I’ve just watched Dragon’s Den, Series 6, episode 2 and my jaw dropped. Why? More on that later, but for now here is how to easily impress the Dragon’s and gain some serious funding.
1. Tell them the turnover (not profit) of the biggest website that currently occupies the same niche as yourself. Obviously the bigger the better.
2.“Impress” them with some slightly average search engine results for a couple of key search terms. Judging by this weeks’ episode, position 9 and position 12 will get you over a quarter of million pounds investment.
That’s it!
On last night’s episode a website did exactly this. The site concerned is DiamondGeezer.com who last year had a turnover of £1.6 million but a profit of only £3,243.
However because the guy who was pitching said that the biggest site in this sector (BlueNile.com) had an annual turnover of $330 million - and that DiamondGeezer.com held position 12 on Google for “diamond” and position 9 for “diamond engagement ring” they actually made him an offer.
To top it all the offer was the highest ever in Dragon’s Den, it was £255,000 for 40% of the business. In fact so keen were the Dragons to invest that 3 of them (Theo, Peter and James) all wanted to be part of the investment. However the owner of the company - can you believe this - actually turned them down!! Apparently he thought that £255k for a 40% investment of his company, which made £3,243 profit last year remember, was actually too high!
I honestly can’t decide who made the worst decisions in tonight’s episode. Was it the Dragon’s for wanting to invest such a large amount of cash into such a small business, with slightly-above-average search engine rankings? Or was it the owner of the business who turned them down?
We all know that last year Theo made a similar mistake and blew £200k on another online business, but you would think he would have learned by now wouldn’t you? Obviously not.
Now I know a lot of affiliates who have much better rankings (positions 1 to 5 for example) for sites in much bigger sectors than online jewellery. The majority of which would probably call it a day if they didn’t make £3,243 profit in a week or less, never mind a year. So it makes you think what kind of funding we could all secure if we ever entered the Den with a real web business that was making good money, in a profitable sector and had good search engine results? Anyone up for it?
If you haven’t seen the pitch then please click here to watch it. And just watch how the guy manages to get James, Theo and Peter to part with their money by telling them about a few average serps results. Amazing.
What I’m listening to right now: Joe – “God’s Work”
Post from: Affiliate Marketing Blog Here.org.uk
How to get funding from the Dragons for your website (because they don’t understand the Internet - as proven by DiamondGeezer.com)
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Original post by Kieron