Hey You, @VIP from CMSEO,
I’m a big dumb procrastinator
who put his speech off to the last
minute, so these slides you see
here are not the final product. If
you want the final ones, go to
https://Smash.vc/CMSEO
My main goal today:
Help you add zeros to your SEO
projects by applying common
investment principles
What we’re NOT going to talk about:
1) Hard investment
rules to follow
2) A “single method” to
achieve wealth
3) Crypto investment
Instead, #1 Important investor principles
and how to apply them to your
let’s SEO projects
talk #2 Examples of how I’ve applied
them on my own projects
about #3 Resources to help you take
your knowledge to the next level
How did we get here?
The real reason 1. $47k
they let me up 2. $100k
here: 3. $110k
4. $220k
exits 5. $975k
6. $1MM
7. $12.8MM
But seriously...how?
(stair-stepping + luck + applying investment principles)
POLL TIME
ANGEL INVESTING
What is A N G E L I N V E S T I N G ?
1. In summary: wealthy people write big checks into early
stage startups
2. Generally high risk/high reward tech startups
3. If the company succeeds, it will be worth many MANY
millions (or billions) of $$$
Typical angel investments
have a very large upside.
Probs NOPE
Probs YES
Typical investment portfolio (stocks, bonds,
etc) = focus on minimizing losses
vs.
Angel portfolio theory = focus on capturing
gains
Angel Investing
Principle #1
Results are ALL a power-law.
Let’s look at some of my portfolio...
Ok Susan, but what does this have to do
with my SEO business?
AMZ Affiliate Sites, I See You
Let’s be real.
It’s hard to go from
BestRobotVacuumCleanerHQ.net to a
7-8-figure brand.
How you can apply this:
Build the potential big winners
Start by simply creating something that can be a
brand, or be steered into something bigger.
How you can apply this:
Build the potential big winners
A few examples:
● Review site -> sell your own products
● Build a self-growing community around an existing
project
● Create something that you could build software
around
How you can apply this:
Expect power laws in life
If you do it right, you only have to get rich once.
The more optionality you pack into your projects the more likely
this will happen with one of them.
POP QUIZ
Genius OR Fancy SEO
Brand? Site?
POP QUIZ
Fa
i u s OR nc
Gen d? Sit
yS
B ran e? EO
POP QUIZ
Fa
i u s nc
Gen d? Sit
yS
B ran e? EO
POP QUIZ
Fa
i u s nc
n
Ge d? yS
Sit
Bra n e? EO
POP QUIZ
Fa
nc
i us yS
Gen d? Sit
e? EO
ra n
B
Ask Yourself This:
1. Do your projects have a big enough potential upside to
warrant your time and money?
2. If you’re working hard on something, just think about it’s
absolute best case scenario. Could you afford a comfortable
living? An enjoyable business for the long-haul? Could you
maybe even retire on that?
Me:
Here’s another Angel Investing framework to
find the winners
The Jason Calacanis Method:
- Start by writing a tiny check, say 1% of the
available cash you have to invest, to 20
companies. Evaluate how they do, see if
they get traction, etc.
- Invest a much bigger amount in the
winners in their next rounds of funding
How you can apply this:
Instead of trying hard to “not lose
money” with a project, focus on
finding the winners in your portfolio
of websites. Then double-down on the
winners.
Recommended Reads
In conclusion
-> Angel investing is not for everyone, but the principles
can be useful to understand the power laws of your
projects and spend your time on those that have a big
enough upside.
-> Potential upside doesn’t necessarily have to be millions
if that’s not you. You define your upsides.
Who were the “rich kids” when you were
in school? What kind of businesses did
their families own?
But why?
“Compound interest is
the 8th wonder of the
world.”
- Einstein
VALUE INVESTING
VALUE INVESTING
Boiled down to its most simple format:
Buying $1 for 75¢
(This method is very much about avoiding the losers, unlike angel investing
which is about finding the winners.)
Value Investing
Principle #1
Every business has an
“intrinsic value”
But what the hell does “intrinsic value”
even mean?
It’s essentially a way of calculating as best
you can all of the known variables of a
company to come up with what the
company is “really worth”.
So what would be the intrinsic value
of, say, Apple?
But why even use intrinsic value?
Examples of things
without a intrinsic value:
Value Investing
Principle #2
The Too Hard Pile
Math Quiz Tiiime
Math Problem #1
How do you value the stock of Uber?
● Loses billions of dollars a
quarter
● but yet has millions of daily
riders paying it.
● Surely the company has
some value but how much?
● Surely it will make money
one day, but how much?
Math Problem #2
Bob has a business where he makes new
art-related info products, and then
“launches them” with big affiliate
promotions and paid ad campaigns
generating 6-figures in profit most
launches. Each product dries up after a
few months and he has to rethink a new
one.
How much would you buy this business for?
Math Problem #3 (with a different angle this time)
A tech bro that loves SEO and startups and
videogames and sushi buys a business in the
mommy-blogger space. It’s a robust site with
a loyal following, talking about natural
cosmetics, periods and vegetarian food.
How hard will this be to run?
The answer to all these math
problems?
I have no idea.
The answer to all these math
problems?
I have no idea.
How you can apply this principle:
Almost every opportunity should
always go into the too hard pile.
If you don’t have enough information to make
a fully educated decision, avoid it. Too hard.
Wait for the obvious wins.
“What’s nice about investing is you
don’t have to swing at pitches. You can
watch pitches come in one inch above or
one inch below your navel and you don’t
have to swing. No umpire is going to call
you out. You can wait for the perfect
pitch you want.”
- Warren Buffett
Value Investing
Principle #3
Always have a margin of
safety
Value Investing
Principle #4
Your circle of competence
Value Investing
Principle #5
Focus on quality instead of just
cheap
Say Hi
● Smash.vc - Where I partner with and buy into small businesses
● @Travis_Jamison on the Twitter
● Fb.com/travisssss
● Angel.co/travisjamison to follow my angel deals
