Building a 7-Figure Online Business Portfolio In One Year

As the co-founder and CEO of Long Tail Ventures, Mike Mammone has transformed his experience in traditional business into a unique approach to digital asset acquisition and growth.

Starting at JPMorgan Chase in the retail sector, Mike was among the top 2% of sales representatives. However, limited upward mobility within the organization pushed him to explore entrepreneurial opportunities. Rather than starting from scratch, he chose to buy existing businesses, beginning with a cell phone store that he later sold for more than double his initial investment.

He and his partner have now acquired multiple businesses and built a 7-figure digital portfolio in a matter of months.

Making It Easy to Sell Online Businesses
Flippa provides owners and investors with the tools and expertise to sell.

The Path to Digital Acquisitions

Mike’s evolution continued through various ventures, including a successful Amazon business dealing with electronics and media products. His experience with physical retail and e-commerce led him to the realization that he wanted his next ventures to be completely online without geographical limitations or inventory constraints.

Eventually, he met Dan, a veteran in the online business space and the person who would become his partner, and this led to the formation of Long Tail Ventures.

Currently, Long Tail Ventures has focused on acquiring profitable online businesses in a couple main categories:

• Content sites monetized through display ads or affiliate commission that be grown through advertising
• Digital product platforms

Becoming a More Sophisticated Digital Acquirer

As a more experienced buyer of digital assets, Mike now focuses on thorough due diligence and relationship-building. Rather than focusing solely on price negotiations, he and Dan conduct comprehensive analyses of potential acquisitions, including:

• Detailed examination of expenses and revenue streams
• Verification of marketing costs and operational expenses
• Assessment of growth potential and optimization opportunities

Their Quackr Success Story

A prime example of their approach is the recent acquisition of Quackr, a temporary phone number service, a temporary phone number service, which was listed on Flippa for $1 million.

The deal showcases several key aspects of successful business acquisition:

1. Relationship-Building: Instead of pursuing a purely transactional approach, they invested time in building a relationship with the seller, even hosting him in Dubai.
2. Flexible Deal Structure: They adapted their acquisition strategy to keep the founder involved, recognizing his value to the business’s continued growth.
3. Growth Potential: The business showed impressive growth, with October showing a 400% increase from the previous year.

Long Tail Ventures’ Model

The company differentiates itself through its reinvestment strategy.

Rather than distributing profits immediately, they focus on compound growth by reinvesting in additional acquisitions. This approach, combined with their operational intensity and expertise, positions them to acquire businesses in the $500,000 to $3 million range.

For those interested in following Mike’s journey feel free to connect with him on LinkedIn.

Making It Easy to Sell Online Businesses
Flippa provides owners and investors with the tools and expertise to sell.