WebsiteClosers® presents a Digital Marketing Agency that has firmly established itself among US and EU clients over the course of 7 years. They are a full-service agency, providing staple marketing services such as SMS marketing, UGC for ads, and are in the process of exploring other high-demand services such as SaaS/B2B marketing, paid Meta/Google ads, and recruitment as a service as “mini” add-on services.
Their specialty, however, is their email marketing service, which accounts for 65% of their revenue. Though they have a one-off option, their recurring model is the most popular option and generates $160k monthly. The company generates an average of $250k per month in total, with over 90% of these profits stemming from their recurring services.
The agency currently has 40 active clients, with a 90% MRR and exceedingly low sub 5% churn rate. Their average client stays on for over a year and has an LTV of around 40k+. The company’s consumer base spans a wide range of industries, such as supplements, apparel, luxury services, and furniture.
They further distinguish themselves through a low account manager/project manager to client ratio. While similar agencies might have up to 10 to 12 accounts to person, they typically have a maximum of 2 to 4, improving client satisfaction while reducing their churn rate.
These qualities have made them one of only 34 Klaviyo Elite partners worldwide, a HubSpot partner, and one of 11 agencies on Yotpo’s Email Advisory Board. They also enjoyed a surge of massive social proof through a presentation at Affiliate World Bangkok, bolstering their reputation.
Business Broker Takeaways
1. Optimized Hiring. The company’s HR department can quickly hire talent anywhere in the world at a third or less of the US prices, giving them access to efficient and affordable labor.
This strategy allows them to deliver matching service at a third of the US price while still maintaining 70% gross profit, giving them an edge over their many competitors in the industry. This edge gives them steady profit margins ranging from 20 to 30%.
2. Low Workload. Current ownership spends a mere 5 hours per week average on their responsibilities. This workload primarily consists of them taking part in a once a week call with directors where they add support if necessary.
A buyer could use their light workload to their advantage and focus on scaling, and, if they wish to further reduce their hours, they could pass their duties onto an experienced COO or even an owner operator.
3. High Ranking. The company has recently started advertising on Google and targets their 8,300 subscribers through an email marketing campaign. Their SEO plan, which consists of paid and organic links, keyword research, and other careful strategies, has also proven fruitful, leading to a top organic ranking for “best email marketing agency” and other similar terms.
Scale Opportunities
This agency is already making significant strides to grow, having expanded into several highly desirable services and optimized both their financial spending and account management. However, there are still many ways a buyer could further elevate the company.
A buyer could see straightforward growth by continuing to test their Google ads for email marketing, and by further developing their SaaS/B2B marketing service. The latter has immense potential, as there are far fewer quality competitors than eCommerce marketing to contend with.
From there, they could stack UGC creatives for those that run ads, as the company’s pilot Meta test already saw strong results. They could draw attention to this service and others by attending more live events, as the one the company attended in December of 2024 was ROI positive.
The company could also restart cold email efforts for SaaS/B2B and their email marketing services and optimize their fees and software again to make operations more efficient.
Conclusion
This acquisition has been carefully refined and optimized over the years, and their focus on email marketing has allowed them to rise as a top provider in their market.
While the agency has taken many steps to grow and expand into other high-demand services, a skilled buyer could take their momentum and run with it.
