Hey hey peeps, happy Monday.

Hopefully it’s starting off with a week of money moves, not muppet moves!

I just got to Whistler Canada where I’ll be spending the next 4-5 months (till the snow falls). Off to unpack the mountain bike and hit the trails.

This week we’ve got an ecom business that I like… and I’m really more of ‘digital product’ than ‘physical inventory’ kind of dude.

On that note, let me know your response to the question below.

Let’s jump into it!

1/ Profitable Eyewear Business with Untapped Growth Potential

Healthy 20% margins after 15 years in business, with a necessity product make this an ecom business I like.

💰 Asking Price: $2,630,000 + Inventory
💼 Cash Flow: $693,422/year
📊 Revenue: $3,435,393/year
📅 Established: 2010

💭 My Take: This business specializes in prescription safety glasses, eyewear, and personal safety equipment—products that, much like work blue jeans, aren't subject to fast-changing fashion trends. The company has exclusive vendor relationships with top brands like Luxottica, which new online retailers can't easily secure anymore. This exclusivity, along with a unique partnership with a government lab for the lowest lens costs, gives it a significant edge.

However, there's some confusion about the business model. The listing mentions a drop-ship model but also includes inventory in the asking price. It's crucial to clarify this—if it's primarily drop-ship, why is there inventory? Despite this, the business has shown strong profitability and is well-established. The business benefits from exclusive vendor relationships that new online retailers don't have, making it an attractive acquisition. This business offers stability and strong margins, ideal for someone looking to manage a well-established e-commerce operation in a niche market.

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2/ Profitable Mobile Gaming App with Strong User Base

💰 Asking Price: $587,925
💼 Cash Flow: $156,792/year
📊 Revenue: $217,464/year
📅 Established: May 2015

💭 My Take: I like this mobile game because it has a proven track record with solid ratings and steady profits. Developed on the Unity engine and available on both Google Play and the App Store, it focuses on modern warfare and features a significant multiplayer component. With around 2 million downloads and strong ratings (4.4 stars on Google Play and 4.5 stars on the App Store), it generates a consistent annual cash flow of $156,792 from $217,464 in revenue. The game’s ability to acquire users organically indicates strong market demand and suggests that it could thrive with a targeted marketing push. The minimal maintenance required is another plus, making it a relatively low-effort investment.

However, the fast-evolving gaming market poses a risk of obsolescence, so it’s crucial for a buyer to be an active gamer or gaming market expert who understands these dynamics. The game’s stability and established user base are appealing, but ensuring its future relevance will require continuous engagement and content updates. If you're experienced in the gaming industry and ready to drive further growth, this could be a lucrative opportunity.

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3/ High-Margin Lead Gen Newsletter Business

💰 Asking Price: $156,523
💼 Cash Flow: $43,680/year
📊 Revenue: $62,424/year
📅 Established: November 2020

💭 My Take: This subscription-based digital product business shows high margins and steady profits. Although we're not entirely sure of the exact service provided, it seems likely that it sends out a newsletter with business leads, such as information on companies hiring new executives. This model could be highly valuable, providing actionable lead data to subscribers. The business has proven to be transferrable, supported by a team of virtual assistants and minimal owner involvement.

The current LTV of $428 suggests around 150 paying subscribers, though the exact duration of the customer lifetime is unclear. With primarily organic traffic, the business could see significant growth with a targeted paid advertising strategy. The subscriber base itself holds potential for additional monetization opportunities, such as auctioning lead data. This business offers a scalable, high-margin opportunity for someone looking to dive into the lead generation or digital subscription space.

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+1 Gaming Niche and Display Advertising Business

I think this one is overvalued and brings a lot of risk, but I included it as the numbers are healthy and in consideration of the gaming app included this week, it highlights the value of actually ‘owning the platform.’ For about the same multiple, I’d much rather own the app I covered first in this edition.

💰 Asking Price: $2,192,201
💼 Cash Flow: $597,876/year
📊 Revenue: $752,172/year
📅 Established: January 2015

💭 My Take: This business is centered around premium informational and digital content focused on a popular multiplayer online game. It generates 86% of its revenue from display advertising, heavily relying on organic Google traffic. While the high margin is typical for a business monetized with display ads, this dependency on organic traffic poses a platform risk, especially with a high valuation multiple of 44x. To be successful here, you need to be adept at turning organic traffic into revenue through other digital products, such as guidebooks or community subscriptions.

I'd recommend investigating whether the current owner has attempted to diversify revenue streams. Scoping out archive.org could provide insights into past efforts and their traction. If previous attempts to monetize beyond display ads have failed, it could be a major red flag. This business requires a master at organic traffic monetization to explore its full potential and mitigate the risks associated with heavy reliance on display ads.

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