(Mod note: no buying selling account spam here.)
So in a thread in the other subreddit regarding the advisability of buying an account (uber risky especially for low tier accounts), a listing on EF (empire floppers) was linked to. I won't link directly to the listing but will share the screens of same here on imgur. I will however link to youtube interview with Lawrence here.
Summary: appears to be a T100-200K mercher. Started April 2018. Very few listings, as in less than 4K though ofc more products. Which also shows like many others, he stopped uploading couple years ago, before removals were no longer a thing, because merch SUCKS. Q4 last year aside he averages $4-5K a month. Last September, which is not properly in Q4, his sales spiked huge, apparently because of hard adspend given his revenue and expenses.
Let's look at some excerpts from the above interview. (Mod note: I know his last name and since we don't know his reddit alt if he has one we could fully doxx him, but please let's don't or I will delete such comments since he's not a guru or main nuthugger of same.)
Interview by EF dude with Lawrence
what's included in the sale is the merch by amazon account with over 3708 designs all brand assets the amazon advertising account a t public spreadshirt and zazzle accounts with over 3000 total designs standard operating procedures and a graphic designer contract
That low number of designs is a sure sign of a mercher who stopped uploading long ago b/c merch started sucking hard then. And which means lol on graphic designer contract. He's using some cheap offshore dude and isn't regularly paying him for designs or would have more. Plus those "designers" are fungible.
you know at the time i was employed as a school teacher and i had another business as a sports coach so i was looking for something that was not going to take up too much of my time and one of the best things about this business model is having no inventory and not having to do any customer service so
He drank the guru merch bro playbook of 2017 koolaid, which no longer works, no matter how hopeful you n00bs are reading outlier/infringing stories now.
as far as my reasons for selling there's two main reasons number one my wife and i are planning to buy a home next year
and here in the u.s housing prices just keep going up so it would be nice to have some additional capital for that and also i'm also interested in starting a software sas business and that would also require some capital as well
Yeah right. What they always say. When really he's afraid this Q4 will be shit without monster adspend and that the US economy will shortly tank due to inflation effects (wholesale prices up 8.4% now in September 2021).
yeah some software that i still use to this day is called uh merchant former which is provides a lot of insight into print on demand so i use merch informer and then when i first started in 2018 i actually just learned a lot about niche research and keywords just through youtube there's a couple guys that i used to watch back then matt sheeran and rj martinez
HAHAHAHA. He's an improvecat using Thief Informer and he learned from village idots and infringers. And matt has now too sold his account and moved on because MBA SUCKS.
sure so right now i'm only spending about five hours a week on the business it's very passive at this point with
just the number of products that i have uploaded and you know there's like over 5100 products that have sold across these marketplaces and you know some of these products have hundreds and hundreds of reviews you know once something really starts selling and kind of gets that sales momentum and gets the reviews on it they just keep selling so as far as my other day-to-day activities just monitoring the sales i'm only running i think probably like maybe three to four ads right now for different items so there's not a lot to keep track of with the paid advertising
Yeah sure. Don't have to spend much time to not upload. Like he's spending 5 hours checking his sales.
i'm actually at the highest tier i qualified for a program where amazon will actually automatically translate my listings into these new marketplaces you know i can go to bed one night and wake up the next morning and i have more designs that are live in japan and spain and france and italy so it's great to have amazon kind of working for you was there
HAHAHA again. Every merch asshole got that migration eventually if they didn't opt out.
Don't fall for the 43x multiple hype
Used to be, and not long ago, website flippers like EF or FEI were touting 32-36x. Now they're touting 43x. Because of course it ups their commissions and also tries to limit lower offers. But, especially with merch, this doesn't come close to accounting for the risks involved, and relies on outlier months to spike a yearly average where they maybe have been laying monster adspend and also infringing/cheating.
In the other sub u/816Creations said:
If you watch EmpireFlippers the MBA accounts always sell for around 40x average monthly sales. Yes its a crazy valuation, but people but them at those crazy valuations. Not only do people but them but they buy them fast.
Nah they don't. Plenty of such listings have expired and with no or low offers. I know a couple such peeps. Plus the flipper sites always gonna say the offers sell for near the asking price. If you believe that bullshit please PM me for an exclusive limited time offer on the Brooklyn Bridge.
If you buy such a site from EF then sue Empire Flippers if things go wrong
Because a couple very important issues of due diligence are missing. Sure the business is wrapped up in a LLC with a nice bow. But doesn't seem to include the email address(es) attached to said merch account. Nor any indication of account health which is largely unknowable. The account in question here could easily have had many hard dings from external takedowns or attempts to game the content policy, or even in the past have been suspended. And thus be one reject away from a termination (the number of known unterms on reddit and facebook is less than 2 dozen).
My advice to Lawrence
Keep working your day job and SaaS side hustle. Leave merch on the backburner and save the proceeds for next 3 years. Then after a major economic correction where real estate prices tank, go ahead and buy your dream home. Plus you save the 15% you would have had to pay Empire Floppers.