On the 59th episode of Marketing Interruption, your host Andrew Maff talks about a topic that sometimes seems too far to reach for some e-commerce sellers, acquiring other businesses. However, he dives into how you could acquire other e-commerce businesses to grow your email list and even your product line by spending very little to zero dollars upfront. It may seem like a foreign concept, but it's doable!
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Hello, and welcome to episode number 59 of marketing interruption podcast and today I'm going to talk to you about how you can scale your e commerce company by purchasing other companies. And by potentially paying zero dollars for them. Yes, it does sound like a scam? No, it's not. I'm actually going to give some credit to Roland Frasier for this brilliant guy I met him through a friend at was the conference traffic traffic and conversions. Couple of years ago, obviously would have met him again probably this year, but you know, COVID. But he he does, he's just a brilliant guy listening to him speak was nuts. And one of the things that he's always kind of preached was the other ways to kind of scale things like the tricky ways to me is a growth hacker. I don't know if he actually likes to be called that. But he's a bit of a growth hacker.
So, acquiring other ecommerce companies, why would you do it. So expanding your product line seems pretty obvious, that obviously you're going to take on some more assets, but you're also going to take on some more liabilities. And so that can get a little bit messy, but it is a great way and an easy way to expand your product line. If you have, let's say you do pet products and you sell. I don't know leashes and harnesses, and you go out and purchase someone who creates collars, like custom made collars. It's a great extension of your product line, it can really help. Fantastic, awesome do it seems pretty common, right? The other side of it a lot of people don't think about is what else you can get out of that. Yes, you can learn some of their infrastructure, maybe they're manufacturers great. Maybe they're three pills. Great. There's some other things there. But the one thing that I find a lot of people don't think about is you can actually expand your list. So again, we'll use leashes and harnesses as an example. And then you go out and you purchase collars Well, what if they weren't really selling as much as they wanted to, but they had a list of 500,000 people that buy seasonal dog collars, all of a sudden you have 500,000 extra people that you can reach out to about a leash, or about a harness. And so now you've expanded that. So now it's not so much about Can I continue to sell sell these collars, now it's more about how can I leverage the existing audience of the the collars, purchasers and use them for me, or for my own brand. So that is definitely a fantastic way. Now the tricky way that Roland has always talked about about how you do it at basically zero cost or a minimal cost is to actually work out a deal with some of these smaller companies who aren't doing as well and they're looking for a way to exit, but they may be in a certain situation. So there's going to take some searching, there's going to take some extra things that you need to do to kind of really do your due diligence and make sure that you're finding the right person in the right company for this fit. But you can actually work your work out a deal with them and and structure something in a place where you actually are offering them a profit share of either everything that you sell, or you're offering them a profit share their product line. So if you were to buy the collars, you could say, I'll give you $1 for every collar that I sell until you make $500,000 in which case fantastic. You literally just bought an entire company and did nothing, you paid nothing and you're gonna and you're gonna end up paying this guy for the next several years, but you're only given $1 per unit and depending on your your margin, of course, that may be totally worth it.
Then I lost my train of thought. Then on the other side of it, obviously, you might be willing to completely allow I'll give you 100% of the profit from the collars that I sell. So you're not going to make $1 off the off the collars however, you're going to be able to upsell them with your leashes with your harnesses with other things. So your current business is going to expand and then eventually you're going to pay off the previous owner and now you have both. So there's really ways that you can get creative with some of these structure deals. Some people are so afraid of purchasing another company there. so worried about Oh, how's it gonna go and there's so much it gets so messy and it can and it does. But once you've done several of them, it starts to ease up. And you can actually just start to structure and template out how it is you purchase someone what you have to do, and there's going to be some lessons you're going to learn along the way. Maybe reach out to Roland Frasier, I'm sure he'll help you with that. But it's a fantastic way to grow your list. It's a great way to expand your product line, maybe even take on some existing capital if it's coming in pay on how that looks. But you can get really creative with this kind of stuff. So check out places like Shopify exchange, if you're a Shopify seller, that's a great way to go. So Shopify exchanges people who are looking to sell their Shopify sites and their businesses. Be careful with it because some people just create a shitty website and then try to sell the site itself. biz buy sell is another great one and exchange marketplaces another great one. So check out those places it doesn't even hurt to even look into it. Sometimes you can just set up alerts in a lot of these places. And you can actually just find out like, Oh, great, here's a company in you know, pet supplies it's interested in now I can go purchase them. It's a great way to grow your company. Great way to expand it, think about it, look into it. I don't want to ramble on about the same thing. And of course, go check out Roland Frasier, but if not, I will talk to you all tomorrow rate review, subscribe, and I will see you then.