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Netpicks’ 7-figure exit in the day trading industry

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Website Closers Izach Porter and Brent Fisher chat with two serial entrepreneurs, Mark Soberman and Brian Short, who just sold their day trading strategy company Netpicks – which launched all the way back in 1996.

Today’s episode of Deal Closers is hosted by Jason Gillikin, brought to you by WebsiteClosers.com, and is produced by Earfluence.

From Fax Machines to Million-Dollar Launches: How NetPicks Evolved and Sold Successfully

In this episode recap of the Deal Closers podcast, brought to you by WebsiteClosers.com, host Jason Gillikin speaks with Mark Soberman and Brian Short, two serial entrepreneurs who recently sold a business they had founded way back in 1996. This episode offers invaluable insights for those looking to scale, improve profitability, and eventually sell an eCommerce business. As specialists at WebsiteClosers, Izach Porter and Brent Fisher explain, successfully selling a business is all about timing, finding the right buyer, and having a strong financial foundation.

Here, we’ll dive deeper into Mark Soberman’s journey building NetPicks, a trailblazer in online trading education, highlighting their key growth moments, innovative approaches, and the steps that made their business valuable to potential buyers.


1. The Early Days of NetPicks: Launching in the 90s

When Mark Soberman founded NetPicks in 1996, the internet was almost unrecognizable compared to today. Google didn’t exist, Netscape dominated web browsers, and most connections were dial-up. Although the internet was a new frontier, Mark saw its potential as a platform for business. Originally focused on sports handicapping, NetPicks quickly pivoted to investment training and trading tips, tapping into Mark’s experience in the market.

For sellers interested in selling their business, Mark’s story is a reminder that a strong market niche and a willingness to adapt are essential. The early days of NetPicks highlight the importance of understanding the broader landscape and adjusting business models to tap into high-demand markets. Mark’s unique experience in trading and investment gave NetPicks an edge that set it apart in a budding online industry.

Keyword Takeaway: Business sellers should focus on establishing a unique niche in their market, ensuring their business has a clearly differentiated offering that makes it appealing to buyers.


2. A Breakthrough Million-Dollar Launch with “Ultimate Trading Machine”

Every business has its turning points, and for NetPicks, this was the launch of its course, Ultimate Trading Machine. The launch format? A teleseminar—long before webinars became popular—where over 1,000 participants tuned in. This groundbreaking launch marked NetPicks’ first million-dollar success and set a new standard for the company.

Mark recalls the exhilaration he felt when he first heard hundreds of customers greeting each other in the teleseminar. This event validated the potential of their product and established NetPicks as a significant player in online trading education. For sellers considering their own business exit, this moment highlights the value of testing high-impact marketing strategies and building a scalable product or service that can drive revenue quickly.

Keyword Takeaway: Building scalable products and testing effective marketing approaches can significantly increase a company’s valuation and appeal to potential buyers.


3. Hiring from Within the Customer Base: Building a Dedicated Team

One of the most unusual strategies Mark adopted was hiring employees directly from his customer base. This approach led to the formation of a team of people who were genuinely invested in the product because they had initially joined NetPicks as loyal customers. Brian Short, who eventually became a key part of the team, began as a customer who saw the potential in NetPicks and proposed ideas to enhance the product offering. This strategy of customer-centric hiring brought on board people who understood the business inside and out, fostering long-term commitment and loyalty.

For business sellers, having a highly dedicated team is a major asset that can add value to the business. Buyers seek businesses where the team is knowledgeable, committed, and able to sustain operations during a transition. Mark’s approach of hiring from within not only built a dedicated team but also minimized turnover, making the business highly appealing to potential buyers.

Keyword Takeaway: For sellers, retaining and nurturing a knowledgeable team can add substantial value to a business and ease the transition for new ownership.


4. Adapting to Change: A Key to Staying Relevant

To remain successful in a rapidly changing market, Mark continuously adapted NetPicks’ business model. In its early years, NetPicks relied on organic search traffic to build its customer base. Mark recalls how early SEO was straightforward, allowing them to rank easily in search engines like Yahoo and Google. As search engine algorithms evolved, so did their approach to customer acquisition. NetPicks diversified its strategies to include pay-per-click (PPC) advertising and affiliate marketing, making sure they weren’t solely reliant on organic traffic.

For business sellers, adapting to new trends and technologies is essential to building a resilient company. Potential buyers look for businesses that demonstrate versatility, as this quality indicates stability even in fluctuating market conditions. Mark’s story is a powerful example of how adapting marketing approaches over time, from early SEO tactics to PPC and affiliate marketing, can ensure a business stays competitive and valuable.

Keyword Takeaway: Regularly updating marketing strategies and adopting new technologies can make a business more resilient and attractive to buyers.


5. Expanding the Product Offering: From Tips to Full Courses

NetPicks’ evolution from simple trading picks to a comprehensive trading education platform was key to its long-term growth. Originally, NetPicks offered trading tips to subscribers, delivered by fax. However, in the early 2000s, Mark realized that customers wanted more in-depth training, and the company launched its first full trading course, Ultimate Trading Machine. The course was priced at $997 and was delivered in a physical format, which was a common expectation at the time.

As online learning trends shifted, NetPicks adapted by moving all courses online and developing shorter, more accessible content. The company also began offering “done-for-you” alerts, catering to customers who valued convenience. This transformation of NetPicks into a hybrid educational service shows the importance of a diversified product range, appealing to both new and loyal customers and making the business more attractive to prospective buyers.

Keyword Takeaway: A diversified product range, catering to various customer needs, adds depth to a business model and increases buyer appeal.


6. Selling the Business: Finding the Right Buyer with WebsiteClosers

As Mark and Brian decided it was time to sell, they turned to WebsiteClosers.com to find a buyer with experience in their niche. Selling a specialized business like NetPicks required finding a buyer who understood trading and was capable of maintaining the customer relationships and technical knowledge necessary to succeed. Through WebsiteClosers, Mark found buyers who shared their values and vision, ensuring a smoother transition.

WebsiteClosers’ approach of thoroughly understanding a business and targeting the right buyer is critical for sellers who want a successful exit. Mark and Brian’s experience highlights the importance of working with a business brokerage that can pinpoint niche buyers and assist with transaction complexities. This focus on finding the right buyer allowed them to negotiate favorable terms, including consulting roles to facilitate a seamless transition.

Keyword Takeaway: When selling a business, working with a specialized broker can help identify the right buyer and optimize the deal structure for both immediate and long-term value.


7. Structuring the Deal for Long-Term Success

For Mark and Brian, negotiating the deal terms was crucial. They agreed on a mix of upfront cash and financing, with structured payouts over several years. Additionally, they negotiated consulting roles that would allow them to stay involved with NetPicks while exploring other ventures. This arrangement gave the buyers confidence in a smooth transition and allowed Mark and Brian a stable path forward as they phased out of daily operations.

Sellers looking to exit should consider structuring deals with a balance of immediate returns and long-term payouts. Consulting agreements can also be advantageous, as they ensure continuity in the business while giving sellers the flexibility to explore new opportunities. By maintaining involvement, sellers can offer value to buyers and ensure the business continues to thrive, enhancing the overall success of the transaction.

Keyword Takeaway: For sellers, structuring a deal with a mix of cash, financing, and consulting roles can create a win-win situation, offering financial stability and flexibility for future endeavors.


Conclusion: Key Takeaways for Sellers Inspired by the NetPicks Journey

Mark Soberman and Brian Short’s journey with NetPicks offers sellers valuable insights into building and selling a successful business. Key strategies that contributed to NetPicks’ success include:

  • Adapting to Market Changes: Staying relevant through updated marketing and business models.
  • Building a Customer-Centric Team: Hiring employees who understand and believe in the product.
  • Expanding Product Offerings: Diversifying to meet evolving customer needs.
  • Choosing the Right Brokerage Partner: Working with a broker like WebsiteClosers to find specialized buyers.
  • Structuring Deals with Flexibility: Balancing upfront cash with long-term payouts and consulting roles.

Selling a business requires careful planning, adaptability, and the right team. With the guidance of a specialized brokerage like WebsiteClosers, sellers can maximize their business’s value and secure a rewarding exit. For those interested in learning more, visit WebsiteClosers.com to explore selling opportunities and gain insights from seasoned experts in business brokerage.

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