NameSilo

From a $42k Flippa purchase to a deal on Shark Tank [PotatoParcel.com]

Located in Website and Development Discussion, started by Grilled, Oct 29, 2016

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  1. Chris Hydrick

    Chris Hydrick Account Closed (Requested) VIP

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    Shark Tank season 8 episode 6



    The idea originated three years ago from a viral reddit image of a potato with stamps: HERE

    pota.jpg

    It was listed first on @FlippaDomains on May 14th, 2015. The auction ended unsold. HERE

    It was again listed on August 27th, 2015. The auction ended unsold HERE

    Then, it sold to a private party for $42,000 HERE

    upload_2016-10-29_12-32-19.png

    The seller, Alex Craig, is a mobile app developer. He created PotatoParcel.com on a Weebly platform. A contingency to the $42k 100% equity deal, since Alex was in contact with Shark Tank, was there would be a $1 royalty per potato if the business gets on SharkTank.

    Kevin O'leary offered PotatoParcel.com $50k for a 10% stake + $1 royalty for every potato sold until $150k is paid. This gives Kevin a 3X multiple on his investment + 10% of the company thereafter.

    Flippa interviewed the buyer after the sale on October 20th, 2015. HERE
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. briguy

    briguy Guru In Remission! VIP ★★★★★★★★★★

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    Love this tip..

    "Do your homework! Know what you are getting into before you buy a business. Ask all the questions you can think of, and don’t ever feel like you’re burdening the Seller. If you need more information and documentation, get it. If the Seller truly wants to sell their business, then they should have no problems heeding your requests. However, you should also show the Seller that you are serious. Lastly, it’s always easier to get a good read on someone when you can chat with them directly as opposed to over email."
     
  3. domainscp

    domainscp Restricted (Market)

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    A good read, thanks for sharing!
     
  4. Chris Hydrick

    Chris Hydrick Account Closed (Requested) VIP

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    FWIW: PotatoParcel.com also received an offer from Robert Herjavec ($50k for 25%)

    They argued that they have made over $200k in the past 13 months, valuing the company at $200k wasn't kosher to them. They countered at $50k for 17.5%.
     
  5. deez007

    deez007 The More I Learn The Less I "Know" VIP

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    Awesome read, thanks for sharing....
     
  6. Chris Hydrick

    Chris Hydrick Account Closed (Requested) VIP

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    To clarify, Alex's royalty for getting the business on Shark Tank, is only for six months after the show airs. ie He gets a cut in the viral orders that may come from the Shark Tank PR.
     
  7. ZapNano

    ZapNano :( VIP

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    Not bad creativety; potatohead much catche.
     
  8. Pierre Barnard

    Pierre Barnard Top Contributor VIP

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  9. Domainstore

    Domainstore Top Contributor VIP ★★★★★★★★★★

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    "America", the land of opportunities.
    LOL, what a story.
     
  10. Keith

    Keith Top Contributor VIP ★★★★★★★★★★

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    The way it was described on shark tank was that the site was already built before the purchase. Don't think this type of domain is worth more than $10 otherwise.
     
  11. Chris Hydrick

    Chris Hydrick Account Closed (Requested) VIP

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    The $42k sale included the developed site, which stemmed from a reddit post. Not sure why you thought this post was about the domain...

    See stats provided on Flippa prior to purchase.

    upload_2016-10-30_19-54-48.png

    upload_2016-10-30_19-55-12.png
    upload_2016-10-30_19-55-40.png
    upload_2016-10-30_19-56-3.png


    upload_2016-10-30_19-57-6.png
     
  12. DomainBELL

    DomainBELL DNOA Founding Member VIP ★★★★★★★★★★

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    what prevents anyone from doing the same thing
    slapping up a page with paypal and using
    a permananet marker to write a message on a potato
    and send it out ??
     
  13. Chris Hydrick

    Chris Hydrick Account Closed (Requested) VIP

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    Nothing at all...

    There are many followers:

    MysteryPotato.com
    MailASpud.com
    PotatoInThePost.com
    BrickOrPotato.com
    TextAPotato.com
    AnonymousPotato.com >> Groupon

    If anyone is interested in starting their own potato shipping company, SendPotato.com just dropped, and is available for reg fee as of this post.
     
    Last edited: Nov 8, 2016
  14. Chris Hydrick

    Chris Hydrick Account Closed (Requested) VIP

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  15. Chris Hydrick

    Chris Hydrick Account Closed (Requested) VIP

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    Ellen did a skit about this a while back, and coined her own, Yam Grams :D

     

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