The target is a unique Software and Training Products offering, designed to help solve the various problems that Internet Marketers face, including the creation of content, acquiring quality backlinks (SEO), driving relevant traffic and growing sales funnels. Many of this company’s solutions are offered on an annual subscription basis, but it also offers others that are either monthly subscriptions or one-time payment options. In business for over 14 years, this company has an email database of over 30,000 satisfied clients and over 5,000 active subscribers to its various products.
The Company has gone through significant changes over the last 12 months. New management has driven the company using a laser focused and comprehensively quality-focused approach aimed at sustainable profitability and customer retention, rather than simply looking at top line sales growth. The business model has shifted from targeting monthly subscriptions to promoting annual subscriptions. This has increased Net Income from 39% in 2017 to 66% as of the TTM ending September 2019.
This has also driven customer churn down from 15% to less than 4%. Now that management has “right-sized” expenses, the focus is being turned back to sales and promotion, which, in itself, is completely limited to email blasts to its database of over 30,000 individuals. There is currently little to no other advertising plan in place to drive sales, creating a huge opportunity for a new owner to market via PPC, social media, and so much more.
Established firmly with a sterling reputation in a space whose hallmark is high barriers to entry and a segment in which competitive advantage can be not only hard to come by, but almost invariably fraught with peril due to the nature of the services and products involved, this service provider has prevailed in the face of daunting odds and stands on its own two feet offering a value proposition second to none in this particular arena. This highly attractive business is offered by a highly motivated seller, standing ready to facilitate a fluid, painless transition, willing to remain engaged long-term post-acquisition to assist with training.
This Subscription Model Represented by:
Tech & Internet M&A