#1 Mistake When Selling Your Amazon KDP Business - Don't Lose Money

About this video

Sean, who says he recently sold his own KDP business, explains timing a sale for maximum valuation. He says businesses are valued on their 12 months average profit, so selling right after quarter four looks logical because October, November, and December sales are often highest. The problem, he says, is that everyone lists then, flooding Empire Flippers in the first quarter, giving buyers more choice, making premium pricing harder, and slowing sales. He warns that a valuation is updated monthly: using a 200,000 dollar valuation as an example, if January and February profits are weak, the valuation will be recalculated downward the longer the business sits unsold. Since listing and selling takes an average of one to two months, he advises starting the process early so the listing is live in December and ideally sells before January numbers hit. He says sellers can back out on Empire Flippers at any time before accepting an offer, with no penalties or fees. He also claims multiples have risen — a year ago 28x was normal and now people are getting 35 to 45x — and notes sellers must sign a non-compete for their niche but can publish again in a different niche.

Key takeaways

• KDP businesses are valued on 12 months average profit, so strong quarter four numbers lift the valuation
• Listing right after quarter four means competing with a flood of other sellers on Empire Flippers
• Valuations update monthly, so weak January and February profits can pull a high valuation down
• Start the listing process one to two months early so you can ideally sell before January numbers are factored in
• You can back out of an Empire Flippers listing before accepting an offer, and a non-compete only covers your sold niche

Episode details: published November 15, 2021 · 9:40 long. Summary written by Self Growth Videos from the episode itself. Business results and any income figures mentioned are Sean Dollwet’s own claims, shared for education — they are not typical or guaranteed.

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