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by mvkel
4593 days ago
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Thanks for the thoughtful answers. Related to your #1, that makes sense if 100% of your prospective buyers know about the auction the minute it's opened, but in practice, many folks won't find out about the auction until, say, 30 days in, when they could have absolutely been interested in purchasing on day one. In short, creating scarcity isn't the mechanism for the sale; knowing that it's even for sale is. RE: #2, understood. I suppose it's just not clear that there _is_ additional administrative work that needs to be performed beyond the operational responsibilities you outlined, and it's not accounted for, where in virtually all other departments, it is. Btw, in another post you talk about "illcit" questions; I think you mean "elicit," though it'd probably bring up both :) |
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I have a good-sized email list, and they found out this morning. I structured the sale to (hopefully) get attention as well early on, and that has also seemed to work well. This was also the rationale behind the 5% referral bonus - to get people to spread the word. So there will be some buyers who, yes, won't see it until mid-way through. But there should be (hopefully) enough early on watching to get some serious buyers interested at the right time.
On point #2 - you're absolutely correct. The 2 hours / day assumes just the day-to-day operations. There will be other things that need to be done (updating site, misc. work, etc). In the full post, I do disclose this and am not trying to say it's 2 hours a day only, for the entire year.
But generally, with small eCommmerce sites like this, there is an exception for a full-time owner salary when calculating the earnings, which is what the multiple is based on. Given the fact that the total hours per week are 20 inclusive of maintenance (if being liberal) - and a 40 hours owner's salary is usually excluded from calculating income - I feel it's fair.
And thanks for catching the typo! Would you mind letting me know which post it was in? Appreciated.