Website Closers® presents an eCommerce brand that has, over the course of nearly a decade, risen to the top of the thriving digital fitness industry. The brand first entered the Health & Wellness market in 2016, when they started out as a seller of niche fitness equipment, such as steel maces, resistance bands, and kettlebells. Their focus on more unconventional products led them to attract favorable media exposure, especially within the steel mace market, giving them the traction they needed to rapidly develop a solid brand reputation and dedicated customer base.
While the brand still retains their status as an eCommerce company, they recognized the potential of digital content and ultimately made the decision to shift towards digital content and products. This move significantly increased their website traffic, shifted their revenue model towards display advertising, and, after introducing a tailored sales funnel and professional fitness programs, led to a threefold increase in digital product sales.
The brand now offers 19 proprietary digital products, with their top sellers including the Hypertrophy, Strength, and Fat Loss programs. They average between 150 to 200 orders every month, with an Average Order Value (AOV) of approximately $30 each.
Business Broker Takeaways
1. Diverse Revenue Streams. The company generates their revenue from three primary sources: display advertising, eCommerce, and affiliate marketing. Display advertising is their key source of profit, generating 67% of their total sales. This is followed by affiliate marketing at 20%, which uses multiple affiliate platforms such as Avantlink, Amazon, Impact, and Shareasale. Finally, their eCommerce channel contributes to 13% of their total sales.
Their diversified revenue model ensures continued stability and growth potential and reduces dependence on any single income source.
2. Excellent Marketing Tactics. The company has a strong marketing strategy that centers around creating high quality content that ranks well in search, which they supplement with videos on YouTube and email marketing tactics. Their blog’s growth can be traced back to their consistent production of high-quality, well-crafted posts.
They initially established their authority with niche topics, and, from there, branched off into broader fitness-related content that features both high-volume and long-tail keywords. Their blog now has over 1,500 articles. Their thorough marketing strategies have given them roughly 100,000 email subscribers, 70% of which are active, 29,000 social media followers, and an average monthly visitor rate of around 800,000.
3. Strong Position in Market. The brand has used the past 7 years to cement their position in the digital and virtual fitness market, and it shows in their strong YoY growth in revenue and position as one of the biggest authority websites in the space. Their revenue is stable year-round with low overheads, and their massive catalog of expertly written blog posts keeps customers looking to them for guidance in their workout routines and attaining their ideal bodies.
Operations
Current ownership tends to put in 10 to 15 hours combined to run email marketing, lead capture, and optimization, with 1 full-time employee and 2 part-timers managing the rest of the company’s operations. They use third party contractors for web development as needed, fulfillment (which will be phased out by the end of June), and content development.
Scale Opportunities
The brand is full of potential scale opportunities that could, with a driven entrepreneur at the helm, bring them to the next level. One low-hanging fruit would be to add to their product roster with additional health related products, such as new lifting accessories to complement existing products, expanding their range of fitness equipment, and launching a line of dietary supplements.
The company could also launch a subscription-based service to create a recurring revenue model with significant growth potential. They could achieve this by offering exclusive content access like on-demand workouts and nutrition guides, personalized coaching, and additional content.
Once these new products and services are in place, they could draw attention to both them and their existing offerings with improved marketing. They could invest in short-form video content on sites like TikTok for enhanced social media presence and engagement, and create first-person review content to produce detailed reviews, driving affiliate sales. These tactics would also come with the benefit of boosting their affiliate revenue, bolstering their most profitable revenue channel even further.
Conclusion
This flourishing brand has made a name for themselves in a highly evergreen market, and are in a great position to take advantage of this upward trend with the right strategies in place.
