search? I don't know. those kind of questions are above my pay grade. I mean, okay, imagine this is a roof and there's a hailstorm coming in.
Starting point is 00:30:35 If AI was the hail storm, would you be worried? I'm so confused. Yeah. I mean, I think if something is, you know, if it's tethered into the digital world in such a major way like this, then yes, it could be coming. It could be coming for your inefficiency. My thesis right now is that for AI's, Basically, there will be a transition of SEO as a technology that stops speaking so much to how our eyeballs act and how the AI's eyeballs act. And you're seeing more of that. I forgot what the exact name of it is, but they've stopped calling it SEO.
Starting point is 00:31:13 They're calling it, you know, I don't know, agentic optimization or something. There's some weird name for it where people are like, okay, we're optimizing for how does Chad GPT see our site? How does Gemini CRC and so on? So I'm less worried about it. In the end, like, it's just the AIs are just a middle person coming in between you and the data. And then the data just has to get reformed for a new mental person who's not Google. Yeah, yeah, absolutely. Cool.
Starting point is 00:31:43 All right. Well, I think you put out the call to Peter. Cudos to him for putting this out there. I'm going to click like button. Good job, Peter. Sorry, sorry, pooped on aspects of your deal, but I think you're a great guy. We should have them on. That would be a fun conversation.
Starting point is 00:31:57 He seems like a great guy. I got to admire people that optimize for the life that one live. Gurdley.com is also for sale. I should put it on here. All right, everybody. Thanks for being here this week. We'll catch you next time. And if you enjoyed this episode,
Starting point is 00:32:14 please talk about it on social media. We would appreciate it. Tag Peter on it. He's at Searchbound. It's the name of it. And we'd love to hear from you. So, all right, catch you next time.

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