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We
connected with Rick to get the full story on how
all of this all happened. Blockbuster sales have
been nothing new for him since they began with Men.com
at $1.3 million in 2003 and continued with
over a half-dozen more in seven figures, including
an $8.8 million sale of Porno.com in
2015. Rick said, "I have had some
pretty notable sales but
the sale of Candy.com is my most important sale
for a number of reasons, even beyond the
eight-figure total it eventually generated."
"It
all started in 2009 when I got a call from these two
young guys, Greg Balestrieri and Joe
Melville, who were cousins from a family in the
candy business. I think Greg was 20 at the time. I
hung up on them multiple times, something all
three of us laugh about now! But
they had what it took for me to be
interested. First of all their family was in the
candy business for 37 years. So they had a
true pedigree and they were hungry and energetic.
So, I told them I would sell it to them and let them
pay for it over time but they would have to come up
with a $60,000 down payment first. With their
family's help they put the money together and we
made a deal that gave them the name for $3
million with a multi-year payment plan but
the most important piece of the puzzle was me
also getting 5% of the company."
"They
did well - they grew and grew and grew some more! In
2017 I went to visit them for the first time and
they had a warehouse that was as big as a Costco!
They
also told me that every piece of that
inventory turned within 48 hours. Absolutely
mind-boggling! As they grew they expanded, becoming
a food service company with bigger margins
and more buyers nationwide. When Covid hit they kept
their heads down and continued to grow as
challenging as it was. Still, they had some growing
pains along the way, so I made a few concessions on
their payments in return for more shares in
the company. Three years ago, when an
investor came and bought into the company, I sold
some of my shares and got a $1.7 million
payout but still retained a stake in the
company because I always believed in Greg and Joe
and always told them that. I didn’t want to
cash out. I wanted to go for the ride!"
Joe Melville (left) and Greg Balestrieri
(right) of the Melville Candy Company with Rick
Schwartz celebrating the $3 million deal
they made for Candy.com at the 2009
T.R.A.F.F.I.C. conference in New York City.
"They
used Candy.com like a booster rocket. They
used the credibility that domain gave them to
elbow their way right into the center of their
industry and they grew as expected. When they
expanded into other categories they became GreenRabbit.com
and that allowed them to sell off Candy.com
in 2021 and use those funds to grow the company even
more without having to get outside financing."
"So
here we are in 2023 and I got an unexpected call
last Monday morning (September 25), and Greg and
Joe were just giddy. They told me they had
agreed to sell the company and it was going
to be BIG news that would be happening within the
next seven days. Oh my! I was smiling so hard
for 45 minutes I created new wrinkles!," Rick
laughed. "We
had such a wonderful phone call and talked about
what we have been through these past 14 years,
about how much I believed in them and how much
they appreciated that I did believe in them and
still do. It literally changed their lives. They and
the friends and family members who invest in them
become multi-millionaires now - and that is
the greatest satisfaction of all - middle-class to
upper class with a domain name!"
"I
walk away with slightly over $7 million plus
the millions received before, so now I have a total
deal worth over $11 million. One hell of a
return on a low six-figure investment and this
is a successful formula - allow someone the time
and a long enough runway to get their business off
of the ground. I
am an angel investor but invest with domains, not
dollars. I invest in people that I believe in.
This is now my baseline sale. This is the sale
that I point to when I make other deals. This is
my model And now this model is proven. It has come
full circle."
"But
the story doesn’t even end there. Now, Greg and
Joe have a great success under their belt. They will
be able to parlay that success into an even bigger
success in the future. They know the path and
they’re not a one trick pony. In the meantime,
Greg and Joe and their families are going to come to
Florida and we’re going to have a yacht
party. One that none of us will ever forget!,"
Rick smiled.
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