Salary is a different matter, CEOs of new companies dont earn from annual revenue but more from stock sales and gains.
Paying 150k is also before taxing and profits and is an expense in wages.
Taking a quick guess and say that this person has 1 million in profits, but most likely 1 million to 2 million in gross profits instead of net from what I can think is more likely and 150k in his salary as well as wages for 11 people and warehouse rent which likely reaches 700k to 1 million, he likely has around 3 to 3.5 million in revenue and net profits of likely 50k as thats your average web retailer net margin
$8 million is sales since starting.
So what would it be that someone was hypothetically paying for if they were to buy him out?
The blog following and sales classes probably are the key IP worth paying for.
The reinvestment is for something better than a juiced up valuation. He’s likely parlaying his profit into more inventory or scaling the team that he will profit from. Reinvestment isn’t always about selling the company.
So exactly like most of the 100s-of-millions valued internet startups?
(But in this case, actually making a profit)
That said, presumably the value of the entity could be a multiple of the revenue. Either way the article fails to shed enough light on it.
But, the actual net margin is unclear. At least $150k, since he paid himself that. But it's not clear that it's millions.
Edit: He contradicts himself..."four years later, we're a team of 11 and we're doing well over $200,000 in sales per month"
$200k/month isn't even close to $8M/year. And you aren't netting 7 figures with $200k/month and 11 employees. Now I'm thinking this is just a puff piece for his get-rich-quick lecture series. Too bad, as it's probably still a decent story with the actual figures. Just not a rags to riches one.
I'm also having trouble visualizing 11 people buying $8M (retail) worth of stuff from WalMart in shopping carts. That's $2k per day, per employee, every day.
The article is just content marketing for him to sell his "get rich with an FBA business" course.
It doesn't say $8M/year, it says $8M total sales by the end of this year. So from the founding of his company, to the end of this year.
Ahh, yes, of course.
Your call on whether it's a genuine desire to share his success.
But, thank you.
In which case very cheap sometimes works. Like, "I'm not looking to make money but help me cover gas and venue rental"
I sometimes recommended them to online friends who had just lost a job or whatever, but they didn't get it. They didn't see what I saw.
So, I started a blog to try to explain how to make it work for you:
I also have a longstanding homeless site:
http://sandiegohomelesssurvivalguide.blogspot.com
I created flyers:
http://sandiegohomelesssurvivalguide.blogspot.com/2017/10/sp...
A couple of people I know socially are interested and have given me some useful feedback. I updated the flyers and one website because of the feedback I got.
I think I need to make local contacts and establish trust. Maybe do some volunteer work. I am not sure.
I would like to start here, but also actively encourage people to get into things like Etsy. There is good internet service in this town. But, I think they just need to get the word that it can be done. Remote work and gig work seems to be kind of big city, cosmopolitan culture. This is an area that historically did a lot of logging and fishing.
There is interest in, for example, IT related meetups. But nothing seems to actually be happening.
Maybe if I were representing some religious organization, people might buy that I am just well meaning. But, I don't do religion.
:/
He said $8M total (over 4 years), not $8M a year.
If one is going to discredit the article, at least they could read it carefully.