Amazon Prime Price Increase

Amazon PrimeFor the first time since 2014,  Amazon is raising the price of their popular Prime membership from $99 to $119. The change goes into effect on May 11th for new subscribers, and renewing members will see the new price beginning June 16th, 2018. Earlier this year, the company announced similar changes to their monthly subscribers, those who do not wish to commit to an annual subscription, moving the price from $10.99 to $12.99 per month.

While this sounds like a big increase, we believe Prime still represents an unbelievable bargain for the online shopper. Why? Just look at what’s included with Amazon Prime:

  • Prime Video: Unlimited access to tens of thousands of movies and TV shows
  • Prime Music: More than two million songs and thousands of playlists and stations
  • Prime Photos: Unlimited photo storage to preserve family memories
  • Prime Reading: A rotating selection of free e-books and magazines
  • Audible Channels for Prime: Premium original podcasts, audio series and audiobooks exclusively from Audible
  • Kindle First: A free pre-release e-book each month
  • Twitch Prime: In-game loot on Twitch and 20 percent off pre-release digital games
  • Early Access: Exclusive early access to select Lightning Deals
  • Savings: Discounts on select products including 20 percent off diaper subscriptions
  • Prime FREE Same-Day Delivery: One million products, order by noon and get them today in eligible zip codes
  • Prime Now: Free two-hour delivery on tens of thousands of items in eligible zip codes

That’s a lot for your $119 annually. Less than a Netflix subscription plus a lot more! Those receiving Medicaid or EBT benefits will continue to have access to Amazon Prime for just $5.99 a month.

Sign up prior to June 16th and avoid the price hike!

 

 

Amazon Is Looking for Larger Whole Foods Stores

Amazon

In a unique blending of the online with brick and mortar, Amazon is looking for larger Whole Foods stores to support their delivery plans. According to Bloomberg, their objectives include wider aisles that could accommodate more traditional Amazon purchases as well as possibly converting some outside parking space to stalls that could be used by their delivery partners for loading. Read more at bloomberg.com…

The Retirement Account Advantage

provident trust logo

People often ask about investing in websites or even other “alternative” investments through their retirement accounts.  Many of us may not have a lot of free cash outside such accounts, but we would like to take advantage of the higher returns that websites and other alternatives can offer.

It’s actually an easy process to set up a “self directed” retirement account.  You may have an account today that is self directed in the sense that you can choose what stocks, mutual funds, ETFs, etc. to add to your portfolio or even buy and sell at will.  All the major brokerages, such as Ameritrade, Fidelity, Charles Schwab and the others offer such accounts. But they are limited to traded securities, and not alternative investments.

However, there are companies who specialise in allowing the investor much more freedom regarding where to place their retirement savings.  Whether it is websites, property or even precious metals, these companies can set up accounts and manage them for you – but, there is a process that must be followed to be sure you don’t violate the intricate rules of the IRS and invalidate your retirement investment!

The rules are beyond the scope of this article, but we have tried a couple of these companies, and we can unreservedly recommend one of them: Provident Trust.  The first company we used (which will go un-named) was very difficult to work with and required the use of very complex forms.  They also charged very high fees – so much, in fact, that by the time we got our profitable investment back in our hands, we had lost all the profits to their fees!  Big mistake, and not going there again; but this time we tried Provident, and they are a dream to work with.

Their forms are simple, and their people are easy to talk to.  We sent a sample contract from our website supplier, and they accepted it right away, funding the deal in a matter of days instead of weeks.

We’re such happy customers that they have set us up a portal where we can access all the forms you need to get started.  Just get in touch, and let us know what kind of account you have, and we’ll get a form out to you so you can get started:

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KKR Acquiring WebMD for $2.8bn

WebMD Logo

Private equity giant KKR announced plans this morning to buy internet health information giant WebMD Holdings for $2.8 billion, a revenue multiple turning heads in the industry and proving once again the increasing value of revenue generating websites.

The company has just announced preliminary financial results for the three months ended June 30, 2017 showing that second quarter revenue is expected to be approximately $176 million, an increase of approximately 5% from the prior year period. Prior financial guidance for the quarter was $170 million to $173 million. First quarter revenue was $154.1 million, bringing the projected total results for the first half of the year to a projected $330 million, meaning that the deal should be valued at multiple of between 4 to 5 times revenue.

We have always held WebMD as an example of a great revenue generating website. Today’s announcement is just another strong indication of the increasing value of such sites as the market begins to better understand this new asset class.

Read more about the purchase…

 

 

 

Amazon buying Whole Foods

Amazon Whole Foods

In yet another indication of the growing power of online over bricks and mortar, it was announced today that Amazon is buying buying Whole Foods in a deal worth about $13.7 billion. Only a month ago, problems started becoming evident that resulted in a board shake-up and the implementation of cost cutting measures due to falling sales.

What to expect next? Maybe ordering your groceries through Alexa and having them delivered by drone? Only time will tell, but the move provides further evidence of the tremendous shift from traditional sales channels to online.

The Story of IAC/InterActiveCorp (IAC)

IAC-InterActiveCorp logo

Owning revenue generating websites is not just a good investment idea – it’s a great idea! Just ask investors in IAC/InterActiveCorp (IAC) who have seen a dramatic increase in value after their recent purchase of Angie’s List.  IAC is a big boy’s model of what we do.  They are investing in revenue generating websites – lots of them, and they are doing extremely well.

In terms of performance, as of this writing the stock is up almost 60% since the start of 2017. During the past six months, IAC/InterActiveCorp (:IAC)’s stock has been 53.94% and 90.32% for the last 12 months. Read more details on the FLBC News website…

 

Buffalo Milk for Alternative Income?

a momma buffalo and a baby buffaloAccording to the website, NZ Farmer, milking buffalo can be a great source of alternative income!  “We have a few people interested…”, the website stated, going on to say, “Prospects for buffalo milk dairy production had never been more positive…”.

We don’t know about you, but the idea of milking buffalo doesn’t seem as appealing to us as owning a revenue generating website. After all, you have to feed the buffalo and be careful that it doesn’t run over you in the process!  But you simply sit back and collect monthly returns from your websites – and, they don’t smell!

So do yourself a favor and buy a revenue generating website.  You will probably enjoy it a lot more than milking a buffalo!