Website Closers® presents a veteran Digital Marketing Agency that has been providing premium services to their clients for 37 years. They offer around 40 services, which includes mobile app development, content management, creative services, website application development, and maintenance. They have a well-earned reputation for fast response times and adaptability, which lets them tackle whatever clients throw at them.
These qualities have given them zero client churn, with many of their clients having been with the agency for over 20 years now, and an Average Contract Size of $622.58.
The firm primarily serves the Not-for-Profit sector, with clients in that demographic accounting for 90% of their total sales. These clients include Medical Associations, Professional Associations, Trade Organizations, Government Organizations, and Charities. The rest of their sales mix is generated by law firms, which offers them the potential to increase their revenue by further targeting this client base in the future.
Business Broker Takeaways
1. Stable Year-Over-Year Profits. Their clients are fiercely loyal, as evidenced by their low churn and high retention rate. This, coupled with the firm’s monthly and annual contract length options, has given them steady year-over-year (YoY) profits.
2. Strong Organic Traffic. The agency relies heavily on organic traffic to find and attract new clients. Their website features standard SEO practices to boost their search engine ranking, and the rest of their clients are generated exclusively through their glowing word-of-mouth client referrals. A buyer could use this as a springboard to grow the brand by establishing stronger organic marketing tactics, and/or by investing in a paid advertising strategy.
3. Established Team. Their services are provided by a 5-person team of full-time contractors. This team is familiar with and can execute on every service offering, any piece of software that the agency has developed, and all the clients the agency serves. Staff members communicate directly with the client throughout the service process and are paid fixed monthly retainer fees.
Operations
The brand currently has 2 owners. Their tasks are made up of the following:
• Client communication
• Writing cost estimates
• Coordinating tasks with developers, designers, and content managers
• Business Administration (Payroll, banking, bookkeeping, etc.)
Scale Opportunities
There are several notable opportunities that an ambitious new owner can use to scale the agency. While current ownership is already taking steps to grow through the development of their new HOA/Condo Corporation Management software package, which will likely add to their sales mix and extend their appeal among new and existing clients alike. They also regularly add upgrades to their Non-Profit Association Management software package to make it more attractive.
A buyer could make the most of this new addition by expanding the types of Not-For-Profit clients that can use their services and by growing their professional services sector. The latter strategy will be useful for diversifying their client base and growing the pool of potential consumers that the agency can market to.
One of the most effective scale opportunities that can be pursued is an investment in advertising and marketing, as they exclusively gain clients at the moment through organic means. They could start by attending various conferences and trade shows, specifically those in the not-for-profit sector, to publicize their brand among their key demographic and strengthen their reputation.
They could also improve their digital presence by investing in a paid marketing plan. If a buyer is interested in improving their organic tactics, they could work on developing their email list for newsletters and promotional purposes, polishing their website’s SEO, and potentially setting up accounts on social media sites to strengthen their client/company relationship.
Conclusion
This seasoned veteran of the marketing industry has been offering top-notch service since their launch in 1987, and it shows in their excellent services, loyal client base, and dedication to continually improving and adapting to their clients’ needs. A buyer who knows how to construct a strong marketing plan would be the perfect fit for this acquisition and would be able to easily take this brand to their next stage of growth.
