FOR SALE: Digital Artwork Sales and Subscription Business
FOR SALE: Digital Artwork Sales and Subscription Business
Averaging $8,367 Net Profit Per Month!
Package of 3 well-established digital artwork stores launched in 2005!
Here are the top 6 things you need to know about this business...
- The business sells 100% unique, handcrafted digital artwork and resources. The primary site was launched in 2005 and is a respected resource in the vector design industry. These sites combined are averaging $9,707 in revenue and $8,367 net profit per month (this is for the 12 month period from June 18 - May 19), as you can see in the P&L and Financial Information section below.
- This business has a history of working with major brands including the NFL, Adidas, Nike, NBC, and many more.
- The primary site recently launched a monthly subscription model, which is building an excellent stable of automatic repeat revenue.
- The current digital catalog represents approximately $10.5k in retail value of digital content.
- Because the digital catalog is so well developed, COGS on this store are quite low leaving a net profit margin of over 80%.
- While 74% of the combined revenue of this store package was from one of the sites, the free subscribers and business lists are included in the sale and are a huge resource for cross-selling subscriptions.
Continue reading below for more information about this extremely stable and well-developed business.
The owners are selling the business because after several years they feel that they're unable to provide the marketing and growth attention that these stores could use.
- Niche: Digital Artwork Sales and Subscription (please sign NDA to begin due diligence & get additional information)
- Store Model: Digital Sales - No Physical Goods
- Business/Website Age: 14 Years (Started in 2005)
- Avg Monthly Revenue: $9,707/month
- Avg Monthly Net Profit: $8,367/month
- Net Profit Margin: 86.20% (after ALL expenses)
- Revenue Breakdown: 76% from the main site, 16% from the second, 9% from the final site.
- Weekly Time Requirement: 1-2 hours per week
ASKING PRICE: $350,000
The seller's asking price for this store is $350,000, calculated as follows...
12 Month (June 18 - May 19) Total Net Profit: $100,404 x 3.5 - Year Earnings Multiplier: $351,414 Rounded Down to $350,000
The business was started in 2005, as a way to utilize the high-quality art designs that had been created but rejected by clients. Over the years they have vastly expanded the catalog continuing to use some designs that were rejected, but also moving on to offer custom creations as well.
At its highest point, graphics packs and templates made up the majority of the site's profits, but recently the main site has switched to a subscription model offering access to their extensive portfolio for a small monthly fee. This model has been well received by existing clientele and looks likely to grow as time continues.
This business was made for and by graphic designers, but could easily be managed by someone with limited experience in this industry. The business contracts with many freelance artists to create custom requests, which would be easy to continue under new ownership.
Bottom line: This business has over 14 years of positive history, making it an ideal growth candidate for someone who wants to take on the task of marketing the existing catalog further!
P&L AND FINANCIAL INFORMATION
Here's the 2018 Profit & Loss Statement. Please note, this statement includes all revenue and expenses from all three sites combined (you can click on the image below to get a full-size view).
Here's a summary of the key numbers from the P&L...
- Avg. Monthly Revenue: $9,707
- Avg. Net Profit Margin: 86.20% of revenue
- Avg. Monthly Net Profit (after all expenses): $8,367
The current owners will, of course, give the eventual buyer the opportunity to perform extensive due diligence and verify all of the income claims and other information presented in this listing. This will include doing a number of live "screen-share" web meetings to log in and view reports and transactions in the store admin panel, payment accounts, Google Analytics, etc.
ABOUT THE PRODUCTS & SUPPLIERS
First and foremost, it's important to know that the business has created its own brand based on digital graphics. All of the designs are 100% unique, custom products that were created for the site, complete with their own custom brand. These graphics cannot be found on other websites or in other stores legally.
After you electronically sign the NDA, the owners are of course willing to disclose the name of their website and the brand name of their products to serious buyers.
The current digital catalog represents a retail value of over $10,500, and as a digital product, it is a non-consumable resource unlike traditional physical products, making the true value of the products practically limitless.
The site has relationships with several freelance designers, who are certainly interested in continuing to work with new owners. The current management will also be happy to train the new owners on acquiring relationships with new freelancers going forward.
Packages and existing content orders are automatically fulfilled when customers place an order. While custom designs are set up to be easy to process and assign to a freelance artist.
MARKETING AND TRAFFIC
The main site has A LOT of Page 1 rankings and consequently gets A LOT of free, organic traffic from Google (as well as other search engines). In fact, organic traffic is the site's #1 traffic source.
Free, organic traffic from search engines is already the site's #1 traffic source (accounting for ~70% of total traffic) with approximately 570 average daily visits from organic search results during 2018. You can see from the graphic above, traffic remains very consistent throughout the year.
It's worth noting that 22% of the site's total traffic is direct traffic (i.e. people who type the domain name of the site directly into their web browser). This means that 22% of visitors know the site's domain name and navigate directly to the site, likely because they have a) placed an order in the past, b) visited the site before, or c) heard about the site (by name). It's quite uncommon for an eCommerce store to have such a high percentage of its overall traffic be from direct traffic. This is indicative of the fact that the site has a very strong brand reputation and name recognition.
Finally, notice that only 0.3% of the total traffic has come from email campaigns. The current owners have not utilized email marketing anywhere close to its full potential. This leaves email marketing as a huge potential growth factor given the significant site history and customer lists.
The current manager only spends 1-2 hours per week on the business, primarily on answering customer emails and monitoring chat.
This site requires so little time because for most orders there is no manual processing required. With the digital products orders are automatically processed and fulfilled after checkout.
As part of the sale, the current owners will train the buyer on all aspects of running the business.
- Launch Paid Marketing Campaign - As you'll note in the P&L Statement as well as Google Analytics, there is currently no paid marketing campaigns running for this store. Given the nature of these products and the significant profit margins, this leaves a lot of room to explore paid traffic.
- Leveraging Partnerships - Over the past 14 years, this business has worked with several well-known customers. Pursuing ongoing relationships with those customers who are interested in long term relationships could help to build an excellent source of regular revenue.
- Affiliate Program - Because of the nature of these products and the industry, building out an affiliate (or brand ambassador program) would be an excellent way of increasing both sales and brand reputation.
INCLUDED WITH THE SALE
The sale includes all of the following...
- The three domain name and websites (including all textual and graphical content)
- All videos, ads, artwork and marketing materials
- Current digital artwork catalog (approximate retail value $10,500)
- All supplier accounts
- Mailing list (containing over 58,000 emails over the three sites)
- 90 days of support to train you/your employee on how to run the business (including up to 100 hours of "live" support via phone or live webinar/screen share)
- Free lifetime Pro Membership here at StoreCoach.com (if you're not already a member)
You can make an offer for this highly profitable online business here. If the sellers accept your offer, we'll notify you immediately and update this page to let other interested parties know that an offer has been accepted and the sale is pending.
Once your offer is accepted, the official due diligence period will begin, during which time other interested parties may place a "back-up offer" in case the sale falls through for whatever reason. ( Please note that if one of the back-up offers exceeds the original accepted offer, the seller is obligated to sell to the original buyer whose offer was already accepted. The seller can't back out of the accepted offer just because a higher offer was later made .)
During this due diligence period, we'll work closely with you and with the seller to help you complete due diligence. Among other things, this will include doing one or more live screen-share web conference meeting (s) so you can verify all financial information by reviewing the store admin panel, bank and merchant accounts, sales reports, Google Analytics traffic reports, supplier invoices, etc. We'll also send you the Asset Purchase Agreement (APA) for you to review. Once the APA is signed and the sale is completed, we will 1) update this page to let other interested parties know that the sale has been finalized and 2) remove this listing from the Store Coach Website Marketplace.
OPTION TO "BUY AND OUTSOURCE"
If you're interested in acquiring this business (either on your own OR as part of a group) but don't have the time, expertise or desire to handle the day-to-day operations yourself, use the Ask a Question box below to learn how you can outsource 100% of the day-to-day operations to a full-service eCommerce operations company affiliated with Store Coach for a very reasonable operating fee . This allows you to reap the financial benefits of owning (or co-owning) a "cash cow" Internet business like this without having to operate it yourself. By outsourcing 100% of the day-to-day operations, you can own (or co-own) this business completely passively.
Sign NDA to Access Due Diligence Package
Please note that until you electronically sign the NDA, we will not disclose the domain name of the website or other confidential information.
Ask a Question About This Listing
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Disclaimer: Store Coach, Inc. is acting as the broker of the sale of this website/business. The website/business owners are solely responsible for all figures, statements, claims, and information provided on this page as well as all 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 figures, statements, claims, and information provided by the website/business owners.
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