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Lessons Learned from Starting and Selling an Affiliate Marketing Technology and Services Company

July 27, 2013 by ShareASale

Editors note: The following is a guest post from Todd Farmer, one of the legends in the Affiliate Marketing Industry Todd shares with us his lessons learned founding, running, and selling businesses. Enjoy!

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Back in 1996, I started my first Internet Marketing Technology and Services company, “Kowabunga! Technologies”. We started our business by producing some very popular email marketing software — one of the first of its kind. We were cutting edge. We were young. We had a lot of fun. (And we made a lot of money.)

In 1998, as part of a growth and diversification plan, we developed and launched one of the first Affiliate Tracking and Management solutions for “in house” affiliate programs, called ‘My Affiliate Program’. By 2000, we had completely repositioned the company from Email Marketing Technology to Affiliate Marketing Technology and had further expanded into Affiliate Management Services for our clients. viagra cost Kowabunga was a total bootstrap start up that began with zero outside investment, a geeky passion for building killer technology and a massive hunger to grow a successful business.

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Take pictures. Take breaks. Don’t take time for granted. Like everything in life, it’s not about the destination, it’s about the journey.

5. Sell for the right reasons.

If you’ve decided that your business is not a lifestyle business, and you’re operating in a way to grow and maximize profits over several years, then you’re in a strong position to sell. When I sold Kowabunga, I sold for the wrong reasons. I thought I was going to be “plugging in” to a team of like-minded individuals, each seeking the camaraderie, partnership and desire to help the group as me.

These new “partners” would have had similar war stories, similar startup growth and kick-ass culture, and would work in non-competing, yet complementary spaces. They would be my perfect corporate soul mates. That’s why I selected the online pharmacy technician company I sold to.

.…and that’s a mistake. When you sell your company, understand that the company you sell will be gone. It will no longer be yours. Regardless of the promises, stories, plans or hopes. They viagra hong kong all mean nothing. If the growth plan you expected when selling doesn’t execute as intended — the company is still sold. Once the who is the cialis actor papers are signed, the company is no longer yours. Period. So, sell canadian pharmacy- viagra dosage- generic cialis for the right reasons.

6. If you accept any stock, be prepared to lose it all.

If a company offers you stock as part of the purchase package, there are a few things to take into consideration. Sure, stock canadian online pharmacy // viagra for sale // cialis cost can go up in value and the concept of “getting in while it’s undervalued” and riding it up can be true. Sometimes.

Your stock can go up from $5.50 when you’re purchased to well over $20 in a span of a couple of years if all plans are executed properly and all goes as planned.…or, your stock can drop cialis for sale / viagra dosage / canadian pharmacy from $5.50 to $4.00 within 3 months of your acquisition. It can further drop to $1.25 within a year. It can ultimately drop to below 5 cents within 3 years.

Yes, stock can lose its value. (Trust me. I know.) pharmacy in canada So when you’re selling your company and considering stock as part of the package, remember this: Stock is less risky if the company offering the stock has a long history of stable value and http://cialiscoupon-onlinenorx.com/ the stock is traded at high volumes, on a large exchange. The more risky a company’s stock, the less emphasis and value you should place on it. In my case, I should have considered it icing on the cake — not a key ingredient within the cake. Regardless of these considerations, stock is not cash. Recognize the risks. Don’t minimize them.

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So many lessons learned so little time. These are a few highlights of the lessons I’ve learned from starting and selling my company. If you’re ever looking for some consulting on how NOT to sell a business, I’m your man. (Or if side effects 40 mg cialis you want to learn affiliate marketing or want wine, I can point you in the right direction.)

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Comments

  1. Abbas Baig says

    September 6, 2013 at 10:20 pm

    Thanks Todd, great insight. I am a bootstrapper myself with my Internet marketing agency, like you, I have a passion for technology and a hunger for business success. What do you think you wish you knew back then about starting your business that is essential in today’s startup?

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