Passive Ownership of High-AOV Dropship Store
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"A party may only use the Confidential Information of the other party solely for the purposes of evaluating the Transaction and/or for entering into and undertaking the Transaction with the other party. The Confidential Information must not be used for any other purpose. Specifically, the Potential Buyer agrees not to use the Confidential Information to create a business or website that sells products that compete directly with the products currently sold by Seller."
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Additional Information About the Website
The domain name of the website is TanningBedsDirect.com. As you'll see when you visit the site, it sells several of the top brands of home tanning beds, commercial tanning beds, and stand-up tanning booths.
Interested in Joining a Buyers Group?
Based on our past experience selling high-revenue, high-profit sites like this one, we know that very few people have sufficient funds to purchase a high-value site like this outright. And of those who do have the necessary funds, most don't have the time, the team or the know-how to effectively operate and market the store and continue to increase its profitability after taking ownership of it.
Understanding this, the seller is open to the possibility of selling the business to a small buyers group comprised of several individuals/parties (as an alternative to selling it outright to a single party). This option is especially feasible given the operations contract in place, as discussed in the Store Operations section of the sale listing.
By forming a buyers group, a small group of savvy people can pool their funds and purchase the business together. And because of the operations contract in place, ownership can be 100% PASSIVE for the members of the ownership group.
The owner (or owners group) would of course direct the operations team on how they'd like the business to be operated/marketed and would "meet" (typically via web conference) with the operations team periodically to review sales & financial reports and discuss "big-picture" strategies and make decisions. But the operations team would completely run the business from day to day.
This proposed operations contract would be with StoreStream LLC, which is the same company that has been operating the business for the past 3.5 years. Thus, nothing will change at all in the day-to-day operation of the website when it is sold to the new owner(s). The operations contract would include all core operational functions, including:
- Website and catalog maintenance
- Order processing (fulfilling orders, dealing with shipping issues and returns, etc.)
- Customer service (pre-sale questions, post-sale support, etc.)
- Search Engine Optimization (SEO)
- Pay-Per-Click ad management
- Accounting and bookkeeping
The proposed operating fee is 40% of net profit. For the sake of illustration, the following shows what the owner(s) of this business would have received in 2018 had this sale happened back on 1/1/18...
2018 net profit (per P&L above): $38,017
Less: 40%-of-profit operating fee: -$15,207
Equals 2018 net profit after operating fee: $22,810
Thus, had the new owner(s) purchased the site for $114,050 back on 1/1/18, their 2018 earnings (after paying the operating fee) would have been $22,810, which is 20.00% of the purchase price of the business... a very impressive return! And given the business' upward trends in rankings, traffic, revenue and profit over the past three years, it's very reasonable to expect that earnings in future years would be even higher than 20.00%.
If you're interested in being part of a buyers group, use the contact form below or contact us on Skype (kevin.hermansen) and indicate what percentage of ownership you'd be interested in acquiring (minimum of 15%). We'll then send you more information about how the buyers group would be organized and how it would work.
If you have questions about this website OR about the buyers group purchasing model (or the operating contract associated with it), please submit your questions using the form below.
Disclaimer: Store Coach, Inc. is acting as the broker of the sale of this website/business. The website/business owner is solely responsible for all financial figures, statements, claims and information provided on this page as well as all financial figures, statements, claims and information which may be provided to interested parties during the due diligence process. It is the responsibility of the eventual buyer to review and verify all financial figures, statements, claims and information provided by the website/business owner.