Hey hey peeps! This week we’ve got some good finds on digital product businesses. 2 I will be inquiring on.

Coming to you from Rotorua New Zealand this week where I have been doing a lot of mountain biking (pic), partaking in the Crankworx festival and been overwhelmed with building an outbound sales team for my lead gen business. Actually I am personally disappointed that I have had to be doing some much work while I am here. The story goes I hired a fractional sales manager in Dec to take this off my plate… but he folded and I am picking up the (expensive). cards. Story of business ownership — maybe you can relate.

In other news there is a petition to increase the SBA 7(a) lending limit to 10mm (currently 5mm). I think an increase is due considering the inflation and increase in small business valuation over the last 10 years. Sign it here if you are an advocate of entrepreneurship through acquisition.

Here we go…

10+ Year Old SaaS In Financial Services

💰 Asking Price: $475,000

💼 EBITDA: $112,000

📊 Revenue: $127,000

📅 Established: 2013

Ah the beauty of an aged SaaS Business that services a huge industry with deep pockets! This business serves 120 blue chip & multi billion dollar financial institutions with a risk tolerance questionnaire. It seems so simple!

Their margin at 87.5% tells me there is little updating/tech work being done and their listing indicates it is not done by the owner (a good thing) with the mention of a developer willing stay on. Certainly a big key to their success has been their ability to land sticky clients in the industry.

I feel the 10 year old platform with big name clients provides high leverage for marketing efforts and the nature of its software/industry lends itself to further expansion.

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300k/yr Productivity Software At A Low Multiple.

💰 Asking Price: $550,000

💼 EBITDA: $303,700

📊 Revenue: $1,041,381

📅 Established: 2021

The low multiple makes this business appealing. The listing is vague in details but my intuition tells me this may not be a SAAS business as they describe but rather a business that sells spreadsheet templates -- which I know is a big market. The details that speak to that are an AOV of $29, their reference to 'abandoned cart recovery' and their valuation which is more inline with... a digital product ecom business that is pushed with paid advertising. A business like that really lends itself to the performance marketers that just want to crank ads to a proven product (myself).

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74k/yr Infoproduct Offering CPE Education

💰 Asking Price: $249,544

💼 EBITDA: $74,868

📊 Revenue: $82,488

📅 Established: 2014

This business sell quality courses that qualify for Continuous Professional Education (CPE) credits. That's beautiful because it creates a barrier to entry that others on the 'online course creators' are unlikely to over come and gives you a market for the course.

I'm curious why it is so small for being around 10 years. The listing makes no mention of marketing aside from organic traffic. The high margins, characteristic of an info product, do give plenty of room for paid marketing efforts in the budget. With the audience of professionals, backed by the CPE bonafiditity, opportunity likely exists to switch to a subscription model for recurring revenue or upsell to higher ticket products. As with any info product, you do have to consider 'who's going to be making the new courses'. It's important to make sure the business isn't tied to a guru-like seller. Overall I like this one a lot.

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$478k/y W Digital Products

💰 Asking Price: $1,675,000

💼 EBITDA: $478,166

📊 Revenue: $608,214

📅 Established: 2013

More info product, and this seller is 'passionate and would be open to continuing to create materials and resources post-sale'.

In business 11 years and SBA prequalified this business creates and sells digital materials for pediatric speech-language pathologists that are easy to implement and backed by cited research. They describe their products as evergreen with over 75k reviews and avg 4.9 stars. In addition to the seller being a non-marketer.

This all sounds good, but the listing discloses that it earns the majority of its revenue through 'TeachersPayTeachers'. Im not familiar with it, but could this market place be prohibitive of a non-teacher seller. That's something to look into.

Worth a look if you are into digital products businesses!

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