2024.07.07 - Online Business Acquisition Opps

Today we’ve got 3 great digital product/service businesses available for acquisition!

🔫 Gun to my head question:

If I had to write a check for one of the businesses in this email, with no other details which one would it be?

This is tough, I really like all 3.

The resume writing business has the highest multiple but is seemingly the least defensible. Although easier said than done, it would be the easiest to start up and compete with.

The freelancer certification course business seems really good, but tone from the owner implies there is a level of persona involved.

So I would stroke a check for the Arts and Crafts Subscription Business. Low multiple, good reason for selling, and solid pricing for a direct response sales funnel are really appealing here. Of course the risk is some type of IP issue considering the sellers reason BUT I actually have a lot of faith in Quiet Light as a brokerage that they would not endorse a listing with this kind of legal concern.

// 180k/ yr Freelancer Certification Courses

💰 Asking Price: $420,011
📊 Avg. Monthly Revenue: $226,536
💼 Avg. Monthly Profit: $180,000
📅 Established: September 2016

This subscription-based digital product business offers a range of self-paced courses and certification programs aimed at freelancers, retirees, and career changers. Despite experiencing a significant drop in traffic in February 2023, profits have remained steady, and the business is valued based on performance after the traffic decline. The business is managed by a husband-and-wife team and is designed to serve an older demographic (age 50+).

• High 79% margins

• 8 years in business

• Steady profits despite traffic loss

• Established free trial session to drive conversions

• Seller willing to stay on to create content

❓ What caused the 94% traffic drop in February 2023—was it due to changes in organic traffic or a reduction in advertising spend?
❓ How satisfied are the customers, and what are the reviews like?
❓ Can the business attract new customers without the seller's involvement?
❓ What is the customer lifetime value (LTV), and how sustainable is the current customer base?
❓ How heavily is the seller's persona ingrained in the business, and how will this affect customer retention and acquisition post-sale?

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// 172k/yr Arts and Crafts Subscription Business with 44 Courses

💰 Asking Price: $378,750
📊 TTM Revenue: $280,416
💼 TTM Profit: $172,157
📅 Established: 2017

This well-established arts and crafts subscription business offers 44 evergreen courses, tapping into a massive and enduring niche. The business uses an innovative $1 subscription for the first year to attract new customers, with renewals at a higher price point. While this makes it an easy, low-ticket offer, the one-year duration might result in churn as customers could lose interest. Shortening the trial period to 90 days could potentially improve retention.

The business is being sold due to unique circumstances: the seller's employer in Spain does not approve of the business due to its similarity to their own, and immigration issues prevent the seller from quitting the job. Consequently, paid advertising has been turned off. Despite this, the business continues to thrive with a 61% margin and over 2,500 paid subscribers.

• 44 evergreen courses

• Arts and crafts is a huge evergreen niche

• 7 years in business

• 61% margin

• $1 first-year subscription model with higher renewal rates

❓ Is the business still acquiring customers organically without paid ads?
❓ What are the reviews on the products?
❓ Will there be problems with the non-compete or potential intellectual property issues due to the seller's employment situation?
❓ What is the customer lifetime value (LTV), and what is the churn rate after the first year?

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// 103k/yr Resume Writing Service

💰 Asking Price: $341,000
📊 TTM Revenue: $162,398
💼 TTM Profit: $103,616
📅 Established: 2015

This resume and CV writing service business boasts a high margin of 64%, providing comprehensive services to a global clientele. The company has received mentions in major publications like Business Insider, CNBC, and Fortune, enhancing its credibility. It offers downloadable templates and personalized resume services, with premium pricing set at $1,199 and $1,599. The business primarily relies on Google Ads for customer acquisition, indicating a solid marketing strategy.

• 64% high margin for a digital service

• 44 evergreen courses

• Established 8 years ago

• High premium pricing for resume services

• Current sales are primarily generated through Google ads. This business is really a direct response advertising business. Buyer should be prepared to run Google ads 'better' and run ads on other platforms and aggressively scale.

• There are resume writing services that spend 100k+ per month on Google ads, which indicates just how big of a market this is.

• The risk: chat gpt. At 5 years old this business seems to be doing well. I would be curious to see how their revenue has fared. For what it is worth a major play in the space 'https://www.topresume.com/' has been maintaining a high level of adspend since 2020, which indicates people still pay for resume writing service.

• I think a buyer should have some type of AI assisted or low ticket AI writer on their radar.

❓ Are the mentions in major publications earned or paid?
❓ What is the revenue split between downloadable templates and resume services?
❓ How has the business performed in light of emerging AI tools like ChatGPT?

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