FOR SALE: Parenting Digital Products & Subscription Business with €70,000 MRR
FOR SALE: Parenting Digital Products & Subscription Business with €70,000 MRR
Averaging €30,846 Net Profit / Mo
This business offers digital products, largely through a subscription model, in the parenting niche.
Please Note: This sale includes two websites. While both are in German (targeting Germany, Austria, and Switzerland), the buyer does not need to be German OR speak German in order to own & manage the site. All financial figures in this listing will be shown in euros (€).
Here are the top 6 Things you need to know about this business:
- This business currently has nearly 2,000 paid subscribers resulting in monthly recurring revenue (MRR) of €70,000 paid subscribers.
- The customer lifetime value is approximately €200 with an average subscription length of 5.5 months. The current cost per subscriber acquisition is only €20 - €50.
- Based on the current subscribers & average value, this business will gross €400,000 in the next five months even with ZERO growth and marketing spend.
- The last two months (July and August) have been the highest-grossing months in the history of the business (€54,765 and €70,641, respectively), showing amazing growth potential as subscriptions increase.
- There are ZERO physical products to ship, everything sold is digital and automatically fulfilled when customers checkout. Products include PDF Training guides and audiobooks.
- Currently, operations only take approximately 10 hours a week.
The current owner is selling this business to acquire funds for a new business venture in a different industry. The current owner will, of course, agree to sign a non-compete clause as part of the sale.
- Niche: Parenting Education (please sign NDA to begin due diligence & get additional information)
- Store Model: Digital Downloads via Subscription
- P&L Period: March - Aug 2019 (6 months)
- Store Launch Date: Aug 2016
- Avg. Monthly Gross Revenue: €48,008
- Avg. Monthly Net Profit: €30,846
- Net Profit Margin: 64.25% of revenue
- Owner Time Requirement: 10 hours per week
- Site Language: German - the site can be operated without speaking German
ASKING PRICE: €1,480,000
The seller's €1,480,000 asking price was calculated as follows:
/ 6 to Yield Average Monthly Net Profit: €30,846
x 48 Month (4.00 Annual) Earnings Multiplier: €1,480,608
P&L and Financial Information
Here is the P&L Statement (March - Aug 2019). Click on the image to see a larger version of the P&L in a new tab.
As you can see in the P&L above, the store has averaged monthly revenue of about €48,008, with July and August having the highest revenue, due to increased subscribers. The P&L was limited to six months to show the current subscription-based model. This model was launched in October 2018 and began to establish itself in early 2019.
Unlike most eCommerce stores, this business sees most profits from advertising efforts following the first month. The average cost to acquire a new subscriber is between €20 - €50, while that subscription generates €37 per month. The average length of a subscription is 5.5 months, leaving a Customer Lifetime Value (CLTV) of approximately €200. So while the store may simply break even or lose money on new subscribers on a monthly basis, its return on advertising is €4 - €10 per dollar spent.
The current owner will, of course, give the eventual buyer the opportunity to conduct extensive due diligence, including one or more live "screen-share" web meeting(s) where you’ll be able to view reports and transactions in the business' admin panel, payment accounts, bank account, etc. to verify and confirm all of the figures shown in the P&L above.
About the Niche & Suppliers
As noted above, the store sells digital products in the parenting niche. Both sites are written in German, and target German-speaking countries (Germany, Austria, and Switzerland). Each site has a primary product - a PDF guide and audiobook, created and owned by the business and then several supplementary products that are included in subscriptions or upsell offers. All products are digital, and customers automatically receive access following purchase.
Subscribers also gain access to trained email support. This support is handled by freelance assistants, who have expressed a desire to continue working with the business under new ownership. Expenses for this support are included in the P&L above as "Customer Support". As these are digital products, this business has very little overhead which allows for a great deal of advertising.
For the benefit of the eventual buyer, the specific products the store sells as well as the domain name of the site will only be disclosed to serious potential buyers who first sign an NDA (which you can do electronically below).
Marketing and Traffic
Traffic to this business is split primarily between Facebook Ads and Google Ads, with Facebook being the larger contributor. The business also has over 3,000 registered affiliates that drive additional traffic and who are paid for direct conversions.
The current sales funnel is the result of several years of running variant tests and experiments on the most effective conversion options. The business switched to the subscription-based model towards the end of 2018 and has seen considerable growth in revenue and customer lifetime value since establishing this model.
The current owner estimates that operations take approximately 10 hours per week running the store at its current operating level reflected in the P&L above. Here's a list of the tasks the current owner performs each week:
- Modering Facebook Comments (1 hour per week)
- Assigning emails to support freelancer (2 hours per week)
- Managing Facebook/AdWords Campaigns (3 hours per week)
- Manage billing schedule (2 hours per week)
- Accounting and bookkeeping (1 hour per week)
- Sending a monthly newsletter (1 hour per month)
Customer support is currently provided by 2 freelance contractors, who have expressed a willingness to continue working with a new owner (this expense is included in the P&L above).
- Optimize and Expand PPC Campaigns - A majority of marketing time for this business had been focused on growing Facebook, while Google Ads have largely been left in place without much oversight. A full review and budget expansion could improve the cost per acquisition price (CPA) and increase traffic.
- Move into new language markets - Currently, all sales are targeting German language speakers. The existing site and digital products could be translated into other languages which would substantially increase the potential audience size.
- Better utilize email marketing - The business only sends a single monthly email to cross-sell products. The site could see lower CPA and higher conversion rates by implementing a free email signup and auto-responder series to funnel cold visitors into future subscribers.
Included with the SaleThe sale includes all of the following:
- Both domain names and websites (including all textual and graphical content)
- All training guides, audiobooks, and additional resources sold on the sites or included for subscribers.
- 2 Facebook pages (8,000 likes and 5,000 likes)
- All email subscriber lists (~37,000 total subscribers)
- All customer lists associated with the business (including payment accounts for rebilling subscriptions)
- All Marketing Campaigns (Facebook and Google)
- 30 days of support to train you/your team on how to run the business, manage the ad campaigns, etc. (first 30 hours via phone or live webinar/screen share then Skype/email support after that)
- Note : The seller will certainly sign a non-compete as part of the purchase & sale agreement.
You can make an offer for this highly profitable eCommerce store here. We'll immediately present your offer to the seller. If he accepts your offer, we'll notify you immediately and update this page to let other interested parties know that an offer has been accepted.
Once your offer is accepted, a 10-day due diligence period will begin. During this 10-day 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 meeting(s) so you can review financial information, the marketplace admin panel, payment accounts, sales 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 update this page to let other interested parties know that the sale has been finalized and 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, desire or know-how 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 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 Begin Due Diligence
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Disclaimer: Store Coach, Inc. is acting as the broker of the sale of this website/business and is merely presenting figures and information provided by the website/business owner. 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.
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