When I started Get Rich Slowly — on 15 April 2006 — it made very little money. It earned a few pennies per day. Slowly, the income grew. A few pennies per day turned into a few dollars per day, and that turned into tens of dollars per day. Eventually I was making enough money from this site that I could quit my day job to blog full time. The last time I mentioned my income on GRS, I wrote that I was making $5,000 a month. That was in November of 2007, I think. Then my wife, my lawyer, and my accountant all asked me to stop writing about my income. When that holy trinity speaks in unison, you listen, right?
The more I worked on this site, the more the income increased. I won’t say how much I was making, but if you read Crystal’s guest post from earlier this month, you can make some educated guesses.
As Get Rich Slowly grew, one of the curious side effects was that people began to make offers to buy the site. I always ignored those offers.
Eventually I realized I was being foolish. I wasn’t following my own advice. What would I tell my readers? Well, I’d tell them to try to make more money, so why wasn’t I trying to do the same? At the beginning of 2009, I made a private New Year’s resolution: I decided to field every offer for the site that I received.
The Razor’s Edge
It didn’t take long to get the first offer. At the beginning of January 2009, someone wrote saying he wanted to buy Get Rich Slowly.
“How much will you pay?” I wrote back.
“I’ll give you $5,000,” the guy said.
“No thanks,” I said. That was less than one month of revenue. I’d be foolish to sell.
A week later, I received another offer to buy the site. But I didn’t notice. I was distracted. I’d just received news that my best friend had killed himself. This single event rocked my world. If you want to find a catalyst for all the things that have happened with me over the past few years — the travel, the soul-searching, the sale of this site — look no further than Sparky’s death.
Suddenly, blogging didn’t matter. I had been burned out before this, but now I wanted to leave, to quit cold turkey, to do something else. My wife and I talked things over, and she agreed that it might make sense to sell the site.
When the dust had settled at the end of January, I found the second offer to buy GRS waiting in my inbox. I replied.
“How much will you pay?” I asked.
“We don’t know,” the guy said. “First, you have to sign a non-disclosure agreement. Second, you have to send us all the financial information related to your business. Third, you have to wait.” This was baffling. I contacted my accountant and attorney to ask questions. They said this was standard practice, and to go ahead. I sent the info over and waited. And waited. And waited.
The First Offer
While I waited, Kris and I talked more about the possibility of selling Get Rich Slowly. Could I actually do it? Would I? In general, I loved the work, and I loved the community that was coalescing around the site. Plus, I felt a huge responsibility to the people who had been reading for three years already. I didn’t want to leave them in the lurch. But I was feeling increasingly frustrated, as if I’d said everything I could say about money. I wanted to quit anyhow, so what was the difference? And there was the fact that I wanted to write a book and begin giving community presentations about personal finance. Thinking things through made my head hurt. There was so much to consider.
Eventually, the company (which I’ll call Computer Resources so that I don’t violate the NDA) came back with an offer. How much was the offer? Because of the NDA, I can’t give a number, not even a fake one. But let’s just say Computer Resources offered me a lot of money for the site.
In fact, the offer was so big I couldn’t refuse. At the same time — again, following my own advice on this blog — I figured I had to negotiate. I submitted a counter-offer. Computer Resources went back to the drawing board.
About this time, I started to feel as if this was all way over my head. I did some research on the web and found other sites that had been purchased by Computer Resources. I contacted the site owners and talked by phone or by e-mail. They all had good things to say about Computer Resources except that apparently the company simply purchased sites, slapped ads all over them, and then left them to die. They never updated content. I didn’t really want that to happen to Get Rich Slowly.
One of the fellows I talked to suggested I contact an investment banking firm to help guide me. “They’ll take a commission, but it’ll be worth it,” he told me. “It’s just like using a real estate agent to sell a house.”
The Second Offer
As February 2009 wore on, Computer Resources still hadn’t responded to my counter-offer, so I contacted the investment bankers. They were excited to work with me. “You’ve already done a lot of the work on your own,” they said. “But we think you can get more for your site. We think you should spend a few months sprucing things up and then put it out at auction.”
“That’s a good idea,” I said, “except for two things. First, I’m burned out and I want to sell now. Second, the economy is tanking, and I’m afraid the revenue for personal finance sites will dry up before long. I feel like I’m on the top of a bubble and should sell now.”
I agreed to let the investment bankers contact one other company, a company called QuinStreet.
As the investment bankers were talking with QuinStreet, Computer Resources came back with their counteroffer. It wasn’t much more than before, but they added a bunch of stock options. I had a week to respond. I told them I’d think about it, and meanwhile started talking with QuinStreet.
At first, QuinStreet made me nervous. I was afraid they’d buy Get Rich Slowly and convert it into one big credit card ad. But during our conversations, they explained they had a grander vision, that they were committed to building a collection of sites with solid financial content, sites like Get Rich Slowly. Unlike Computer Resources, they wouldn’t let GRS wither on the vine; they needed to make money, yes, but they wanted to provide content while doing so.
As the deadline approached for a decision on the Computer Resources offer, QuinStreet gave me an offer of their own. If I would remain with the site for three years, QuinStreet would pay me almost twice what Computer Resources was offering. I was floored. Still, I wasn’t willing to commit to three more years at Get Rich Slowly. I was burned out. My best friend had just killed himself. I wanted to do other things. So, I did something strange: I asked for less money.
The Final Offer
Tuesday, 03 March 2009 was a big day for me. While the surface of this blog was calm and normal, there was a flurry of activity behind the scenes. Computer Resources was demanding a decision on their offer. QuinStreet was scrambling to give me a second, lower offer. I was hunkered at my accountant’s office, waiting. My lawyer was at his office, in constant communication with me. At the end of the afternoon, QuinStreet sent over their revised proposal.
They were offering about 33% more than Computer Resources. Plus, I wouldn’t be tied into the site for three years; I could walk away from GRS at any time.
My advisors and I agreed that this was an offer we could accept, and we finally responded to Computer Resources, which was growing impatient. I asked if they could beat the offer from QuinStreet. They thought about it for an hour, and then declined. They were cranky.
During the month of March 2009, I spent much of my time working on the “Asset Purchase Agreement” to sell this site. QuinStreet wanted some things in the contract, and I wanted others. Mostly, though, our visions matched. They wanted a personal finance site with solid content, and the contract we created reflects that.
For instance, QuinStreet offered me editorial independence. What does that mean? It means that QuinStreet won’t (and legally cannot) tell me what to write. It meant that I could continue to share the same sorts of things I’d been sharing at Get Rich Slowly since day one. I couldn’t be forced to write about credit cards or payday loans or other things that went against my better judgment. (Not that QuinStreet would have asked me to write about those things — it just gave me some insurance.)
But I couldn’t write about everything I wanted. As you know, I’m a pretty open guy. I share much of my life on the internet. And I would have shared the sale of the site, too, except that QuinStreet requested a non-disclosure agreement, just as Computer Resources had. I balked at this. “It’s standard operating procedure,” QuinStreet told me. “We don’t want our competitors to know what we’re doing.”
The investment bankers, my accountant, and my lawyer all said the same thing: “It’s standard operating procedure. They don’t want their competitors to know what they’re doing.” I went along with it, even though it meant I wouldn’t be able to share this very important event with GRS readers.
A New Era
On 01 April 2009 — yes, April Fool’s Day — we signed the paperwork. QuinStreet acquired Get Rich Slowly.
At first, I thought I’d stick around for only a few more weeks…or a few more months. I flew to San Francisco to meet with the new owners, and we discussed the direction of the site. They showed me the re-design they’d already begun to implement. (By the way: If this is the only design you’ve ever known for Get Rich Slowly, then you’ve never read it when I owned the site.)
Because I wanted to leave the site, we had to find new contributors. We held auditions for staff writers. Remember that? That was because I wanted to leave, and we needed replacements. Robert Brokamp and Donna Freedman write here because I was going to walk away. The reader story every Sunday started because I was going to walk away.
But you know what? I didn’t walk away. GRS was my baby. Plus, working with QuinStreet took a lot of the pressure off me. Besides, I felt an obligation to you, the readers. I stuck around. In fact, I’ve stuck around for almost three years now, working with QuinStreet to guide the site’s direction. No, it’s not exactly the direction it would have been taken if I’d been completely in control myself. But that was never going to be an option. I was going to leave the site after Sparky’s death. I was going to quit cold turkey. The GRS of the past three years is the best it could possibly have been under the circumstances.
Plus, QuinStreet has been more responsive than I had hoped. When I sold the site, I feared the worst. The worst never came to pass. In fact, the people I work with always listen to my concerns (and to your concerns) and try to balance those with the needs of the business. I think the partnership has been very successful over the past three years, and believe it will continue to be so.
Managing My Money
What did I do with the money I earned for selling the site? I practiced what I preached.
- First, Kris and I paid off the mortgage. If you’ll recall, in early February 2009, we refinanced our home. We’d started that process before we realized that we might sell the site, and we saw it through to completion. But within weeks of re-financing, we paid off the mortgage completely. This has been one of the toughest things not to discuss. I’ve wanted to talk about it many times over the past three years, but have been unable to. Now I can. (And believe me: Not having a mortgage has made the divorce process much, much easier.)
- Second, I paid taxes. Yes, I know that by paying taxes early, I’m letting the government have use of my money instead of earning interest on it myself. I don’t care. This is one area where I still prefer to be irrational with money. I like to pay taxes immediately so that there’s no chance I’ll forget about them or make a mistake. That’s what I did with the money from the sale of the blog: I paid taxes right away.
- Third, I followed my own advice again. I set aside a piece of the windfall to use for things I wanted. I bought season tickets to the Portland Timbers. Kris and I vacationed in South Africa (and still plan to vacation together in South America next month). And so on.
- But most of the money went straight into savings. One GRS reader — Dylan Ross — is a financial planner, and he’s been privy to some of my financial moves. He’s seen that a bulk of the money went into index funds (again, practicing what I preach), while another portion went into municipal bonds. (The economy was rocky at the time, and Kris was nervous, so we put some of the cash somewhere “safe”.) I’ve also loaned some money to the family box company so they could make some capital improvements.
Over the past three years, I’ve strived to not touch any of the money I earned from selling Get Rich Slowly. And that’s my goal for the future too. Instead, I live off my income from writing. QuinStreet pays me a modest salary to manage Get Rich Slowly, and I continue to write for Entrepreneur magazine and other outlets. Though I’m in no danger of falling into debt, I tell myself that touching my savings would be the same thing. My goal is to keep from deficit spending. So far, so good.
The Bottom Line
So, what does all of this mean for the future of Get Rich Slowly? I’m not sure, actually. QuinStreet owns the site, and they can do what they want with it. If they decided that this site would make them more money as a porn site, they could turn it into a porn site. But they’re not going to do that. After working with the company for the past three years, I’m convinced they want to provide quality content so that people can improve their financial lives. Yes, they hope this will lead folks to respond to the advertising — they want to make money — but they understand that content is king.
I know that many folks will be pleased that I’ve followed my own advice and managed to achieve financial prosperity. I also know that some folks will resent this success. And, especially, that I haven’t mentioned it before. Well, I couldn’t mention it for a long time because QuinStreet was trying to keep the news from its competitors. But I can talk about it now.
The bottom line is that for roughly half its life, Get Rich Slowly has been owned by QuinStreet. (March 15th is the actual mid-point date for ownership.) If this site has helped you move toward your own financial goals over the past three years, it’s been under their reign. When I talk about “social media elves” or “marketing elves” or “technical elves” or any other sorts of elves, I’m actually talking about QuinStreet employees. There’s now a whole team of folks who help with this site. It’s not a one-man show, and hasn’t been for a long time.
There have been a number of changes to GRS over the past few years. We’ve brought on staff writers, and my voice has diminished. It’s flattering that some folks find this frustrating, but it was also unavoidable. Lately, though, I feel re-invigorated. Now that I’ve been able to share some background — both in my personal life and my professional life — there’s tons for me to write about. Plus, I’ve been wanting to do more smaller articles like I used to.
I won’t become more prolific this week or next — I’m about to leave for Argentina! — but in March, I intend to increase my output at Get Rich Slowly. It won’t ever reach the “12 article per week” level that I used to produce, but it’ll be more than the “one article per week” level I’m at now. It’ll be fun for me, and I hope that it’ll be fun for you.
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Yeah, I’d be lying if I told you I didn’t feel a little betrayed, and yes, I agree completely with your assessment that some people (myself included) will not feel like you could possibly understand what it’s like to be financially strapped when you’re absolutely not. You can’t, and you don’t. You DO sleep well at night, as you’d said.
OTOH, your life isn’t mine. If it bugs me enough, I’ll simply stop reading.
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But if you read through the site and JDs story of overcoming debt and becoming financially stable, you’d realize he does know what it’s like. He lived it for years and is only in the last 4 or 5 years really out of it.
Don’t discount past experience just because his current situation is better.
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Maybe so, but I know for a fact that if I won a lottery today that allowed me to pay off my mortgage, pay all my taxes, buy a car outright, go on vacation, and deposit a huge nest egg that I could use to weather any financial storm, it would change my status over against my friends. The people who were living hand to mouth and wondering how to pay all they owe will not want to hear me talk about money. You simply cannot relate anymore.
And I know some will say it isn’t like JD won a lottery–he worked hard. I disagree. I know people who work their asses off–every bit as hard as anyone and cannot get ahead. I have a blog–why can’t I sell it for hundreds of thousands. It was luck that JD got in to a good thing at a good time and made it work. No different than getting lucky at stocks, but it’s not for more than 99% of us regardless of our work ethic. It was lucky, and yeah sorry if it burns a little that some have a ton and others do not. The fact that those who do have a ton want to try to sympathize with those who do not is insulting. Educate, sure. But to try to talk as an equal, you can’t.
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Martin, I agree with you that there’s a large element of luck involved. Very much so. I also agree that once your financial situation changes, it’s tough to completely identify with where you were before. That’s not to say I don’t remember the years of debt, but that my immediate concerns are different. That’s one reason that — behind the scenes — we’ve tried to find somebody in a similar position to the one I was in when I started the site. Turns out it’s tough to find good writers in that position. But this is also the reason Donna Freedman is on board. Her frugality-oriented posts are outstanding, and she helps provide that grounding element, you know? It’s a real balancing act, but we work to provide content for folks in all sorts of financial positions.
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I’m not normally snarky here and I’ll try not to be in this comment. A few things:
1) Yes, it IS easy to disassociate from where you’ve been when you aren’t in that place anymore.
2) It’s JUST as easy to say “that’s mostly luck” and discount the hard work behind it.
Lots of people put in effort–effort is not preparedness. Working with the skills you have can be better than putting in effort that is in the wrong direction. If you do the prep work in the right areas, you’ll be ready to take advantage of luck when it happens.
You say you have a blog–why doesn’t your name link to it? I read your post and may have clicked through to see what you write about–that’s a lost opportunity there.
I don’t say this to accuse you or to claim that you aren’t working hard enough. I just want to say that the mentality isn’t helping.
As a person with previous debt issues, I remember thinking to myself, “Well, those people had a leg up/parents to help/are better at X” which, while true, didn’t explain why I was doing Y. I needed to work with what I had and make progress from there. It took me quite a few years to realize that.
And, while I’m not rich (slowly or otherwise), I’m certainly making progress. Meanwhile, I have friends and family that say, “well, that’s because you chose that major/are smart/got that nice job…” Sometimes it’s not what you have, but how you use it. And the mentality to get beyond where you were.
Anyway, hopefully this didn’t come off as holier-than-thou. Sometimes I read things and they set off my triggers.
Probably doesn’t help that I just talked to a “mouth-poor” friend that is already planning on spending his tax refund on another new PC. His roommate is shaky and he might need to find a new place to stay (with no money saved), but he’s getting a PC (when he has 2). :/ I could rant for days about the people I know. Time to stop.
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@JD
(For some reason when the comments reach the threshold they have, I can no longer reply to a particular person, so I’ll do it like this)Thank you for your response, and the fact that you try to accommodate a wide range of situations is appreciated. Of course you remember the days of debt, I only point out that your current situation makes it nigh impossible for you to speak empathetically to those not in your situation. Part of the appeal was that as the site’s figurehead, you were ‘in our boat’. The fact that you were instead due to a windfall secretly in a situation that many of us not only envy but will never see in spite of our best efforts is what burns. I know the NDA precluded sharing. I know that doesn’t invalidate the information on the site. It’s a strictly emotional response, but it does make me feel like I was shafted and in a bad way because in a world where regular people are so often patted on the head by the ‘haves’ it was nice to feel like this wasn’t one of those places. That’s really all I have. I’m sure after I absorb it, it will be even more of a non-issue than it was when I first read the post.
@Ash
I’ll try not to be snarky as well.
You seem to disagree with the ‘luck’ bit of my reasoning, thinking that the excuse is that I want to foist off a bad predicament onto unwise choices. Reading between the lines of your reply, it seems to me that you’re suggesting that I might be the cause of my own failure (I don’t link to my blog, I might spend where I shouldn’t like your PC-purchasing friend). I’m the first to admit I don’t do everything right, but who does? (My blog, BTW, contains only my thoughts–I doubt anyone would pay for that). However, I can tell you that I subscribe to much of what’s outlined here, and although you can’t know my situation, I can tell you that beyond my mortgage, I’m debt free, I put cash aside each pay for the rainy day, I have insurance, I own my vehicle, I pay all my bills each month in full, and I never buy anything without knowing I have the money for it when I buy it (that goes triple for frivolous things like a second PC). I too have friends that will buy a new sweater when they have a closet full even though they’re up their eyeballs in debt, and those folks ‘set off my triggers’ too.
My point is, while the ends are meeting, and I think I am being wise, I can tell you that a single job loss or catastrophic life event and I am screwed. I can ‘use’ my earnings (what’s left of them) only so much. And, I dislike my job but I’m stuck as I have a house (and yes, my family needs the small two bedroom semidetached I chose for us). I can work at a job I don’t like for the rest of my life and not have the sort of nest egg JD got in one fell swoop. And yes, it *was* greatly luck. Sure, there was some effort, but the windfall? Luck.
I’m sure that the people in our lives who set off our triggers by being unwise with money and then complaining they have none wouldn’t want to hear advice from me, because I’m “Mr. In The Black” and I cannot relate. In the same way, how could I possibly feel like JD could relate to me? He’s someone who is sitting on a job he loves, with travel possibilities and a huge nest egg should anything go wrong.
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Well that seems rather petty don’t you think? If you struck it big wouldn’t you want other people to be happy for you? Why can’t people just be happy for each other?
JD had like 30k in debt, why wouldn’t you want to be happy for someone who worked hard for their success? He worked hard for it and he deserves it.
IMO don’t hate people who worked hard for what they have, really the whole story inspires me and it should inspire you too.
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Petty?
Not really. I get that the world has its haves and have nots. I also get that just by sheer virtue of where I live I am very fortunate comparitively. I understand that some people get lucky and some do not, and that’s the way it is. I don’t, however, think JD worked any harder or is any more deserving than many people. He just got lucky.
None of that’s at issue though. The thing here is that, as someone else pointed out, his site is called “get rich slowly” and he got rich quickly. *Very* quickly. It’s hypocritical. And my original point is, he’s in no position anymore to be trying to struggle along equally with the readership. If he’d seriously worked hard until he retired and had only what he earned in that way like the rest of us, that’d be one thing. But in one she-bang, he got it all. Why should this make me happy? I’m not happy that Steve Jobs’s children never need to work a day in their lives and that his unborn grandchilden are already richer than I’ll ever be either. I have my life, and that’s what I have. My point has always been that it’s a far cry farther from JD’s life than I believed it was. *shrug*
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@Martin
I don’t think you are the cause of your own failure. Please believe me when I say that. There are truly situations in life that cannot be duplicated. Luck plays a big role in many situations. But, you can “augment” luck (and timing), if you will, with the choices you make. Your luck can be helped by your skill set, debt burden, and willingness to take risks.
Yes, JD “got lucky”. But, did he know that he would get rich so soon after quitting his day job? That was a choice that let him find his “luck”, if you will. He could have easily gone the other way and said, “This blog won’t make me a better income than the box factory, and I need to make sure I can do X” and GRS wouldn’t be what it is today. On the other hand, he could have trudged away at this blog for years on the side, not made any income, and not given up. Does that mean that person was less lucky? Maybe he or she didn’t have the ability to draw the audience in as well (skill/technique)? Maybe they had bad timing starting their financial blog?
Is it the chicken or the egg?
When you (or anyone else) steps out into the unknown, they are taking a risk. Some of the luck we get can be utilized to “make” more luck. Some of the hard work we do isn’t lucky, but the breaks we get that come with it are. You might not find the luck to make you a millionaire overnight, but why couldn’t you find the “luck” to make yourself a comfortable income?
As far as your personal thoughts–have you heard of “The Bloggess” or “27b/6″? They are the thoughts of those people. Admittedly those two can be extremely funny.
It all comes down to how you interpret success. Some people would say you are already there–that they can’t take advice from someone with no debt. My only issue with your comment was the sort of “it only happens if you are lucky” vibe. I hear that sort of phrasing too often and so I tend to pick at it.
This is way too long an answer…
Best of luck to you.
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@ Ash
Makes sense to me, thank you for taking the time to clarify. “Luck” is a slippery topic, and I think we could go around for a while on this. At the end of the day, I suppose I just feel jealous of those that seem to have more “luck”. On my worst days, if I think that I’m going to do what I’m doing until I die and all I’ll be able to say is, “at least I’m not in debt” it sorta makes me feel like why should I bother? But the brass ring of “more than enough” not only seems impossible to reach without “luck”, but also a movable target based on attitude. I will try to work on mine.
Thanks…
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JD and GRS were “overnight” success stories after 3 years of writing 1-2 posts, 6 days a week. Yes there is always an amount of luck involved, but also lots of work.
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I feel a lot like Martin does. While I am very happy for you JD, and I know it was in part due to hard work, and good fortune, I have had the sense over the last few years that you, and now, a few of your staff writers (Donna excluded, I love everything she does) are just so…far, for lack of a better word, ahead of the average person working their butts off, trying to make ends meet, or get ahead a little bit that so many of the posts are either not applicable, or seem to be rubs at the people who can’t or don’t want to buy organic chocolate (for one) or travel extensivly, or pay for a house with cash, or build their own house, or become a successful blogger and financially well off within a few years.
Of course, I understand many of us have different curcimstances, for example, you have no children, but I know many of us do, and sometimes, it’s actually MORE discouraging reading some of the posts than it is encouraging. I miss the old GRS, back when it seemed like you were working towards your goals, instead of having already gotten to the stage of wondering what to do next, since you’ve done it all already.
I know, that any time I want to, I can stop reading, and for the last few years, I mostly just skim, hoping for the rare gems that used to appear daily.
While I am happy for your success, I am saddened that the site doesn’t seem (in my opinon) to speak to the average person anymore.
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Thank you for sharing. And congrats on your success!! GOOD FOR YOU!!!!!
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Congrats to you and your success, JD. You have the premiere financial site on the web as far as I can see.
Had not even an inkling that you sold the site. When you create something of outstanding value, other companies will be interested in acquisition. So I guess no one should be shocked.
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A huge congrats on a well and smart executed idea even if it might have not been such at the beginning of the era. Lots to aspire to, in general, a.k.a. if you do what your heart desires and put solid effort, things pay up. Kind of an American dream:) I have a somewhat of a friend whom I told recently she is my definition of an American dream by setting the bar high, dreaming real things up and going after those goals full speed. She gets them, too. So do you.
And I agree with a handful comments and your one response that the reason your website draws attention and has folks stick around is the story. The story behind simple math or article about how and what. Personally, I don’t gain anything from GRS because of where I come from and frugality instilled and debt being simply not an option, and accumulation slowly, and fighting, and never giving up, and planning…(just wish I had that entrepreneur gene in me to add:)), but I really enjoy reading well written stories shared, well delivered advice, and at times when I don’t find something that attractive – I skip a day or few. But overall, awesome job.
I am thrilled you were able to pick an option that allows you to stay while not pressuring you into it. Great combo. And if our voices matter (and I believe they do, for you, to a certain extent) – please keep putting your voice her to be heard and manage other’s voices – we seem to like you:)
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Wow.
I noticed the changes that began back in 2009, but thought you were simply cutting back on work. I knew the site was profitable, but was wondering how you were paying for all of the travel, while writing a lot less for Get Rich Slowly.
Nice to learn that you made a good deal to sell the site while still working for it, but I’ve been coming here a lot less since you cut back on your articles here. Maybe that’s because I like your writing style so much. Then again, my own financial situation has improved tremendously since I start reading this site back in 2008. That’s partly thanks to your advice (and partly thanks to a new job that pays a lot more than my old job).
Anyway, congratulations on your success, but don’t let it make you lose sight of the financial values you’ve learned and shared with us over the years.
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This is right where I am. I’ve been reading less here since you (JD) quit writing so often. I too, wondered, how you could travel more when you wrote less, but I figured you had a solid readership base and enough advertising so that the income had become rather “solidly passive” by then.
Anyway, while I think most would be honest to admit a little “jealousy” to your situation, we also are genuinely glad for you. I want to always rejoice when someone I know gets hit with something great. I love to hear about travels and great experiences other have and don’t want to respond with “wish I could afford that.” I know that you worked hard for several years to achieve this.
But at the same time, I learned about the sale of the site and the divorce on the same day. (I read the part about the mortgage being paid off makes the divorce easier. and I was in complete shock–had to go back to my Google reader and try to find the post that mentioned that–a while ago–was behind due to Christmas activities, sickness, and then a trip to Kenya.)
I’m kinda “down” today–which is ridiculous since I don’t even know you. I guess it is because I started reading a long time ago, when you were early into blogging and have followed your life.
The site is great, though and I will continue to come back. I do read less, however, since you quit writing. I will like to see more of your posts again.
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Even though it was 3 years ago, congratulations on the sale of your site. I think a large percentage of website owners secretly hope for the day when someone recognizes the potential in their site and wants to purchase it.
I look forward to reading more of your posts here.
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I think Rob hits the proverbial nail on the head here. J.D.’s story makes GRS. I find the other writers are good, but they’re writing articles based on their experiences (well, mostly). That’s not the same as an ongoing narrative.
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Argh. I meant to reply to Rob in #65, and now I can’t edit my comment!
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Aha! I was a frequent reader and then a daily reader for a long time, but around the time you hired the staff writers, I pretty much stopped reading the site except for an article every month or two. A lot of that was me having read all the basics and getting bored with the new content, but I’m guessing the new ownership (and writers) played a part too.
Anyway, congrats JD. Sounds like it was definitely the best decision for you personally. No hard feelings…I mainly just got bored with personal finance in general.
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Hi JD and Congrats!!!
I didn’t really clue in on the sale until I read the comments (where others mentioned it) in a different article, but I don’t begrudge you one bit! It’s fantastic that you managed to negotiate what you wanted to get and the freedom, too. Pretty fab.
I’m honestly glad you sold it, because the burnout you were displaying was pretty severe. You needed time to step back and recuperate. And I think, if you hadn’t sold it the way you did, you might not be as willing to come back now. Being able to walk away anytime in the last 3 years must have been a great psychological boost when it came time to write things. Bravo for knowing your limits–money is a tool to get what you want, and you wanted freedom. You didn’t leave your day job just to get stuck with one you were starting to hate.
I’ve been reading less for the last 6 months or so, but I find myself coming back more often now. It’s the personal in personal finance–articles are great, but people are what make things interesting.
Oh, and just another person that wants to thank QuinStreet for keeping this site so useful.
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I started reading this site over a year ago. I started reading the site because I had “learned” that the site was started by a guy who had financial problems and this was his road to get out of debt. I felt this was one of the few honest sites out there.
Today I find out that this is not a “honest” site. I don’t think I will be visiting this site again.
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Hm. I’m not sure what makes you think this site is dishonest, Malcolm. I did start this site when I had financial problems, and the site did help me get out of debt — even as I did so. I’ve striven to be as honest as I can here, even when it hurts. The sale is the one thing I’ve been unable to talk about (and, later, the issues with my wife). I feel like the last few weeks have allowed me to bring these important things in the open, so that everything is clear again.
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Well…tongue firmly in cheek…the title of the blog is misleading for the creator of the site personally. You’ve preached ways of spending less than you earn, getting out of debt, and investing in tax deferred low MER dividend funds over your lifetime to retire rich (slowly) as I understand it.
But what you’ve done yourself is create a business and sell it to become rich quickly – like that obnoxious Ramit Sethi guy might preach (I don’t care for him at all if it’s not obvious).
That said, everyone should be happy for you JD and I certainly am. It does sort of attribute to the wisdom my grandfather (a wealthy man) has always told me, that you won’t get rich working for other people. Create a business and that’s where true wealth comes from.
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When he started the site, that was his goal. Do you think he should rename it? Is a person supposed to rename something as circumstances change?
I hardly think he’s being dishonest or misleading. When people are it their early 20′s and 30′s, they think that anything that takes 3-4 years is “forever.” His plan was to “get rich slowly”.
Maybe some think he shouldn’t write here now that he isn’t poor. That is silly as he has a depth of knowledge and perspective that most of us don’t have. When he got out of debt, he was very clear that “now that he is out of debt”, he had to change directions. He then discussed it and talked about it openly and talked about being in a different stage of personal finance. He also admitted that he would now start talking about investments and try to stay on topic to those who were struggling, but since he wasn’t struggling anymore, he also wanted to talk about some of those more advanced topics.
I personally like the range of topics provided-just like JD’s writing style better than most–I don’t even know why that is the case.
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His hands were tied because of the NDA and honestly do you think that businesses tell their customers EVERYTHING they’re doing? Even small businesses need to keep things private at times.
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…. That doesn’t mean we have to like it. Right?
I think that JD acted with integrity. That said, I can understand the POV of someone who thinks they’re reading the personal blog of someone who is in the trenches with them. They might feel betrayed to find out that there was more going on behind the scenes.
That said, I would suggest that person consider just how much that impacts what they’ve gotten out of this site. For me, the impact has been minimal.
I liked this site much better back when JD was the main writer, but I still believe this is the best personal finance blog on the web.
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I suspected as much, because I came across some reputable sources that said you had sold it in 2009 (though I forget exactly where), and to me that is just fine!
Your site continues to be the best personal finance blog out there. Well done!
Could I make a request of your technical elves? Can you add a plugin so that the site is compatible with mobile devices? It will load so much faster on people’s phones that way.
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I’ll 2nd the request for a mobile compatible format for this site.
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I’ve been a GRS reader for many years, and have really enjoyed the site. As JD has already said, the fact that he was telling his story is what makes this site what it is.
JD, I’ve noticed the change over the last few months and am glad that you will be writing more once you return from your trip. Your voice is the one that has drawn most people to this site and it is why I still return. I enjoy a couple of the staff writers (Brokamp is my favorite), but you are the reason that I check the site every day.
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Just to be explicit: My goal (and I don’t know how achievable this is) is to keep things as they are now except that I’ll add a few small afternoon posts each week, which will be written by me. I don’t want to overwhelm folks, so these won’t be long. But they’ll be from me and they’ll be in my voice. Long-time readers will recognize them as the quick afternoon posts that were common when the site as young. I haven’t done many of these lately, but they really do add value, I think. They’re quick write-ups of articles at other sites, pointers to new financial tools, etc. There are plenty of longer, in-depth articles here, but there’s not enough linking to the wider world of financial info on the web. These afternoon posts will let me do that while also allowing me to reassert my voice here.
That’s my goal, anyhow.
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I look forward to your afternoon “spare changes” and the like. In fact, I still check every so often in the afternoon to see if you have posted! I have been a quiet, long time reader and value your voice and story.
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I honestly would never have noticed you sold the site. I just assumed you were making a ton of money and hired staff writers to take some of the pressure off yourself. But then Quinstreet called me maybe 2 years ago wanting me to try out one of their widgets on my own site. They pointed me to GRS as an example of what the widgets would look like, telling me “we own this site.” The direction the site had taken definitely made a lot more sense at that point. Congratulations!
Quinstreet has a great reputation and from what I’ve seen around the web, they really are serious about providing great content. I’m sure they won’t screw the site up.
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Congrats J.D.! Quite an accomplishment and a wonderful financial position you’ve put yourself in. As many have commented here, I appreciate the openness in sharing your story.
As you may have already discovered, now that you have a significant amount in savings, it is returns on your investments that takes center stage as the overall biggest financial impact. Expense control is important but secondary, especially as it seems you have very good handle on that. This transition to be more focused on your investments rather than on finding new ways to save money does not come naturally (in my experience). I would love to see you post on how things are different (or not) for you in this regard.
While i imagine for peace of mind, you did what most people only dream of – paid off your mortgage early. i offer a different way of looking at your new financial situation in regards to having a mortgage.
1. mortgage rates are about 4% (cheapest they have been in over 40 years). interest deduction on taxes makes effective rate closer to 3%.
2. a conservative investing approach such as the permanent portfolio historically has earned 10% annual return over the last 40 years, with lowest year return of -4%. A remarkable track record as you have noted in a post before.
More info on Permanent Portfolio: http://crawlingroad.com/blog/2008/12/22/permanent-portfolio-historical-returns/
3. using your tag line of “personal finance that makes cents”, the odds are heavy in your favor to make a lot more by carrying a low cost mortgage than it is by being debt free.
I write this because I did the same thing as you about 5 years ago. I received a windfall from the sale of my business and immediately paid off my mortgage and put the rest in savings to invest. In looking at above analysis, I decided it makes much more sense to use historically cheap money for a historically low risk solid return investment portfolio. I close on a new mortgage tomorrow. That’s my two cents, FWIW.
Looking forward to seeing where life takes you next.
Kevin
(a fellow Portland Diehard investment group member)
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Congrats, JD. I first stumbled onto your site when I was doing some photog research. Go figure!
All the best!
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I found out you had sold the blog last year and didn’t realize you had never announced that you had sold it. I know QuinStreet has bought a few of the popular finance blogs. It isn’t really a secret since you could find out what blogs they’ve bought by using Google.
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Okay, okay…congratulations (I really mean that). Can we get back to the personal finance blogs now?
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Fantastic color JD! It is hard to walk away given this site has been your baby for so long.
I don’t think anybody could turn down the offer they gave and let you still have editorial control.
If you’re burned out, like you mentioned during lunch, you’re burned out! Time to move on and balance things out.
Pls let me know next time you’re in SF so we can grab a bite again!
Best, Sam
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JD, congratulations on your success (thought that seems a bit belated now). As someone who wants to write professionally, it’s inspiring to know your story.
Thanks for sharing.
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Hi, JD –
Several comments.
First, I am so sorry that you and Kris broke up, but that is your own business.
Second, your garden posts were my least favorite columns, but now I find myself wondering what will happen to the garden.
Third, I am glad that you are not leaving the site, because it would not be the same without you.
Fourth, I still think that all the comments around the time of your mother’s illness show a great need for guidance through the healthcare maze of those of us dealing with our aging parents, and that you should write a book about that.
Travel safely!
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I do like the JD articles more than other staff writers (although I like Kris’ the most).
I think it boils down to how one relates to the audience. I can see the staff writers sitting there knowing that there is a deadline and having to come up with a good topic. However that topic isn’t tied to their real life. I think that lessens the worth of the topic. It’s always things that are very basic like “how to save extra 30 dollars in a month” or “how to automate your savings”; things that a lot of readers know by now. But those can be spruced up by real life with “how this already frugal staffer tried saving money for 30 months and how he/she succeeded/failed”. Advice in a vacuum isn’t as interesting.
I think the multiple authors could have a great impact. I think the reason I like Kris’ canning and gardening posts most, is because I can relate. I want a dream house, I want a garden, I want to grow my own food, and yes I’m a female. I can’t really relate to JD anymore because a working mother has different challenges than a self-employed (sorta) divorcee. I don’t need advice on furnishing a new apartment. I need advice on how to have the heart to not give my kid all the Stuff she ever asks for. From that aspect more authors, more points of view, more relatable life stories.
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I think that I started following GRS about the same time you sold it. A lot of the appeal to follow GRS is that I felt I’m getting advice from people like me. Even knowing that you don’t own the site I still feel this way. You have done a fantastic job at keeping GRS ture to it’s roots, and still gain financial success from it. Thanks, and Congrats!
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JD – kudos for coming out – it must have been tough keeping this quiet for so long.
I’m so glad that you did it in a way that didn’t compromise your original vision.
I think you know that so many readers value this site because of you, and view GRS and JD as inextricably linked. I know I do.
Best wishes on your vacation and your new direction in life.
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That is great news that you paid off your mortgage. It’s great that you found someone to buy the site (years ago), and I’ve been around awhile and like the site. And I’m glad that you “get that” people might feel a little put-off by your not having a large debt such as a mortgage. Yesterday, I read Trent’s post at The Simple Dollar and simply felt amazed, and I’m amazed again. If I’m to be honest, I’m jealous of you both that you’ve been able to do it (but happy for you at the same time). This is a goal of my own and I am taking small steps to pay it off quickly, though I’m not sure I can do it as quickly as the two of you. In the meantime, I do wonder if our paths will diverge just a bit more because I’m not sure you’ll be writing “for me”. Seasons change and all that. But I heart Donna. Don’t ever do anything to make her leave.
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Yea, anything you can do to make sure Donna never leaves!
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Trust me: I agree with you, and Donna knows it. I’m pretty sure she loves the GRS audience, too, so she’ll stick around as long as she can.
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Group hug!!! [[ ]]
Seriously: Thanks to those who have said kind things. I do like writing for this community and I will stick around as long as they’ll have me.
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“I’m jealous of you both that you’ve been able to do it”
I would use envious, rather than jealous. Both mean you would like what someone else has for yourself, but jealousy also means you resent the person who has it while envy does not. You don’t feel the need to bring someone down to pull yourself up.
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Sounds like you’ve done well for yourself with Get Rich Slowly. Everyone should chase the dreams they have and you’ve accomplished just that and laid aside a nice nest egg. All the best to you!
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I’ve only been a reader for a month but it’s already become one of favorite blogs (and I read a lot of them). Congratulations on your success, it sounds like you deserve it! I’m looking forward to reading more.
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Congrats! I have been a reader since I graduated from college in 2006 and found myself with a lot of student loans. To me it sounds like you really did good for both yourself and your site. I am a big fan of your work, and will continue being a avid reader of the site.
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JD,
I have read your site almost everyday for the few years along with Trent at Simple Dollar. You have taught and entertained me and I feel I have come to know “you” through the content you share. Congratulations on your success! You have earned it.
About your divorce, Thank you for sharing your personal pain. No matter what the reasons, divorce is very difficult. I hope you find the happiness and personal satisfaction you need.
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I applaud you for finally “coming out of the closet” ,so to speak, with your announcement. I am sure it was a load off your shoulders to finally divulge this information to your readers. The majority of entrepreneurs start businesses with the idea of one day selling it. Nothing wrong with that. But it’s not easy letting go. It’s like seeing your son or daughter finally riding a bicycle by themselves and not needing your guidance anymore. Nothing ever stays the same. Change is inevitable. I’am sure your best friend’s death and your divorce made that more clear. In the meantime, the wheel keeps turning. There is sometime right now blogging away in some basement or garage dreaming of one day have the success you’ve attained. Congratulations.
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Wow, I read your column and the 30 comments, come back after mulling it over for a few minutes and lo, there are 90! By the time I post this I’m sure there will be more! You DO have a loyal following, J.D., a following you’ve worked hard to build and that has come because of (a) good content and (b) your authenticity.
Congratulations, J.D. I will continue to try to glean helpful information AND inspiration from your posts, the guest bloggers and from your archives. Keep up the good work!
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Belated congrats.
When the site first started turning from a personal blog to a “business” blog, and staff writers started writing alot more content, I was a little dissapointed. I had just started following the blog, and was annoyed that my new favorite blog was changing. Over time, though, I think the writers have evolved into a nice mix of voices. And if JD posts less, well, as long its quality over quantity, then I think everyone will benefit from that arrangement.
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Good for you! The site was your idea and the result of your hard work so there is no reason to not enjoy the results of your efforts. I am a recent reader and always assumed that you had investors and staff because the site is so professionally done. Knowing the background doesn’t change my opinion of the contents, which is that the articles generally contain useful, practical information.
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I read this article: http://www.doughroller.net/make-money/list-of-personal-finance-blogs-that-have-sold-for-1-million-or-more/
about a month ago and I guess I didn’t put two and two together that it wasn’t publicized/revealed that you sold your blog.
Congratulations on your success! I’ve been a reader for only about 6 months but will continue to do so in the future!
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Jd
You have personally helped me by responding to my e-mails and for that I am very grateful. Your success is well earned and I hope it continues.
JD
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Congrats on the sale of the site!! Quite the accomplishment indeed!!
I must say, to be honest, that I’m glad that the sale went through before your divorce so Kris was able to reap some of the rewards, i.e. a mortgage free house and hopefully some other things.
Along with traveling more, do you plan to do some volunteer work? Give more to charity?
Hope you’re enjoying your financial freedom, most definitely well deserved after all your hard work. Just sad you’re not going to have Kris around to share it with.
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I’ve been a reader for the past year, and I can’t tell you how many times I have drafted questions to get your advice on something, only to turn around and do my own research and have financial discussions with my husband to reach our own conclusions. But drafting the question to you first always helped me organize my thoughts. Inevitably, I would end my “questions” with, “You will probably say that I need to…” and after I finished that statement, I knew what my answer was.
I guess what I’m trying to say is thank you. I hope no one begrudges you success, because this thing that you built is so helpful to so many people, I am glad that you are able to sleep soundly and still do what you love to do.
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Hey JD – I’ve been reading your blog for over a year now and I have used some of your stuff with my clients and I have referred many to your site.
What caught my eye today was the name “Sparky”. There aren’t many of us around so when I saw that he was your best friend and he ended his life so tragically, I just wanted to send you a note and say I am sorry for your loss.
Blessings.
Frank (Sparky) Douglass
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Hey JD. Like Jacob at ERE, you move on in life. Good for you. I’d love though to know though what you got for selling.
It amazes me how people can make so much off a blog. I’ve never monetized my blog and I see others who are popular (blog wise) but struggle financially.
Thank you for the years of great content. There can be no denying that.
But for some reason I do feel like I was a pawn in this whole thing. My thinking was you were the owner and it was a bunch of similar minded people wanting to better their lives. We were all in this together. Now it seems we were in a way used for the grand scheme of someone else.
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Hm. I’ve never, ever considered GRS readers “pawns”. If I had, I would have never stuck around for three years. I would never go out of my way to meet them for lunch and dinner. I wouldn’t respond to their e-mails. And so on. It’s precisely because I do think we’re in this together that I’m still here, still writing, still trying to help people achieve financial success. I’ve been lucky (or blessed, or whatever you want to call it). I feel like it’s my obligation to pay it forward.
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Thanks JD. God bless.
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J.D.
To those that say they feel you havent been honest i say “Go pound sand!” As EVERYONE of us would have done what you did. You were smart in that, you kept control, but at no expense to you…Bravo!
I wish to thank you, I have never commented before, and have only missed a few articles in the last 5-6 years I have been reading. I have too, enjoy the personal stories of you and other readers, that keeps me coming back.
I wish you the greatest of fuures!
On a side note, I also want to thank you for assisting in a very round-a-bout way of getting clean, I had a substance abuse problem and it came down to what do I want to do with my money: an hour of bliss or a lifetime of happiness, I am choosing the latter. thanks and Enjoy your travels another passion of mine!
Be well,
Davey
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WOW
The last couple weeks have been a doozy. I need to revise my comment from the divorce post – I’ve been really impressed with how graciously you have handled the negative comments. I’m impressed.
As for selling the site – I’m also impressed. I’m impressed that you managed to find a way to stay true to something you made instead of just walking away. I appreciate your honesty in telling us just how bad it was. And I’m glad personally that you stayed on. I’m also glad to know that you really did achieve financial success by working hard, creating something great and having someone realize it’s worth and pay you for it. I find that very inspiring. I guess I just wish for you that you could have emerged with a happy marriaage intact.
Count me back in as a loyal GRS reader.
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I just wanted to simply say – Thank you and Congrats on a well deserved achievement!
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I’ll echo the 100+ congrats. You built it and it helps people. It’s ok to profit from success. I hope to do something similar in the future. Perhaps I’ll have “elves” of my own someday!
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Congrats JD – very good news and something you should absolutely be proud of. I’d say it’s definitely inspiring!
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Thanks for all the writing and honesty JD, have loved it all and look forward to continue reading your writing about your evolving perspective.
SUCCESS!!!
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“If they decided that this site would make them more money as a porn site, they could turn it into a porn site.”
Sounds nice. But that would conflict with the get Rich SLOWLY part. What would they put on the site, slow porn?
Just kidding.
Congrats J.D. You’ve earned it.
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Wow! You had me nervous- I thought you were going to reveal that you were leaving for good.
I can’t remember when I started reading… But it was definitely before 2009! A friend on livejournal set up an RSS feed. Been reading the blog through LJ the whole time.
Congrats JD.
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Lots of congrats and back patting on here.
I’m not feeling it.
As someone who owns multiple business of which to compare, your situation is “unique” to put it nicely.
Don’t misunderstand, I would have sold also. But remember there are lots of business where more work doesn’t necessarily mean more income.
And after less than three years you sold. Not getting rich slowly anymore. In fact, the exact opposite. I have a little money also, so I understand the allure.
But I did’t make my money by selling the idea and the image of someone chuggin’ away for decades saving…like the real millionaire next door…so he can too get rich slowly… which turns out to be false because he sold out years prior.
If the financial blog named slowly was authored by one who did it quickly you would feel decieved.
Like I said, I don’t blame you. I would have sold also. But you aren’t the same. The site isn’t the same. Even the name of the site isn’t the same. I would have negotiated to tell my readers at the time of the sale, because that connection is what is valuable.
Sorry man. I like the site and it has real value to many, but you have been lying to your readers for nearly 3 years, and everyone here keeps congratulating you for it.
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I totally hear you., Troy. His situation is very unique. No matter how hard I worked at my business, it did not, and perhaps would never become more than it was. I think that’s where the disconnect lies. He preached Get Rich Slowly, but in reality he Got Rich Quickly and it was more luck than anything. How many people could put the same amount of time and effort into a project and yield the same result?
Still happy for him either way, and I can see why he didn’t disclose this right away. ‘Do what I say, not what I do’.
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What you need to remember is that JD did not set out to get rich quickly — his goal was to use the “get rich slowly” philosophy to get rich slowly, and to use his writing skills as part of the process. The get rich slowly philosophy would have helped JD reach his financial goals in the long run, but it was his writing skills (mixed with a little entrepreneurial spirit) that actually got them done in the short term. Given the terms of the deal he made, I would say he did a pretty decent job of not lying to his readers.
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While becoming wealthy does take time, sometimes people can do certain things to speed up the process. Why do people go to college or start businesses?
Going to college and starting your own business does give people a leg up in the world that they wouldn’t otherwise have. There are legitimate ways to speed up the process of wealth.
It seems that some people are a little jealous of JD’s success, well I say to those people, go and make something of your life. Then we’ll talk. My mom made like 80,000 with her small business and she had to deal with jealous friends and acquaintances sometimes.
With affluence comes resentment and that’s really sad. Instead of being jealous, why can’t we be happy for each other? If your business isn’t doing well then maybe its time to find something else that will give you a better income.
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You’re assuming some of these so-called “jealous” people didn’t work hard if not harder only to fall flat on their faces. The reality is, that IS life.
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Best wishes! You’ve worked so hard and it’s wonderful that you are able to enjoy the fruits of your labor.
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Congradulations for selling GRS and the success you’ve had! Just remember, no matter who owns GRS and how many staff writers or guess bloggers you have, it will not be GRS without you, JD. Ever.
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Woo hoo! Congratulations, JD!!
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