Hey, everybody, Roland Frasier here.
And I am excited to have
you back for session three.
This is the final session
in our mini class on Zaida,
which is $0 traffic and how
you can acquire Z dot assets.
Right? So in this women session three,
we're going to be talking about analysis,
how you run your analysis, and
also what's the deal stack.
How do you put together a deal
to acquire one of these Z dot
assets? And there's a few
tools that we use to do this.
They are combined into an Excel
spreadsheet, which you can download here.
And it is called the z.tax sheets.
That is the traffic asset cluster,
meaning that we're cluster these together
in seven different categories that I
explained to you in the last session.
And now we're going to actually do
some analysis on them and see how do we
actually buy these things for
$0 out of pocket? And, um,
if you remember taking you
back to the traffic triad,
this is where we were talking about
how are we getting an acceptable target
ROAS return on ad spend and an
acceptable target CAC customer
acquisition cost. Cause
if we can't do that,
even if we have all of
the available traffic,
we need that's in the top circle
and we have a consistent budget,
but we can't do it in
a target, ROAS and cat,
then we can't profit.
And if we can't profit,
it's pretty hard to
stay in business. Okay.
So that's what we're
gonna talk about today.
We're going to talk
about ROI analysis first.
So our own ROI analysis is
done using the tab on the Excel
spreadsheet.
That is Z dot asset
acquisition worksheet. Okay.
The Zita asset acquisition
analysis worksheet.
Now what you'll see here is
that we've broken out the Z dot
assets into all the different categories
so that you can put what are the
details for each of the assets that
you're thinking about acquiring,
and then you can run some analysis.
So here are some sample numbers,
some sample data for you
on these different assets.
You can see each of the
categories is separated by color.
So social is a green color
groups are a reddish color.
SEO is a tannish color.
And here we start in this
column with how much traffic,
how much traffic is the asset,
getting how much traffic is the
asset getting every single month.
And then what's the conversion rate.
What's the conversion rate of that traffic
either for the company that owns it
currently,
or if you have an opportunity to test
what's the conversion rate for you,
or if you don't know any
of that, then you can say,
this is what I estimate
the conversion rate to be,
because that's what it's been
across. These types of assets.
When I have traffic from them before,
it's fair to think then that if you buy
a similar asset that you've been renting
or you buy the exact asset you've
been renting once you own it,
conversion rate is going to be about the
same next we want to know what is the
average order value?
What is the average order value for
your product right on that asset.
If you know, on here, if it's a
social Facebook page, what is it?
The average order value.
When you are able to sell someone and
have a conversion from the Facebook page,
if you don't know that, then
just use your overall AOV,
your overall average order value.
Then you want to know
what's the average LCB.
What's the average
lifetime customer value.
What is the average customer worth
to you over the lifetime of that
customer? And we just use one year here.
If you've got customers
that stay for years,
it might be significantly higher
here. We're just using $600,
which is a one year average
lifetime customer value for
this particular product.
We then want to know how many actual
buyers are going to come from that.
Now the sheet will
calculate all of this, uh,
information one time. So you
put in the basic numbers.
So all you have to do is enter in a few
numbers and the sheet will calculate the
rest. Like the monthly buyers. It'll
also calculate the revenue per month,
the revenue per year. And you need to say,
how much does it cost to own this asset?
Maybe you have to employ someone that's
dedicated to this asset. In this case,
I was talking about the Facebook page.
How much does it cost you to have someone
manage that Facebook page for you?
Right? And, and yeah, maybe
create content for you.
So we have different costs
in here for different assets.
And then I'm going over
here on the Facebook page,
a that's the 12 month costs.
And then we say, what's the net profit.
That's going to be by subtracting
the cost from the revenue.
And then we'll know the net profit.
We can calculate the row as with simple
division and they'll know what's ours,
Z dot CAC, or Z dot customer
acquisition cost. What would we,
what would it cost us for
each customer when we own the
asset? Okay. Now in the Facebook
page example, it costs us,
our Z dot costs is $8
because we own it now,
right before our CAC was
$120.
So we're going to decrease our
customer acquisition cost by
$112 in that case, $112. That's huge,
right?
So that's the benefit of owning
these assets as opposed to
running them. And you can see the, the
annual savings. There are $44,667 a year.
You'll just run this analysis,
using the Z dot asset acquisition
analysis worksheet here
for each of the categories
and types and specific assets.
That's that you're thinking
of acquiring. Okay.
So that's the first bit of
analysis that we're going to do.
The next thing is going to be,
how can we acquire these things
for $0 out of that's when it gets
really exciting. And that's what we
do. You have the deal stack for now,
here is the second part of the
sheet that you have that you can
download.
And this is the Z dot traffic asset
position funding analyzer, right?
So here it'll talk about how
much are they asking for the app?
You said that they're going to sell,
what are the sales that
it has on an annual basis.
And then you'll put in what is the
profit that this is generating for the
current owner of the asset? Okay.
The program will then calculate
a multiple, a target, multiple,
and a Delta for you so that you can
determine exactly is this a good deal or
not? We typically, as I mentioned
in one of the earlier sessions,
like to pay one times profit
for one of these Z dot assets.
So if they're asking 1.6, seven, but
we like to pay one, that's our target,
then they're over-indexed
by 67%. Okay. Now,
if you know the CAC and the AOV,
you can put that in as well.
We then start to say, will this person
be willing to finance this asset for us?
Seller financing is one of the key things
that we use when we're acquiring Z dot
assets to not have to come out of pocket.
Even if you're paying money for it,
if you can pay money over time, then
you let the asset purchase itself.
The asset page for its own
acquisition. This is really,
really critical. Okay. Now,
another thing that you can do,
I mentioned in one of the earlier sessions
as well is you can ask the seller if
they would be willing to do an earnout,
if a seller wants more than you're
willing to pay, then you can say, well,
I can't, Hey that right now,
based on the current performance.
But if the asset performs at the level
that you think it's going to in the
future,
we can agree on a formula that will
get you the extra money that you want.
And that's called an
earnout again, that's money.
You don't have to pay now
seller financing. You don't
have to pay that money.
Now, earn out. You don't
have to pay that money. Yeah.
So the seller might finance a certain
percentage of the deal that goes into the
seller financing box. You can see,
see it's green because it's going to
carry over to another calculation. We do.
Will the seller earn out 10% in this
case, we're assuming they'll do.
And for a $5,000 purchase, that'd be $500.
What are they going to do with the money?
And what does the seller ultimately want?
You always want to ask those two questions
because then you'll know what you
need to make happen for the
seller to do the deal. Okay.
Then do they have any
intellectual property that is
defensible like a copyright
trademark, et cetera, in the asset.
That's just for your information
as you do the due diligence,
is there any recurring revenue, if
there is, is there any churn, et cetera?
Like, are you buying a stream of profits?
And that's usually more when
you're buying a company,
but if you're buying an
asset, usually there's no,
there's not like a lot of profits
in it currently. You know,
how many active leads do they have and
how many active customers are coming from
each month goes into the other
calculation financials. If they have any,
most of them don't with these assets and
then seller negotiation items, right?
So what's the seller's asking
price. And the multiple. Now these,
this section is pulled from the
data that you enter over here.
And it's going to tell us before
we enter into an agreement,
like a preliminary agreement, which
we call an LOI or a letter of intent,
we want to know what's
the seller's asking price.
What's our target fair
market value. That was a one.
And which is higher than we go
with the lower of those two,
because that's what we're willing to pay.
If they're not willing to sell it for
that, we might not be willing to buy.
Then you might negotiate an
additional discount. Then we say,
are you requiring a hundred
percent of the asset?
Because one of the ways to afford these
Z dot assets is if they're expensive is
just, don't buy a hundred percent by
60%, right? You'll still be saving money.
Then you'll calculate your net
purchase price. Then we say,
are we going to, how are
we going to value this?
If we have third parties come into the
deal because third-party funding is
frequently.
One of the things that we use as we
acquire these assets for no money out of
pocket.
So what's the valuation. Typically
the valuation is going to.
It'd be the greater of the
sellers, ask for fair market value.
And then we'll negotiate that with
the seller, with the investors,
if we need to, there's no
alternative valuation here.
So we would enter that valuation
if there was one, but there's not.
So just brings the final,
an investor and integrator that's people
who are going to run the asset value
down to here. Now we go to third
party sources of financing.
So can we get some third
party to help us invest here?
And integrators are people who
are going to actually do the work.
And investors are people who are
passive, who aren't going to do the work.
They're just hoping to have an increase
in value as you do things with this
asset. So it will calculate
based on the data that you enter,
what percentage are you willing
to sell? What would that value be?
How much money will come from that?
And then we have a pre-closing and
post-closing deal stack analysis,
where runs through the financing based
on all the data that you've entered
and says,
do we have enough money to
acquire this asset with $0 out of
pocket or not? And in the
pre-closing deal stack,
we have the purchase price, less
any investments from integrators,
the people that are going to
come and work in the business.
Maybe we sell sponsorships.
I mentioned that early on in
the case studies in session one.
So if we sell sponsorships,
that number gets deducted here.
If we have cash from investors,
that number gets deducted.
If we have seller financing or a
seller earn-out, that gets deducted.
And then that tells us how much
funding we need. Well here,
where we're buying this asset for 3000
and we've got all this extra funding.
So we're actually $5,700 overfunded.
Meaning if we did all the
things that are listed here,
we could put $5,700 in our pocket and
own a hundred percent of this asset. Now,
then we go down and say, are we
going to assume any debt? Well,
over here we see there is existing
debt of a thousand dollars
on this asset. And we are going
to assume that not personally,
cause we'll buy this through a company,
but we will take that off
of the purchase price.
Now we're overfunded funded by $6,700.
So we could actually put
it's in parentheses means
we can put it in our pocket.
We can own this asset with a
hundred percent and put the
money in our pocket. Cause I'm not taking
any money from investors here, right?
If I needed more money, I could
take money from investors,
but that's why the sheet does
all that calculus for you.
Now that's things that we
do before we own the asset.
There's also stuff we can do.
After we have title to the asset,
we can go to a private
land vendor or a government
entity in the United
States. It might be the SBA,
the small business administration.
I can get a loan at a
ridiculously favorable rate
where we could go to a private
or commercial lender. Okay. And
here we didn't need any of that.
So that's zero, zero.
So we're still 6,700 to the good
we say, could we do revenue basis?
Just financing.
Could we do financing in the example in
session one that I showed you for one of
the Facebook groups you saw,
we used revenue based financing by
telling the seller that we would give them
the first $70,000 that came in. So if
we were doing a deal with like that,
that would go in this section
again, we're overfunded here.
So we don't have to showing you all
the different ways that you can acquire
these Z dot assets for zero out of pocket.
Then you might offer
the seller consultant.
That's another option that you have
as well. Well, in this case, again,
we didn't need to. So there's none.
And you might have an earn in as
well where you say, Hey, I am,
I don't have the money for
everything that I want to do here,
but I'm going to run this asset or
I'm going to manage it or I'm going to
monetize it. And in for that, I want
a percentage. That would be an again,
we didn't need it.
So we come all the way down to the bottom
line and you see that we've got $6,700
that we not only have we
get to put in our pocket,
we not only get to acquire the
asset for no money out of pocket.
We also get to put 16, $700 in
our pocket. And I know, right,
I ran through this fast
for you, but it's really,
you can take the time
and watch this again.
You can take the samples sheet that you're
able to download and run through this
as well. And we go through
the complete system, uh,
in our, in our full training.
If that's something that,
that might be a fit for you
now, last but not least,
we have the Z dot asset
funding planner, right?
And this is a series of
calculations and drop downs to
look at a particular asset.
So you might pick one of the seven
categories here in this case,
it's social and you would
click on the social traffic
assets. It would drop down
all of the different assets.
Maybe we pick Facebook page, the
cost to acquire you enter here.
And let's say it was 12,500. And
how are you going to fund it?
And all of the different funding
options are here in dropdown. Yeah.
Menus that you can pull down and
then you just allocate. Yeah.
The amount that you'll be able to
get from each one, and it counts,
counts down and continually
calculates and recalculates your cash
needed as you go through this process.
So these different works
sheets on this one Excel file.
We'll give you everything that
you need to be able to calculate.
Can you afford how much is the benefit of,
and how will you acquire for $0
out of pocket each of the different
Z dot assets, right? So your
action items are your actions,
items from this three sessions,
mini-class are number one,
execute your traffic gap, audit,
find those honey holes of
traffic that you're not using.
And then identify the things that are
contributing the most and think about
those are probably the
most it's expensive assets.
Those are probably the most expensive
sources of traffic that you've got.
Cause they're what you're using right now.
What if you just went out and bought them?
What if you just went out
and bought this, right?
The second thing is target your
Z dot acquisition assets. Okay.
That's the second, second step.
The third step prioritize that based
on ROAS return on ad spend, right?
And CAC analysis, you
can do that using the,
the traffic analysis worksheet
and then craft your deal stack
to be able to fund these
assets for $0 out of pocket.
Now we have three options at this point,
we're at the end of the mini class.
Okay. I've learned a
lot of great stuff. Now,
you know how to take control
of your traffic. You know,
that it's better to own
than to rent. You know,
that you can acquire all these different
traffic assets across these seven
categories. You know that you
can do it for $0 out of pocket.
And you've got some tools to
get you started with doing that.
So you can do it nothing right now, which
would be horrible waste of your time.
You've taken the time to
invest in yourself, watch this.
So you've got to take
action now, right now,
you could also do this yourself,
right? You can acquire these yourself.
I've given you all of the information
and all of the tools that you need to do
it granted it's high level,
but you do have the specific assets in
the tools that I've given you to be able
to do this for yourself,
or you could do it with us.
You could let us help you.
And if you'd like to do that,
then we would love to do that.
And not only do we teach you how
to acquire $0 traffic assets,
that's just one,
one category of assets that
we teach you how to acquire.
We have a complete program that tells
you how to acquire a whole businesses and
also to do it for $0 out of pocket.
And ultimately there's 216
different strategies for
doing that. If you'd like
for us to help you with that,
then you can click the button below and
find out a little bit more information
on that as well.
Thank you for spending your time with
us and investing this time to learn and
improve yourself and your
business. I'm Roland Frasier.
And this was Z dot traffic. Thank you.
