The Mortgage Reports founder, Dan Green capitalized on the internet traffic his site generated by selling leads to mortgage lenders. Within three years, Green crested a million dollars a year in annual revenue.
The Mortgage Reports publishes information about mortgages for home owners. Site founder Dan Green, capitalized on the internet traffic they generated by selling leads to mortgage lenders.
Within three years, Green crested a million dollars a year in annual revenue. That’s when he began to worry about new regulations and compliance as his business went from being a hobby to a major player in the mortgage leads industry. Green decided to sell and quickly got three offers from the companies he was selling leads to.
The first offer was mostly cash. The second was for half cash and the other half “at risk” in an earn-out tied to meeting lead volume goals in the future. The third offer included a small payment up front with a rich potential earn-out if Green was able to send the acquirer enough quality leads. You may be surprised to learn which of the three offers Green picked.
In this episode, you’ll learn:
- The difference between being a core product and an add-on feature
- The importance of breaking bread with your potential acquirer
- What terms and conditions to include in an earn-out contract
- How to vet a potential buyer when an earn-out is involved
Click to Tweet: Ep. 85 of Built To Sell Radio, 3 Acquisition Offers, 1 Surprising Decision.
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About Dan Green
Dan Green is CEO at Growella, a new media company that helps the current generation do more with money and get more from life. Green’s last project, the popular mortgage website The Mortgage Reports, was recently acquired, which was his third sale of a web-publishing business.
As a part of Green’s successful entrepreneurial career, he has spent time writing software and lending his expertise as a top-producing mortgage loan officer. Green’s mortgage market insights earned him a reputation as a top mortgage market commentator and he has been frequently cited in print, on the radio, and has appeared on CNBC, First Business, and NPR, among other places.
Green lives in Cincinnati with his wife and three children, all of whom enjoy living an active and healthy lifestyle. When Green is not busy running road races and web publishing companies, he can be found playing hockey, goofing in the kitchen, or logging 40-mile weeks on the streets of Cincinnati.
When you sell your company, you’ll probably be offered an earn-out as part of your compensation. Earn-outs are usually at risk and often used by devious buyers to acquire your company for less than it’s worth. But there are some surprisingly simple ways you can protect yourself from disaster.
Laura Gisborne has sold six companies, including The Art of Wine. The Art of Wine is a tasting room with a subscription-based wine club division. With $1MM in annual revenue, The Art of Wine was still a relatively small business, but when the lease came up for renewal Gisborne reasoned it was the perfect time to sell.
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