Website Closers® presents a Software as a Service Business that has developed a large client base for their custom-designed software, which was built from the ground up to enable their clients to boost eCommerce Store Revenue and Profits by converting one-time buyers to Recurring Subscriptions.
Various SaaS Solutions have become important tools in the eCommerce industry, and it’s estimated that as many as 80% of online businesses use one or more SaaS subscriptions. This company went a step further with an improved version of what competitors offer … plus a lot of unique features built in. That includes functionality for management of customer subscriptions, orders and mass fulfillment, a fully customizable checkout to match the client’s brand and automated integrations with popular systems such as Google Analytics and popular social media sites.
While the company generates most of its revenue from a percentage of additional sales they generate for their eCommerce clients by enabling subscriptions for them, they have additional revenue sources that include setup fees, increases for international setups, transaction fees & fees from fraud alert services.
Clients have demonstrated an exceptionally strong commitment to this company, which has a rock-bottom low churn rate of less than 4%. Once clients register, they become long-term customers, giving this company a thriving Monthly Recurring Revenue (MRR) model that a lot of other companies simply can’t match.
Another key aspect of their growth has been the complete absence of an advertising budget to drive sales. The company continues to enjoy steady growth, simply from referrals. The company has relied entirely on word-of-mouth referrals from their clients, and their sales remain steady throughout the year.
That kind of growth is not only impressive, but difficult to achieve. The company has a few tremendous scale opportunities available as low hanging fruit by simply investing in a digital marketing campaign that ranges from PPC ads to email and social media marketing, use of influencers, video marketing and also by developing their affiliate network.
This business is certainly operating in a fast growing and highly in-demand niche space. B2B SaaS models are projected to reach $623 billion by 2023, a stunning 18% growth rate, and SaaS is the largest segment of the world market for public cloud services.
As older systems become increasingly antiquated, SaaS companies have proven to be irresistible to those eCommerce companies that want a cloud system to maintain servers, databases and software, allowing their client applications to be easily accessed and managed.
This business, which is not yet two years old, hit the ground running, bringing in nearly $3 million in revenue in their first year, and demonstrating that they had a winning product that appealed to their target audience. A review of the company’s history should further illustrate that this offering is an exceptional deal moving forward.
Since launching, most of their clients have stayed with this company. And why not? This software solution gives them additional recurring revenue that they never had previously – why stop that? Their clients run their own eCommerce companies, and this platform appeals in particular to small and medium-sized sellers. While 90% of their clients are in the United States, a growing 10% are now coming from Europe.
Their system is sophisticated enough that it can create subscriptions for any products on the client’s CMS while also providing fully customized checkout to match the client’s branding, an analytics dashboard to keep track of the client’s recurring sales metrics, and fully customizable shipping options by weight or country, among other functions.
The company also provides merchant account management with fraud protection and chargeback mitigation so the client’s operations run smoothly – this is a huge value add they provide to their clients. For their small to medium-sized clients, this has proven to be an irresistible offer, removing the headache of maintaining a functional and updated website that can provide their own buyers with a great customer experience.
This has been a winning combination. The company’s revenue is now coming in on a recurring monthly basis apart from setup fees and commissions from service providers. While the business initially averaged $6,000 in revenue per month per client, this has increased to $9,000+ as they continue to grow in a vertical with limited competition. In fact, there are no competitors who offer software similar to this platform. They continue to scale as they build additional features that are being requested by their clients.
The company’s primary lead generation tool has been referrals from satisfied customers who happily refer them to others.
To ensure these referrals keep coming in, the company successfully operates an affiliate campaign, where referrals receive a $1,000 commission, or about 50% of their onboarding fee. A few of their larger affiliates have a custom deal where they get that 50% commission, plus an ongoing 10% commission for referred clients, a major incentive for them to do so.
A stronger investment in additional digital marketing tools would likely send their profits soaring.
The company has an experienced team in place of 8 full-time and two part-time employees who manage all daily operations, from merchant account onboarding to a project manager and technical support. All are contract employees. The current ownership focuses on onboarding new clients, checking in with issues that arise from customer inquiries, and developing new features for their software.
Providing a valuable service to the fast-growing number of new eCommerce shops opening up has proven to be a highly profitable operation for this SaaS company. With SaaS software becoming the standard within the eCommerce industry, this company’s future looks as bright and profitable as online sales do.
