Quote:
Originally Posted by
tony bagadonuts
Love that pic.
Reasonable people can disagree J, and I certainly could be wrong. Shit, with all of the paid meds I've taken over the last week I probably am.
I was going to share my root canal hell week trip report but frankly I just didn't think it was that compelling. I can summarize with one word...
OUCH
Where I think you are wrong is saying that the website is only worth what someone would pay for it, that's simply not true. The site has value. It generates revenue. It has affiliate dollars that come in and it has advertising dollars to come in, it also has plenty of potential for future value that may or may not ever get put in to action. It also has an email list that is very large and is very specialized that has value.
I have no idea what the actual value is but I can speculate and I can say that I have recently / am in the process of buying a percentage of my own website and selling another percentage of my website (just general ownership shuffling) while I still own way more than what would be considered a controlling interest we still took a look at our average affiliate revenue, costs, contracted advertising revenue and future potential advertising revenue.
If you believe what Druff says (and I don't really have reason not to believe what he said) than he never had access to the financials of the business, for all we know they don't even exist. Also, if you believe what Todd says it took 5 weeks for the site to generate 1200 to pay him. So thats somewhere in the neighborhood of 12k in revenue a year I suppose. But that is with the bare minimum being done to bring in revenue. No ongoing Merge affiliation (other than past hero sign ups) No new advertisers coming on board, no retail improvements since those hats.
I would say Druff was underpaid by a minimum of 50% and probably even more than that, but Druff took this deal because of the stipulations in the contract. Druff was trading his quarter of the company for 1200 dollars
AND the terms of the contract, not just one of those things. I doubt Druff would have taken twice the money he did take with no contract at all. Steve's car analogy was pretty spot on in this regard. While it isn't as standard a number as a blue book value on a car it is still something can be figured out, and since Druff himself offered double the value to buy the site himself than we know what one buyer was willing to pay anyway.
Was Druff scammed? kind of... It probably wasn't premeditated and Micon has a history of going on some pretty questionable tilt rampages, but Druff has a history of overreacting to things and probably could have toned this all down a bit. A legal agreement was violated, thats not something you can just do because you feel like it. I don't think Bryan intentionally scammed Druff out of money but I think Bryan probably didn't think the whole thing through and was at a point in life where anything more than what he paid would have been to tough to come by so he just said fuck it and gave in to Druffs demands and now regrets it and he should probably pay something for that.