How Michael Bereslavsky from Domain Magnate leverages private equity deals under $ 1 million

Michael Bereslavsky from Domain Magnate brings Private equity to online niche companies.

Michael has been building since 2004 Online businesses. He’s had a lot over the years hard lessons and unique experiences.

He found the best complementary strengths and profitability in purchase, Manage and sell websites.

Today is Michael now the founder and CEO from Domain Magnate, a micro Private equity Festivals specialized in purchase and grows Online businesses under $ 1 million.

Additionally, Michael is now a partner at Deal Flow Brokerage.

Listen to the podcast to see how Michael started and some of his most memorable offers.

Watch the full episode

Micro private equity

You can find one Private equity Festivals Specialized in pretty much everything. Real estate, Oil, public works, banking, royalty funds and even Private equity Companies be specialized in something Art investments.

Domain Magnate has been around for some time with their investment strategy in the micro online business world (online business less than $ 1 million).

Domain Magnate appears to be a similar at first glance Brokerage like Q.uiet Light Brokerage or Dealflow Brokerage. Brokers usually don’t manage or take money from investors, which is why Domain Magnate is structured to have a small Private equity Festivals.

The idea of ​​one Private equity Festivals purchase A company that is restructuring and growing for resale is not uncommon. It’s probably the norm, but historically, niche online sites would have been too small or too risky and would have looked.

The investment opportunities are unique. Michael and his team bring fresh insight and deal structure to the established websites Exit strategy for investors to participate in the profitable business.

Investment opportunities

  1. The big fund:
    The first option is for the passive investor. The team is currently at Domain magnate intends to raise $ 3.5 million for their next fund. Participation in the fund requires an investment of at least $ 100,000.
    When you invest in the fund, it is a passive investment, which means you won’t have to make many decisions. Domain Magnate will buy websites in the first year, expand those websites, and in the second year pay dividends on the income or sales of the companies acquired in the first year.
  2. Buy Manage Program:
    In a way, this is similar to the operator model. When investorYou own 100% of the company you bought. The difference between the operator model and the Buy-Manage program that the Domain Magnate Team provides is M&A processes.

    A typical operator would do that websiteDay after day where Domain Magnate will focus much more on the initial purchase and eventual sale of the website for a profitable flip. (in addition to everyday life.)

  3. Invest family funds::
    The third way that you can invest Domain Magnate is through a family fund structure. Other major family funds or family office investors will come to Domain Magnate to diversify their portfolio through online investments website Companies.

    The minimum to invest in this space is currently around $ 500,000 to $ 1,000,000.

Current portfolio success

The model works well for the team. Her first fund generated total income of $ 775,604.40 and an asset estimate of $ 275,000. You can see some of their real achievements on their website here.

Domain magnate

You have sold 4 of the businesses for a total of $ 494,000 and 5 remaining locations with an estimated total market value of $ 275,000.

If the fund were to be liquidated at fair market value now, the total value would be $ 1,050,604, with a total return of 130%.

To begin

It would take some courage to manage someone else’s website portfolio and have a lot of confidence in investors. How did Michael get others to trust him that he invested millions of dollars?

Michael started to work Online business He went to university in 19 to become a software engineer.

The problem was that Michael was a terrible software engineer. In fact, he had problems coding. He got interviews with some of the largest tech companies in the world, but by the time he got to the coding part of the interview, he inevitably never got the job.

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However, it was around the same time that Michael found out he could make money from it Online businesses.

First income

His first entry into the online business world was in 2004, and there weren’t any courses teaching you how to make money online.

Three short years later, in 2007, he made his first six-figure income. He was drawing $ 10-15,000 a month from Adsense.

Michael remembers the trouble at the bank when he had to tell the cashiers that he didn’t work for Google.

“No, I don’t work for Google. It is a payment on the Google Ad Network. ”

Since then, Michael has closed hundreds of deals. Most of them are relatively small but have steadily increased in size.

What started as $ 100 acquisitions went on to $ 1,000 acquisitions and then to $ 100,000. Michael even took part as a consultant for 7- and 8-digit deals.

How to Negotiate Website Deals

Michael says the key to bargaining is keeping your cool and sticking to the facts.

Quotes often fail because of a minor disagreement. If you stick to the facts, you can take some of the extreme emotions out of the equation and get better and more consistent deals.

Land a big one deal know what you want in one during negotiations deal is the first step. Whether it is for one client or personally, Michael chooses a number of criteria for websites.

Select criteria

To the Domain Magnate One of the main criteria is organic traffic. While there are many other factors, that really matters Buyers.

For some this could mean a content page, for others a SaaS business. Key figures such as price, result or industry are just as important.

Everyone deal Domain Magnate is a bit unique, but there are a few similarities for everyone. Here are just a few of the steps Domain Magnate takes in managing the process of purchase, Manage and sell a website.

Domain Magnate Process

  • Procurement offers: As an early space pioneer, Michael has an incredible network. Build relationships This enables him to source offers that are often not found on your normal brokerage websites.

    Michael is a partner at Dealflow Brokerage, which was officially owned by Flippa. When it comes to purchase Websites Michael recommends that you let your networks know that you are interested purchase.

    If you’re the first person someone thinks of when they think about selling a website, you’re often the first to come to the table to negotiate and facilitate a great one deal for all parties.

  • Due Diligence: Domain Magnate aims for 10 to 20 larger six-digit amounts each year deals. Michael himself has participated in hundreds of deals in his life.

    This experience allows her team to quickly identify the red flags and minimize a’s chances deal Go Bad. Fraud in selling a website filled with PBNs or incorrect metrics is unfortunately not uncommon and can mean the difference in success or in the loss of thousands of dollars.

  • SEO Manager: Many of the employees at Domain Magnate are SEO managers and assistants. Rigorous inspection and verification is carried out after each location purchased, both before and after the purchase. The website Receive a unique strategic plan that includes a product budget and location expectations. When a website has a lot of potential and room for growth, a content plan is more aggressive than a website that has been around for years.
  • Link building: Domain Magnate knows that in today’s market purchase Links may be necessary. With the large network, the team has created a list of operators and site owners with whom they do business on a regular basis.

    Using this network connection setup makes this much easier. You can always call the local owners to create links.

  • Monetization: Once a website is added, the team adds premium ad networks and partners. With affiliates like Amazon slashing affiliate commissions, looking at other networks like Shareasale is an easy way to increase commission rates.

    In addition, the Domain Magnate team is not afraid of negotiating its own commissions for partners. When managing multiple locations, a small increase in income can add up and be worth it.

Does the process work for all websites?

Michael admits this is not the case. One or two locations in ten fail. We are all human and 80% of the time making a profit is not bad at all.

Some results are faster than others. Websites are bought with the intention of selling in six months to a year. Domain Magnate is also considering holding cash flow well on larger websites. The team understands that the change is consistent and needs to adjust to the circumstances if necessary.

What’s next for Domain Magnate?

Michael grew steadily from $ 100 to $ 100,000. So the next natural step is to get bigger. Michael says they want to buy some low 7 digit companies in the near future.

Closing bigger deals and finding great people are the current priorities at Domain Magnate.

Domain Magnate currently has twenty employees, and Michael mentioned they are hiring more.

If you want to get in touch Domain MagnateFor more information on investment opportunities or vacancies, please visit DomainMagnate.com.

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