The $6.5M OnlyFans AI Empire For Sale

0:00Hey, Michael here. Welcome to Acquisitions Anonymous. Today's deal was a bit crazy. We had our guest Mike Botkin here, who you may know from Twitter fame and overall internet badassery. and he was great as we dug into an Australian company that just seemed really hard to understand and also crazy at how profitable it was. So dig into this one with us and let us know what you think of it in the comments below. Talk to you later. We'll start Acquisitions Anonymous. Hello, another episode of Acquisitions Anonymous. We don't have 100 % beers anymore. I'm thumbs downing on just the plus inventory. Hey everyone, I just want to tell you that this episode is brought to you by VeriVend.

0:41which is the only platform purpose-built for independent sponsors and private market investors who want to move faster and eliminate friction. VeriVend is cool because it combines investment management and secure instant payments into one platform. So that means capital calls, deployments, and distributions, they all work like Venmo. One-click real-time transfers with no transaction limits and automatic reconciliation. So from raising capital to returning it, VeriVend handles it all. Deal marketing, data rooms, KYC and accreditation for your investors, signatures, capital flow, dashboards for your investors, and even fund administration, accounting, and taxes.

1:18So whether you're raising a single deal or managing a full fund, VeriVend gives you the speed and confidence to execute all in one single platform. So you can check it out and learn more at verivend.com. V-E-R-I-V-E-N-D.com. How's everybody doing? Mike, welcome. Thanks for having me, guys. I was hoping I would get an invite when I said I'd make fun of Mills on here. So I'm glad I, I'm glad that was the trigger. That's the cost of entry. That's all you needed to say. Well, we are not doing a ton of guests these days. So we're so excited to have you here. Do you want to give a 30 second intro yourself so people can know what they should expect from you?

1:55Yeah, sure. So in 20, before ETA got super popular, in 2019, 2020, late 2020, I bought a small residential landscaping business doing under million bucks of sales and we got pretty lucky and grew that thing and we did six acquisitions post that and i ended up selling it to a private equity slash strategic in late 2023 and since then i've been working on a new uh roll-up in the water services space and where is that it's in austin or it's in dallas the current uh business is in dallas super cool and what is what aspect of water services? Yeah. So think of plumbing. So plumbing works on the wall of your house inside.

2:42We work on the wall of your house outside. So it is primarily water wells and the treatment and service and replacing and repair the pumps and the water treatment and filtration that go from wells inside your house. Amazing. Okay. Sounds really good. It's very niche. Very niche. Well, that's where there's riches in that i heard okay so background for you mike we have a group chat with the co-hosts and uh heather and i got emailed this deal and heather what was your first reaction when you got this i said this is crazy and i meant it so we're going to talk about today right and this is mike's first time seeing it i wouldn't preview it for him it's just like you're gonna you're gonna respond live on air got it i'm very excited I'll pull this up and I'll pitch you guys on this deal.

3:35I only read the first two pages. And you just stopped and said, this is it, we're doing this? Well, I sent out a text to the group in all caps that said, emergency pod. Like, we got to get on right now and start talking about this. So that's how we ended up talking about this company called Banks Management. so it is it says here it is listed as an ai enabled only fans talent management agency they are doing four

4:11you're you're gonna stop chuckling when you see these numbers mills yeah you're laughing i've already i've already signed the nda you laugh it now but you're about to see some some money being made. So revenue is 4.5 million. They're selling it and they're asking 6.5 million for it. EBITDA is 1.46 million and the multiple is 4.4 times. And Heather, this is kind of a unique thing. It looks like somebody did this on Microsoft Paint. I'm not sure what that is, but it's like a kind of an infographic kind of cartoon style, but at least it gives us the numbers we need to know up front. I like the fact that they've got the multiple there.

4:50It's nice. I don't have to ask Bill to do the math today. No, we don't need him. All right. So this is a 15-page teaser, which is great. So it's located in Australia. It's founded in 2023. And they basically do, man, this doesn't really say what the business does that well. I think there's some more info because I did scroll through it before. I found it. It's like, I thought I saw in here somewhere about it being an OnlyFans agent for non-human AI. They're trying to pivot the business. That's right. Their current core business is they are a management company for OnlyFans. I think you would say creators.

5:37Okay. I found that what it is. Okay. Banks Management is a leading digital talent management and e-learning agency specializing in highly profitable, scalable, and innovative OnlyFans management solutions. Originally founded in early 2023 as a traditional OnlyFans management agency working with human creators, it quickly scaled to$100 ,000 Australian per month in revenue. In Q2 2023, Banks Management transitioned to an e-learning and licensing model to help others launch and scale their own agencies. By early 2025, it evolved further to focus on building and licensing advanced AI-generated model systems for OnlyFans.

6:18Banks Management intentionally targets the premium end of the market, with an average order value exceeding$23 ,000 per client and significant potential for lifetime value expansion over multi-year relationships. By combining proprietary AI content generation systems with proven licensing frameworks, Banks delivers advanced automation and scalability that no direct competitors currently offer. This strategy enables the agency to attract the most ambitious high-value clients while maintaining industry-leading EBITDA margins. In the first half of 2025 alone, Banks achieved over$5 million in Australian dollars trading income, showcasing its ability to scale profitably with robust efficiency.

6:57banks management serves entrepreneurial digital professionals in the usa australia and the uk who are seeking automated income opportunities through only fans management the agency's business model is intentionally structured for front-end profitability typically retrieving a two-to-one return on new client acquisition costs while supporting clients to five to ten times lifetime value over a five ten five-year relationship they advertise via meta with direct support from meta representatives ensuring optimal performance. The process from ad to sales call streamlined and battle tested over more than two years of consistent profitable growth.

7:30So I'll pause there. So Mills you think you have figured out what these guys do? So I think that they I think that they spend a ton of money on customer acquisition and then they they have I think there's something in here that is on page let's see. It's page eight. They have 376 active customers, but the revenue per customer is$61 ,000. So you're an OnlyFans creator and it's very time intensive and labor intensive to respond to all the messages that you get. And so you hire that out, you delegate it. Because if you're just responding to a text message from somebody, even a spicy text, they don't know if it's you or not.

8:21and what's crazy to me about this is the creator is paying them on average 61 000 a year so the creator's got to be making i mean many multiples of that the like the tam of this i've never subscribed to only fans but i it's incomprehensible how big this is mills you knew the flow of how everything worked very well. I was going to wait. For those of you keeping score at home, Mills made it three minutes before making sure everybody knew. He knew this is all theoretical knowledge. You can check my credit card receipts. I'm in the clear here. But this is staggering, isn't it? Do you think that they're just doing the social media type management of just messages and stuff?

9:12Or are they promoting the channel? in some other ways. Let's see if it says anything about that. Yeah, I feel like I'm a little confused there and I'm also confused on, are they a platform for other companies to use to manage OnlyFans creators? So they're a platform for others and they are managing their own creators as well? I feel like they said that at some point or they said something that made me think that And I'm just not 100 % sure what we're looking at here. So they say that what sets them apart from competitors is they benefit, clients benefit from structured proven systems that enable fast setup and scaling, reducing time to market and maximizing profitability.

10:03So it's automated. To me, it's a platform to automate it because they say e-learning. so they're saying look like plug into our system and we'll teach you how to get our automations working so you know that's i feel like that's part of it it's not that they're necessarily humans doing this but they're using ai and they're they're attracting only fans creators teaching them how to use it and plugging them into their platform that's what i'm guessing yes except that i think they're trying to transition to the ai centric model away from I mean, and this company's only been around since 2023. Yeah.

10:40But they talk about having more of like a human-centric model right now, but they're trying to move to the AI model. I see. Mike, that makes sense. Yeah, just a few thoughts. One, if they started in a normal traditional agency model and they're shifting already, either it's because the agency model isn't working or they're trying to be first movers on the AI stuff, which I would assume would be like, I don't know. the email platform you guys use, but like I use Superhuman and it will suggest replies to me via AI tools. So I'd be curious if that's what this is, like mills, hypothetically messages, you know, an OnlyFans model and the AI suggests a reply and is seamless for the client to reply to that um and then i was also surprised that the average revenue of 61 000 per customer seems seems actually fairly pretty high and how are they chart what just the economics of that so i went back to to slide number five in this deck and i think they started as an agency that was a traditional only fans management agency which means like you're the manager and your talent is online, right?

12:01And you're managing there and you're doing all the replies and stuff like that. And then I think what they did in Q2 2023 is they transitioned to this model where they started to help other people launch and scale their own agency. So that was their agency 2.0. And I think what they see is that AI is coming for OnlyFans. I don't know if you guys saw, but OnlyFans has been quietly shopping itself to try to sell despite being enormously profitable. But I think they see that coming and they transition to, okay, you own a talent management agency. We are going to sell you the AI model stuff so you can be AI ready to create AI generated adult content for OnlyFans.

12:46That's what I think is going on here. That now makes sense. Now that does tie it all the weird things that I was reading together. I think you got it. So this is like version three of this business. since 2023, which is not that surprising. I mean, it's a very fast changing space and it's still, I don't know when OnlyFans started, but I would think that these service providers popped up pretty quickly and then they had to figure out how to iterate. And there's like no book written on this. And if you buy it, how many times are you going to have to pivot and change in the next three years? Are they selling the entire management?

13:21So the original version one of them, version two, and now version three, does that make up their revenue mix? Not clear. So they, May 2023, they licensed, they started their licensing program that people wanted to license their toolkit and their e-learning to run their own agencies. And then they did that, and now they're pivoting to AI models. Does it say what the back end is like? And no pun intended. Sorry. Canceled. canceled um do you mean like the technology stack or do you mean like how the revenue model works well i think yeah i think ai is such an overused phrase um especially in a scenario like this where they're basically they are from what i'm understanding as well licensing the licensing it well what is it is it just a plug-in is it do they have anything proprietary to it like you're going to spend four and a half million bucks to to do this what are you actually getting uh you're getting the opportunity to spend 63 of your revenue on meta ads do you see this i'm sorry i just scrolled past let's try to look for the answer to your question their expense breakdown is 63 meta ads so and this is like a franchisor almost yeah i think that's that's how i would think about it.

14:48It's for, they are selling a service to people who want to start their own OnlyFans talent management agency. Does it say what their cut is? Yes. Yes, yes, yes. That was up here on slide number. 20%. Was it 20 %? So they, it was 80-20. So they do 80 % front-end licensing fees. And that is just a license of their package. So set up automation tools and support. And they have VAs that help with that. And so they charge people these front-end licensing fees. And then there's a back-end MRR profit share. This is genius. Did you see those three pricing tiers, Michael? $15 ,000,$50 ,000, and$100 ,000?

15:28$100 ,000. Wow. And that's USD? But those are agencies. So their customers are really, the 376 customers are not really only fans creators. They are agencies, right? Is that what we think now? That makes sense. Aspiring agencies. So this really is a franchisor thing then. Yeah. Yep. I'd say that's the closest to it. Yeah. And this is a wacky, crazy business. But to your point, Mike, like, what are we buying here? You're buying technology that can be replicated, I think is kind of what Mike was saying, right? Because you probably can't, all technology is, I think, kind of in that category these days, is someone else can come along and build what you built slightly different or better as AI continues to advance and progress.

16:14So you really don't have a moat there probably, or the moat is very tiny. And then you've maybe, you're buying the customers, the 376 agencies, and your ability to keep them and keep attracting more, I guess. How many agencies are there? I would love to know the TAM. I'm actually like kind of blown away that there are all these OnlyFans agencies. I'm like trying to wrap my head around that. about like being adjacent to a really, really expensive transaction, like doing home staging when you're selling like million dollar plus houses. Right. And it's easy to kind of piggyback that expensive transaction.

16:57In this case, the TAM, I had to Google this, but the TAM for OnlyFans or the revenue was$6.6 billion. So there's this whole like ecosystem around it, right. Of people who are like, how do I get a bite of that? And they say on slide eight, that, that their client base is within the OnlyFans management niche. So there, I mean, yes, to your point, Heather, I don't know. Are there a hundred OnlyFans management companies or are there 10 ,000? I, I don't know. Hey everyone. It's Bill. And I want to tell you about maybe the most exciting sponsor we've had in a long time on the pod. It's called CapitalPad.

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19:06Okay, so out of 5 ,000, they've got 376. And so I would really want to know what the other 4 ,700 or 4 ,600 agencies out there are using. Is it proprietary? Could they easily just build their own little systems to manage? Or is there another competitor to this where there's a platform out there that they can use? That would sort of be my next thought is who is the competition for something like this? Because there's a lot of agencies that they don't have. Does their EBITDA margin, Michael, you were in software, does their EBITDA margin seem low to you? For an agency? Correct. Given what they're spending on advertising and marketing, Mike, I think that seems pretty much where I'd expect it.

19:51I'm actually kind of surprised it's as high as it is. Okay, so in the SaaS world, which I'm not sure this is how that would be described, but especially in the franchisor world, something that's, I think it's 30 % EBITDA margin trading for four times in such a large TAM as Mills pointed out. Does that seem low to you? My guess is that they are getting ahead of the AI concerns around OnlyFans. I think that's, as they've talked to people, people have been scared off by, it's just a matter of time before OnlyFans gets disrupted by people auto-generating adult content. And I bet these guys are pricing it as best they can, given that's the main concern in the market.

20:38and that's why this i think the reason i could tell they get it is this whole thing is just like oh we're ready for the ai challenge we're going to help people do that something that i always ask you know companies that are on the kind of uh up into the right and they're selling for a lower multiple that just doesn't pass the sniff test is they they what they mean when they price themselves this way is that they cannot make that much money over the next four and a half i think price at 4.4. So over the next four and a half years, they cannot make in cash flow 1.4 EBIT each year. Or the risk or effort to actually execute that is higher than what a buyer would be led to believe.

21:22Because if this is a really high margin business and everything's up and to the right and, oh, it's about to come and the cash is just going to rain from the ceiling, then you would not you know put this out of four and a half multiple so what you're saying is if you're getting ahead of this yeah we actually what's six we actually don't think we're going to be able to make six and a half million dollars of free cash flow over the next even six years like and that's just kind of a an offshoot philosophy or thinking i always have with where things are marked at is it's really a signal especially when it's a lower like now Now, if this was$65 million price range, that's generational changing money.

22:02Six and a half is too. I don't want to be disrespectful. But in a business like this, a software business, agency business with 25 % to 35 % EBITDA margins, you can't make$6 million over the next six years? And what was the market cap of OnlyFans? $10 billion? And this was 2023. Oh, the revenue. Sorry. Yeah. Their 2023 revenue was$6.6 billion. And they give to their creators like what, 95 %? Yeah, I think it said on average it's like 80%. Okay, so if agencies are taking 15 % to 25 % of content creators, say 50 % of that revenue goes to content creators that have agencies and agencies take 25 % of that.

22:43So it's a billion dollar TAM for agencies. That was very napkin math, off the cuff math, by the way. Well, I mean, one of the other things I just found on here is the founders started the business. They have a GM who's running the day-to-day, and they're mostly hands-off with the thing. So this is not, it doesn't appear to be an owner-operated thing. That could affect some of why they're pricing it the way they are. They're just ready to de-risk it. The price reflects the amount of uncertainty, right? If this were incredibly stable in this sleepy corner of the agency services subsector that wasn't OnlyFans and wasn't ripe for disruption and change, yeah, it would probably be really underpriced.

23:35But because the business has already changed three times in two years, maybe three years at the very most, they're pricing all that risk in. Have you guys ever seen a company from this merge? Their website is GoMerge. I've never seen it before. Are they a U.S. brokerage? Yeah, I think they are U.S.-based, and their whole tagline is basically specializing in agency, consultancy, and digital-first deals under$50 million. Yeah, I think if I was ever going to subject myself to being a business broker, I would niche down hard. That seems like a much better life. I like what they're doing. It looks like they vet kind of your, if you want to be a buyer and get on their list, they vet it somewhat.

24:20And then they also offer, which I don't really love, like a tiered service. Like you can just browse their listings, but you can also consult with them for M &A advisory work and like capital sourcing. So I did chat GBT, how the business model works for the agencies themselves. And they typically take 30 to 50 % of the creator's revenue. So you have the talent, she, he is out there, mostly she's. And then the agency is doing all the backend work for them. They're doing account management. They're doing chatting with clients. This is another reason why OnlyFans is kind of sketchy. You're really, really chatting with some dude in a foreign country with Harry Knuckles.

25:00that's what's going on uh they do marketing promotion content strategy analytics reporting and content production in some cases film editing and shoots and stuff like that so and they take 30 to 50 percent of the revenue from the creator i wonder how much of their revenue comes from their new version of pricing because they have the upfront pricing which is not cheap like whether it's 15 000 or 100 000 that is not cheap that is very expensive and then if they're then taking just say 25 % of the content creators, you know, monthly revenue or however OnlyFans does it, their total revenue is only 4.5 million bucks.

25:38So I'd, you know, it just, it's harder to do math without knowing that split, but I'd just be curious. So I think the scenario in their pitch is, Mike, you're an OnlyFans manager and you have 20 clients right now. And, you know, you have an army of people, mostly like a remote workforce who's helping respond to all these client needs. Your clients are the creators. And in order for you to scale, it's going to be very labor intensive. You're going to keep having to add headcount. We as banks can help you with client acquisition because we have this proven strategy. You pay us$15 ,000 upfront and we'll start to plug you into our system and we can reduce your labor costs and we can help you scale.

26:20And that's the the proposition here. You get support from a small virtual assistant team. That's what it says. That's the tagline on there. But you're automating stuff. I think their platform would automate the stuff that you might have otherwise had to hire people to do, I think. Which, like, let's just say best case scenario, that is a very fragile balance. Like if you're in 3PL, right, and things go wrong and you lose packages, like people scream and yell at you. If you're an OnlyFans creator and you're hiring a management company and then the management company has delegated to some AI model that all of a sudden, instead of responding in the right way, is responding in the wrong way.

27:01Like this whole house of cards could come down really fast. Well, plus the revenue model is totally 80 % upfront one-time licenses. And then you get a 20%, then they're making 20 % as part of their profit share. It's too young to know about customer churn too, but I think what we're saying here is churn would be high, most likely. And that's why they're spending so much on ads. Yeah. By the way, they list one of their moats as, we spend more on meta ads than anybody else. It's very scuff-tish. But to your point, Mike, I think this one-time nature of the licensing fees is why it's tough to equate this to a software business or recurring revenue business, because this is mostly just a one-time agency business where they're selling, basically, they use the word e-learning and stuff like that.

27:53I recall seeing one of these Start Your Own OnlyFans agency ads on Facebook at one point. By the way, it's been totally replaced by Alex Formosi and Cody Sanchez ads for me. By the way, Alex has a new book, in case you're interested. I've seen it 45 ,000 times on Facebook ads. But I think that's precisely this. It's like, oh, start your own OnlyFans agency. Give us$15 ,000. We won't give you the toolkit to do it. The one thing I could see that's maybe helpful about this is that there could be high switching costs for the OnlyFans managers, right? Like if they've adopted this system and even if there's high upfront cost and low kind of recurring and they get two years down the road and they decide, hey, you know what, somebody better than banks is around, there's probably going to be high switching costs associated with that.

28:46Not to mention, there's maybe hopefully some kind of like installed base, you know, of all that, like machine learning and all of that data that maybe would make it difficult for the managers to switch. Yeah. Well, we have not commented on the fact that nowhere on this listing, does it say SBA pre-qualified? Heather, what do you think? it is not no we cannot get any kind of traditional financing i won't say what i'm thinking about you know these agencies what they kind of are akin to in real life why don't you go ahead and do that because we need to each rate the deal now uh well i mean you're you're serving uh professionalized OnlyFans pimps.

29:31Yeah. Right? And so, Heather, like, on the, like, SIC codes of things that are... The SIC codes. I should have said it that way. But... Or the NAICS codes, too. So there's blacklisted categories, vice businesses being part of them. Like, you can't use SBA debt for, like, a payday lending business. Or a casino or something. adult content is included is included on that list of no-goes yeah but but would this be considered that because you're not your client isn't actually the adult content it's a management company it would get there i mean you know the as soon as they describe you know who your customer is they go nope i don't think so we're not doing this also banks are very very careful about reputational risk.