Erik bergman - LAC 2017 - Time to say goodbye: How to plan an exit strategy for your affiliate business

How to sell an affiliate business

Step 1• Get you numbers in order

Basic KPI’s

• New Registered Players• New Depositing Players• Revenue• Revenue share vs. CPA/fixed fees• Costs

Basic KPI’s

Basic KPI’s for SEO affiliates

• Install Google Analytics• Organic Visits• Country split• Average time on site• Bounce rate

Basic KPI’s for other media channels

• Always keep KPI’s per month to show trend• Emails gathered / sent / opened• Apps downloaded, active users• Likes, shares, followers

General info

• Overview of partners and the deals• List of domains• Short description of the business

Step 2• Understand the valuation

• Do your research• 2-6x annual profit

Valuation

Drives valuation up

• Growth• Size• Age of the business• Revenue share vs CPA• A devoted team• Brand• Well defined business• Easily integrated• Regulated markets• Something unique

Drives valuation down

• Decline• Risks• Source of traffic• CPA vs. revenue share• Scattered business• Unregulated markets

Step 3• Prepare with consultants

Consultants

• Get a lawyer and understand the lawyer• Skip the middle man

Step 4• Contact buyers

Buyers

• Publicly listed companies• Talk around• Send an email with a short description• Sign an NDA

Step 5• Negotiations

Negotiations

• Meet in person if possible• Explain clearly what you are looking for• Ask, don’t speculate• Be pragmatic

Questions?

Erik [email protected]

+356 777 555 19