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His high salary was $150k. You can still make millions without taking it out in the form of a salary. If he owns the company and the value of his equity increas
by rubyfan 9y ago
His high salary was $150k. You can still make millions without taking it out in the form of a salary. If he owns the company and the value of his equity increases into the millions, then he’s making millions. It sounded like he was reinvesting the money back into the business too. It’s probably a smarter use of profits if he has predictable margins that scale.
- zaroth 9y agoNo recurring revenue, no actual customers, no secret sauce. Maybe some proprietary data models, but doesn't really sound like it. So what would it be that someone was hypothetically paying for if they were to buy him out? The blog following and sales classes probably are the key IP worth paying for.
- rubyfan 9y agoHe’s pretty honest about that in the article, anyone can do it; he wants them to; and he’s spending his personal time trying to convince others to. The reinvestment is for something better than a juiced up valuation. He’s likely parlaying his profit into more inventory or scaling the team that he will profit from. Reinvestment isn’t always about selling the company.
- zaroth 9y agoAgree the large reinvestment is necessary for any growing business. But if you want that equity to be worth much there has to be something there to buy.
- coldtea 9y ago>No recurring revenue, no actual customers, no secret sauce. Maybe some proprietary data models, but doesn't really sound like it. So exactly like most of the 100s-of-millions valued internet startups? (But in this case, actually making a profit)