Website 'flipper' seeks to raise $6 million
Last Updated: 15:48 January 24, 2014
David Koons, chief operating officer and co-founder, said Friday that he couldn't comment on how much the company has raised so far. But according to documents filed with the Securities and Exchange Commission last week, the company had at that point raised $407,000.
Cloud Income Properties is a virtual company of seven employees formed in September of 2012 with strong ties to Boulder. Koons and chief financial officer Paul Lev-Ary both live in Boulder, while vice president of sales Frank Zoldak lives in Niwot.
The company operates much like a person who flips real estate, buying websites that are perhaps underperforming, sprucing them up and getting them to produce consistently again, and then selling them. Buyers of the sites are looking for the monthly revenue generated by them much like a real estate investor might buy properties that generate rental income.
The websites make money in some combination of three ways: selling products, fee for affiliate referrals, and advertising. Dungeonmastering.com, one of the sites in Cloud Income Properties' Inventory for instance, makes money through all three avenues by targeting Dungeons and Dragons enthusiasts. A site that Cloud Income Properties recently sold, GrandCanyonHelicopterTour.net, generates income primarily through affiliate referrals, receiving a fee from helicopter tour companies when a trip is booked through the site.
"There are a lot of properties for sale but being able to find the diamond in the rough is the skill," Koons said.
Koons said the current funding round will help Cloud Income Properties add to its inventory of websites and its sales force. The company is also seeking to create a registered securities aspect of the business, where Cloud Income Properties would create a suite of several websites to sell through a broker dealer to people investing in a percentage of the cash flow of that fund.
Koons said the company is comtemplating a public stock offering later this year.
Koons, who has several years of experience in consulting and business development work for Internet-related businesses, founded the company along with Ron Davies, Jeffrey Fagin and Stephanie Frank, who are all based out of state along with chief executive Kim Southworth. Originally a Colorado LLC, the company became a Nevada C corporation last summer.
In addition to the seven regular employees, the company uses anywhere from five to 25 subcontractors per week.
Koons said the company pulled in about $700,000 in revenue from September 2012 to the end of the fiscal year that ended June 30, 2013. He expects plenty of growth this year.
"You can do incremental growth or you can do accelerated growth," Koons said. "We don't want to stall growth (due to a lack of cash flow)."
More breaking news...
Hospital changes name to Boulder Community Health
The Colorado Department of Local Affairs'
Xcel Energy seeks to reduce energy efficiency programs
The hospital's reach is now spread across 18 locations in six
Two Moms in The Raw moving HQ to Longmont
Two Moms, founded in 2006