Achieving a seven-figure exit with a business is a truly amazing achievement and many young entrepreneurs can only dream of it. But it’s a reality for Jon Payne. He's not only built one, but two separate businesses and sold them each for over a million dollars! What's even more impressive is that these businesses were in completely different fields — first a marketing agency and then an online store on Amazon.
Jon Payne
Today, we’ll share with you the details of Jon’s story: how he got started, the strategies that led to his success, and why he's now focusing on building online stores in 2024.
If you're looking for inspiration and practical advice on building a successful business, Jon's story is a must-read. You'll learn from his experience and gain valuable insights that can help you on your own entrepreneurial journey.
Starting point
Jon Payne's journey started in 1999 when he chose to study Business and Marketing at Towson University. At that time, the school had just launched an E-Business program, which immediately caught his interest. Jon had always enjoyed messing around with HTML for fun, and he saw the internet as a new and exciting opportunity in marketing. He figured that by focusing on online marketing, he could get ahead faster since not many people had experience in that area.
This led Jon to take on two internships in internet marketing, and after graduating, he started doing freelance consulting. That eventually grew into an agency which he successfully ran for about 10 years before selling it.
Growing Ephricon
When Jon Payne started his agency, Ephricon, he was just 22 and fresh out of college. He was interning at a small marketing agency and picked up a few small web design and maintenance jobs on the side to make extra money and learn more.
Originally, Jon planned to find a full-time job after graduation, but nothing seemed like the right fit. As he got more clients, he realized he didn’t need to keep looking for a job. The big turning point came with his third client, a small non-profit that needed someone to manage their website. He quoted them $780 a month — just enough to cover his rent. Landing that client gave him the stability to go full-time with his agency.
To find those first clients, Jon used two main strategies: cold calling and search engine optimization (SEO). He sent emails to companies, offering to update their outdated websites for a low price. While this approach was tough and only got him one client, SEO ended up being the game-changer.
Back in 2003, SEO was still a new concept, and Jon quickly learned how to use it to attract clients. The breakthrough came when someone from California — 3,000 miles away from where Jon was in Maryland — called him out of the blue because they found him online. Within 30 minutes, Jon had secured a $1,500 web design project.
Jon soon realized that while he wasn’t the best at web design, he was really good at SEO and getting leads. So, he partnered with a local web developer who handled the design work while Jon focused on SEO and managing projects. Over time, most of Jon’s clients came through SEO or referrals from people who found him that way.
This success with SEO not only brought in clients but also became a strong selling point. When potential clients asked for proof of his skills, Jon could simply point out that they found him through his SEO efforts — exactly what he could do for their businesses. It was a convincing argument that helped his agency grow.
Reasons for selling Ephricon
Jon decided to sell Ephricon due to a combination of factors:
- Stress and workload: The agency's growth had been reactive rather than proactive, leading to a flat structure with low overhead but high demands on Jon's time. He was managing multiple roles within the agency, leading to significant stress and burnout;
- Concerns about the future of SEO: The SEO landscape was evolving rapidly, with updates like Panda and Penguin causing significant changes. Jon was concerned about the future role of SEO agencies and the fun factor in the business;
- Financial offer: The attractive financial offer was also a significant factor in Jon's decision to sell. The sale allowed him to secure his children's college tuition and make substantial savings and investments.
The sale process
Jon Payne didn’t start out planning to sell his agency, Ephricon — it just kind of happened naturally, similar to how the agency itself came to be. Initially, he wasn’t even thinking about selling. He just wanted to get a professional valuation of the business. The first company he contacted gave him a vague and unhelpful range, so he turned to a local broker, Viking Mergers & Acquisitions. They provided a much more precise and appealing valuation, which got Jon interested.
After hiring Viking, they quickly brought several potential buyers to the table. But the actual buyer came about in a surprising way. One day, Jon was doing a routine Google search for "SEO agency" to check Ephricon’s ranking and see who the competitors were. He noticed a company called Straight North, which he hadn’t heard of before, running ads on that keyword.
Curious, Jon clicked on their website. While exploring, he found a page titled "Acquisitions," which mentioned that Straight North had bought several smaller agencies. On a whim, Jon filled out the form on that page to express interest.
The next day, Jon was on the phone with Straight North’s CEO. After Viking confirmed they were a legitimate buyer, things moved quickly. Within a few days, representatives from Straight North flew from Chicago to Charlotte to meet with Jon. Just 2-3 weeks after their first contact, they had a signed Letter of Intent (LOI). The CEO of Straight North was experienced in buying businesses, so they knew exactly what they wanted and moved fast, even dedicating a full-time team to the process.
The most time-consuming part was the due diligence, which took about 45-60 days. While it wasn’t the most enjoyable part, Jon felt they treated him fairly.
Looking back, Jon doesn’t regret selling. Financially, he might have made more by running the agency for another 3-5 years, but he was feeling burnt out and needed a break. Plus, there was no guarantee he would have found a buyer later.
As for the deal itself, Jon shared that it was a low 7-figure transaction, based on a fair market multiple of his Seller’s Discretionary Earnings (which is basically net income plus the owner’s salary and other adjustments). As part of the deal, Jon agreed to stay on for a year to help integrate the two agencies.
Venturing into e-commerce and Amazon FBA
After selling his SEO agency, Jon Payne wasn’t in a hurry to jump into something new. The sale gave him enough of a financial cushion so he didn’t have to worry about his next paycheck, but it wasn’t enough to retire on — especially since he wasn’t exactly the type to live super frugally. Plus, he had a Non-Compete Agreement with the buyer, so he couldn't go back to selling SEO services.
Jon tried out a few different online ventures, but it was Amazon FBA that really took off for him. A friend from the SEO world, who was already selling on Amazon, introduced him to the idea over lunch. This friend shared two key insights that made all the difference for Jon.
First, his friend explained that Amazon is basically a search engine where people search for products and buy them. It’s even better than Google because Amazon customers are ready to buy—they already have their credit card on file, and the platform tracks everything perfectly. This was back in 2014, and his friend compared it to doing Google SEO in 2004 — early and full of potential.
The second tip was about how to estimate how much revenue certain products were making on Amazon. This trick turned what could have been a risky business into something more manageable. His friend showed him the “999 trick,” where you add 999 units of a product to your cart and try to check out. If Amazon has fewer than 999 units in stock, it will adjust your cart to show the exact number available. By checking back the next day, Jon could see how many units had sold.
This little trick was a game-changer for Jon. He started tracking the sales of over 100 potential products using spreadsheets. His first product went live on Amazon in early 2015, and from there, he expanded into related products, created a second brand, and even bought a third brand. He also expanded into Amazon’s Canadian marketplace, which did well, though the UK market didn’t work out as well for him.
Over the next seven years, Jon grew the business to around $5 million in annual revenue. In 2022, he sold the business and its three brands to one of the big Amazon aggregators in another low 7-figure deal.
Marketing strategies for e-commerce brands
After selling his first group of product brands, Jon Payne bought a small brand in a different niche and started another one as well. He experimented with different sales channels, like driving traffic to a Shopify site and building out an Etsy store. While he acknowledges that these platforms can work well in certain niches with the right execution, Jon has chosen to focus entirely on Amazon as his sales channel. In his words, he prefers "fishing where the fish are."
Some might say this approach is risky and that he should diversify. Jon agrees that diversification is important, but only if there’s another platform with even half the volume of Amazon. According to him, almost every Amazon-focused seller he’s spoken with, who has invested significant time and money into other channels, has found it wasn’t worth the effort.
Instead, Jon diversifies within Amazon itself — by offering different products and building multiple brands. He’s also expanded his business by running an agency that helps established brands and manufacturers succeed on Amazon. For Jon, that’s enough diversification. He prefers to stay focused and excel in one area rather than spreading himself too thin and becoming a "jack of all trades, master of none."
The sale of the Amazon brands
Jon approached the eventual buyer himself, emailing several big aggregators actively seeking Amazon-centric brands. The sale process took place between late 2021 and early 2022, with the deal finalizing in mid-2022. Despite the challenging timing due to the aggregators' financing situation, Jon successfully exited the business.
E-commerce vs. Other business models
Jon Payne has explored nearly every popular online business model — agencies, e-commerce/FBA, niche content sites, affiliate marketing, dropshipping, and more — so he has a well-rounded perspective on the pros and cons of each.
He believes both e-commerce and niche content sites are scalable and offer control over your time. In contrast, running an agency often means that as your sales grow, you need to expand your staff and stay responsive to clients on their timelines. While agencies provide immediate cash flow, they also have a lower ceiling for growth compared to other models.
When comparing e-commerce/FBA to niche content sites, Jon sees them as quite similar, with comparable risks. The main difference is that e-commerce involves tying up money in inventory, whereas niche content sites mainly require investments in time, content, and marketing. This makes niche content sites cheaper and easier to start, but also more competitive. On the other hand, e-commerce tends to have less competition, especially when dealing with higher-priced goods.
Both models carry platform risks, as they rely heavily on either Google or Amazon. For Jon, the appeal of e-commerce/FBA right now lies in the fact that selling products benefits Amazon directly, making it a more secure platform. In contrast, niche content sites often draw traffic away from Google, potentially costing the platform ad revenue, which might explain why these sites have been hit hard by recent algorithm updates.
Overall, Jon prefers e-commerce/FBA at the moment because he believes it has a lower platform risk and aligns better with his business goals.
Adapting to Google updates and AI content
Google updates have significantly impacted Jon's approach to business models. After a near-disastrous experience with a niche site acquisition during the "Helpful Content" update, Jon shifted his focus back to e-commerce. He believes that Google's algorithm now favors shareholders over users, making affiliate or ad-driven websites too risky. Jon now concentrates on Amazon e-commerce, acknowledging the platform risk but finding it less volatile than relying on Google organic search.
Vocational Media and Illuminated Goods
Vocational Media Group
Vocational Media Group is Jon's digital marketing agency, specializing in helping brands and manufacturers increase sales on Amazon. The agency also offers Google-focused SEO and PPC services for select clients. Jon oversees the strategic direction, while a small, highly experienced team handles day-to-day client management.
Illuminated Goods
Illuminated Goods is Jon's e-commerce company, owning product brands distributed primarily through the Amazon marketplace. The company's brands include Wardrobe Hackers, a line of functional clothing accessories, and Candleology, a line of candle-making kits and supplies made from natural beeswax. Jon's agency manages most aspects of the business, while he focuses on new product development.
Plans for the future
Jon Payne has been deeply involved in both SEO and e-commerce for some time now. While he still enjoys both fields, he’s ready to shift his focus to more strategic work. Recently, he’s started taking on fractional CMO consulting for Viking Mergers & Acquisitions, one of the largest business brokers in the Southeast. This new role has given him valuable insight into the M&A space, and he finds it personally rewarding to help small business owners navigate the life-changing process of selling their businesses.
As for the future, Jon isn’t entirely sure what’s next, but he envisions a mix of his current passions: digital M&A, e-commerce, and marketing consulting. He has a list of ideas he’s excited to explore and is looking forward to seeing which one takes off.
Conclusion
Just like a skilled fisherman, who “prefers fishing where the fish are” Jon Payne found success in two different ponds: first, in the waters of online marketing, and then, in the vast sea of Amazon e-commerce.
What can we take away from Jon's story? Probably the fact that with hard work and clever planning, anyone can achieve great success, just like Jon did. So, give it a try, be patient, and believe in the journey — you never know what amazing chances might come your way.
