Deal Flow, The #1 Websites Brokerage
Gross Revenue: $82,314
Established 11-Year-Old SaaS Business Netting $55K+ in the TTM
Near Passive Business with Stable Profits
With the first license sold in 2005, for sale is an established business selling video chat software. Website owners can purchase the various licenses to implement video chat technology on their website. In addition to the video chat technology, media servers and integration kits are also offered for sale.
In addition to the website, the customer database will be included. Ownership is selling the business to dedicate time to their full time job at an unaffiliated startup. The business sells 5 different licenses, that differ based on the maximum amount of users that can connect simultaneously. Additionally, various services are sold ranging in price. Further, the business offers server hosting. Although many services are purchased as one-time payments, re-occurring revenue makes up ~23% of revenue. Topline revenue in the Trailing Twelve Month’s was over $88,000, and net profits surpassed $61,000. Current ownership works approximately 4 hours per week managing operations, while outsourcing 30 hours of weekly customer support. Owner’s time is spent on payroll, training, overseeing revenue, and responding to any issue There are several growth opportunities the new owner could pursue, including optimizing the pricing model and focusing on business development activities. Over the past two years, the owner has spent very little time or money on marketing, with the majority of customers being acquired organically. The new owner can expect significant growth by investing in an entire suite of marketing activities, including social media marketing, content marketing, and targeted ads towards website entrepreneurs. Another potential avenue to pursue would include hiring a commission only sales contractor to increase revenues through direct sales The business could also see rapid expansion through launching an affiliate program due to their high average basket price allowing for the continuation of strong margins. In recent months, there has been an uptick in recurring revenue through hosting services, now accounting for 23% of sales in the trailing 5 months. New ownership could continue with the recurring revenue model by split-testing a new monthly-recurring subscription model for the software. The recurring subscription model could also introduce a free 30 trial to improve customer acquisition and conversion rates. Lastly, the business could achieve higher net profits almost instantaneously. An example of low hanging fruit, would be to switch payment processors from Avangate (4.9% + $2.50 per transaction) to another provider such as Stripe (to 2.9% + $0.30 per transaction).
Facilities: Home Based
Home-Based: This business
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