Website Closers® presents an Award-Winning, High Margin, Recurring Revenue Digital Marketing Agency that needs zero ad spend to grow their client base and revenue. Proof can be found in the 40% increase in profit they have enjoyed since 2021.
They serve a highly diverse client base that includes local home service businesses and eCommerce businesses alike, and currently have over 45 clients signed up for their services. They offer local and eCommerce marketing options, which consist of staples such as paid social, paid search, light SEO work, creative development, and email & SMS marketing.
The agency enjoys high margins and strong recurring revenue, with clients paying month to month for their services. Despite their not locking clients into long term contracts, they have very high client retention rates compared to the rest of the industry, testifying to the quality and effectiveness of their services. Their average client length with the agency is 20.38 months in recent years. Their average contract value for local marketing clients is $2,877 per month, while their average for their eCommerce marketing clients is $5,273 per month.
The agency boasts an array of certified marketing partnerships to their name. They are a Meta Business Partner, a Google Premium Partner, Klaviyo Gold Partner, Shopify Partner, and Triple Whale Gold Agency Partner. These qualities add to their appeal for clients searching for a reputable marketing agency to do work with them.
Business Broker Takeaways
1. Dedicated Clients. The agency’s staunch client base is the product of their quality services, polished team makeup, and strong industry knowledge that they’ve earned through working in the space for several years. Most agencies focus on the numbers the ad platforms report, which doesn’t always align with profit.
By understanding what truly matters to their clients and optimizing their creative process, the brand has earned substantially better retention rates than the industry average. Their clients and stable subscription model have given them Net Profit Margins of 54% and 13.6% year-over-year (YoY) revenue growth.
2. Lightweight Marketing Campaign. The agency generates nearly all their clients from referral sources, with no paid marketing to speak of. These referrals are primarily generated by existing clients, with some additional clients being directed to their services by a CRO partner they have a referral agreement with. They also run some limited social engagement via their personal Twitter accounts that are active in the eCommerce space to increase their organic traffic.
Additionally, they have some influencer clients they’ve worked with for experimental promotions in the past, but they rarely tap into them to do so. Many of these clients would likely be willing to run more promotions for the brand in exchange for free month(s) of service.
3. Optimized Operations. The founders have carefully crafted the agency’s business operations with maximal efficiencies and workflow optimizations, which will likely make the transition process easier on a new owner. Their creative process allows them to pump out new creative content for clients every single week at a low-cost while maintaining quality, and the company themselves can be operated from wherever the buyer pleases through their remote capabilities.
Staffing
Current ownership is primarily divided between several leadership roles, with these roles consisting of director of paid social, director of paid search, and director of email. The brand employs 3 W2 employees who act as a senior email strategist, an email strategist, and a paid social account manager. They also have 20 long-term contractors spread across the following positions:
• Paid Social Account Lead
• Paid Social Media Buyer
• Paid Search Media Buyer
• Creative Strategist
• Designer
• Virtual Assistant
• Creative Assistant
• Developer
• Email Support
Scale Opportunities
An ambitious buyer will be pleased to find that this is a highly scalable business, with a few easy opportunities to utilize: the first of which being their price. As the agency’s services are currently underpriced, a buyer can quickly boost their profits simply by having clients pay more for their offerings. They could further increase their profits by diversifying their client base to target new demographics, such as larger businesses.
Building upon the agency’s marketing campaign would be another great method of scaling, given how straightforward their current advertising has been. They could invest in paid marketing, or generate direct sales via email, cold call, and direct mail to the local businesses using their existing track record of success. A buyer could also investigate partnering with their influencer clients to promote their brand on popular social media accounts.
Conclusion
The agency has rapidly established themselves as a reliable option for clients in need of strong marketing services. Their success is reflected in the stickiness of their client base and their strong recurring revenue, and the right buyer will find no shortage of growth potential in the foundation that’s been left for them.
