Why I turned down $40k for my directory

In September 2024, I decided to list the first directory website I ever built for sale.

Some stats at the time I tried to sell it:

• Monetized for 15 months
• $20.5k TTM revenue
• $20.15k TTM net profit
• 60k/monthly average visitors

As dumb as it sounds, I listed it for sale because of a tweet.

It was from Greg Isenberg that said “selling a tiny profitable business is underrated” or something along those lines.

For some reason, this tweet hit deep. I wanted to experience the feeling of selling my first business.

I had a general idea of what my directory was worth, but needed to get a real pulse on it’s market value.

Who would want to buy a boring ol’ website directory anyways?

Within a few days, I had a dozen meetings booked with potential buyers.

Within 30 days, I received three offers for $40k, a $48k offer (part cash, part seller financing), and a bunch of low ball offers.

As exciting as this felt, I was hesitant to go forward.

Maybe if you’re reading this, it sounds like an obvious choice. Take the money, rebuild another directory website, rinse and repeat.

But the fundamental reason I started building directory websites was always to gain full control of my time ASAP.

It’s been a goal of mine for years now.

Too many conversations with friends, family and other entrepreneur buddies showed me that how I made money was more important than how much I made.

Plus, I have some horrible memories from being severely burnt out from a footwear company I started and ran for 5 years. It was bad enough to close down shop despite it earning $20k/monthly revenue. But that’s for a story for another day.

The reality is, there aren’t many business models in the world that allow for full time freedom.

I needed to start a business that was:

• Low cost to start
• Fully remote
• Scalable to a global audience
• Had no ceiling to earning potential
• Offered high net margins

(btw I still ask myself these questions whenever a business opportunity arises)

I looked everywhere.

And my search ultimately led me to two options: Build a SaaS or build a website.

I’m not a coder, so a SaaS was out of the question.

By late October 2024, I decided to keep my directory site and removed my listing.

For me, the peace of mind from earning $1500-$2000 passively each month was more important to me than a $40k lump sum.

Glad I did too because that first directory site continues to grow 18 months later!

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After all, 90% of the people wanting to buy my website were people who worked in corporate for 20 years and felt like it was time to take their foot off the gas. They wanted to spend more time with their kids, traveling, etc.

Another signal for me to keep stacking the MRR and optimize for quality of life.

I guess this is all to say:

I don’t know your reason for building a website directory. But I’m glad you’re here.

There’s so many benefits to creating a useful web asset that goes beyond owning a sellable asset + passive income.

The skills you learn, the opportunities that come from being known as the “SEO guy”…these experiences are the most fulfilling to me personally.

If you’re building a directory, I’m excited to hear what you build in the coming months!

Best,

Frey

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