Website Closers® presents a Full-Service Revenue Optimization Agency that helps eCommerce Brands increase sales and maximize ROI on each customer by adding a Subscription Platform on their DTC Websites. This platform develops continuity and loyalty for new and existing consumers.
The packages offered by this agency, personalized to each individual client’s unique needs, enhances advertiser outcomes through strategic conversion rate optimization, increased revenue per session, higher average order values, and improved customer lifetime values.
The agency offers their services to mid-sized eCommerce stores with enough ad spend to see anywhere between 100 and 200 sales per day. The agency has an Average Order Value (AOV) of roughly $60,000, an average Lifetime Customer Value (LTV) of $2 Million per client (and growing), and an average contract length of over 1 year. As they exclusively work with repeat orders, their Repeat Customer Rate is 100%.
The business is doing very well, growing at a 15% clip in the TTM (June) over 2023. The sky is the limit given that the total addressable market (TAM) for eCommerce Businesses that need subscription options is well over 25 Million, with over 14 Million in the US alone.
Business Broker Takeaways
• Proprietary services. The agency’s custom built checkout process boasts a 60% conversion rate, with their partners’ customers typically staying subscribed for an average of 5 months. The partners themselves enjoy Average Order Values (AOVs) of $31 to $34. The brand’s effective services encourage clients to return to them by turning one-time sales into long-term revenue streams, maximizing their Return on Ad Spend (RoAS) and significantly increasing their overall return on investment (ROI).
• Healthy Organic Traffic. The strength of their services has led to many of the brand’s new clients being generated through word-of-mouth referrals from past partners. They also regularly attend trade shows to promote their brand and build their reputation among their core audience. They also have affiliate contracts with owners of eCommerce communities that are interested in potentially sending them business. However, very little effort has been put into Sales & Market initiatives, which a new owner could develop in spades.
• Active Planning. The agency is currently working to scale their marketing campaign for greater effect. They are just starting outbound tactics, and are looking into cold email targeting Shopify owners, investing in LinkedIn content marketing in Q3, and are planning to explore paid marketing across Google, YouTube, and Meta. They are also looking more into affiliate partnerships going forward, which, combined with their other planned tactics, will significantly improve their number of potential clients.
Operations
Current ownership spends 30 hours per week on their primary responsibilities, which consist of leadership, vision, and helping with marketing and sales as needed. Many of the agency’s key operations are tended to by their director-level employees, and as they are hiring a VP/COO, the new owner’s workload will likely be reduced once the VP is trained for their role. The agency’s staff consists of the following full-time workers:
• An operations director
• A human resources worker
• A CTO
• A business development director
• 7 developers and assistants
The brand’s development and design are handled by third-party contractors.
Scale Opportunities
While the agency is already working to grow the business, there’s still plenty of room for an ambitious buyer to step in and hasten the process. They could add additional Digital Marketing Services to their service offerings to broaden their appeal among potential and existing clients. They could also hire an outbound sales team to locate and sign eCommerce Sellers with a minimum of $10 million in sales to acquire more valuable clients.
One of the most effective strategies that a buyer should consider, however, is continuing to improve the agency’s current marketing strategy. They could add more tradeshows to the docket to gain attention, invest in an SEO campaign on their website, and establish an active presence on social media to expand their organic traffic flow. They could also create their own affiliate network to push the agency at scale. A buyer could then supplement these tactics by investing in paid media campaigns.
Conclusion
This deal provides a unique offering for a buyer, with an automated onboarding process to make their service more effective, strong organic traffic, and a capable team. They would be an excellent addition to any ad agency or business that works with many Shopify partners and are actively working to grow beyond their current scale. Current ownership predicts that in the next 3 to 6 months the business will be extremely self-sufficient, allowing them to operate with little direction from ownership.
The ideal buyer would know their way around a marketing business and digital agency and be able to use their existing relationships to promote the agency’s services.
