SellerForce® presents a 35-year-old brand that operates as a founding member of its fascinating market. They are the proud owners of a birthday greetings software and website, which uses their database of over 16,000 news headline datapoints to create personalized greetings for their clients. Instead of generic birthday wishes, clients receive information telling them all the interesting things that have happened on their special day. These datapoints cover every year from 1880 to 2022, and have been validated by the owner of USA Today, Gannett Corp.
They have effectively used their three decades worth of experience to build their copyrighted database, which now covers over 16,000 data points that cover every date for the past 142 years. They have also done hours of research into specific time periods and have discovered more than a few interesting news events centered around entertainment, music, science, sports, and trending news. They then take these facts and summarize them enough that they fit within the database requirements. For a competitor to attempt something similar, it would take roughly 16,063 hours, with each hour being used to cover each data point. For a capable researcher working at a rate of $50 per hour, the cost to reproduce this extensive database would fall in the ballpark of over $800,000.
The company has attracted numerous influential clients throughout the years, including, but not limited to, Wells Fargo Advisors, Edward Jones, and Merrill Lynch. They now have an Average Sales Price of $99.95, with their past 6 clients having averaged at about $3,068 per contact. Though they do offer a one-time cost option for their services, their subscription-based service has been very successful. Most subscriptions last for 12 months, leading to a customer churn rate of 8%.
Despite their powerful client base and sales, the company has no paid marketing plan. Their sales are entirely organic, and their products fall naturally on the first page of all search engines. They have no need for outside investment or borrowed capital because of this, allowing them to be very cost-efficient in their practices. Their profits are then used to fund the development of future products and technologies.
The owner spends an average of 5 hours per week on their daily tasks, which consist of replying to emails, taking care of the occasional direct purchase order, and making sure that the business continues to run without trouble. The rest of the company is managed by their distributor and a third-party programmer, which will give the buyer plenty of time to adjust post-transition, and plenty of time to scale or attend to the rest of their schedule.
Though the foundation of their business has been their specialized birthday messages, it’s possible for them to start including various other special occasions in their services as well, such as weddings or retirements. They could also expand their gifting opportunities, giving other businesses more ways to reach out to their customers with a personalized touch.
Another great way that they could grow their company would be to expand their databases. Implementing new, trending topics, or additional information categories such as fashion trends, popular toys, and the history of cars would be highly beneficial in piquing consumer interest. They could also see positive results by tailoring their databases for industry-specific software. The company could, for instance, create timelines that prioritize certain businesses or industries, which would be perfect for clients that want to offer interesting facts about their brand.
Targeting the marketing and HR departments of new brands would also be promising, as it could build their existing web of clients and strengthen their position in the market. Some good ways of doing this would be to make use of distributor marketing, and to build upon their existing affiliate network. They could also make use of the bundling opportunities that their distributors provide and explore licensing content.
Their marketing campaign could be quickly improved upon by deploying Google and other ad-based revenue products, along with Spectrum’s custom posting modules for LinkedIn, Facebook, and Twitter. The company could also use Spectrum’s template designer to provide a new template-branding service, or even launch an outsourcing service to handle greeting creation and distribution for their clients.
This acquisition provides an undeniably sturdy foundation for its buyer to work off. Having firmly established themselves as a veteran within their industry, they could easily use their reputation to grow massively in size. If the buyer wishes to do so, they could even reach a global scale through the use of country-specific databases and translated software.
Additionally, for qualified buyers, the current owner is willing to Seller Finance a significant portion of the overall purchase price. This will help facilitate the sale and help offset the increase in current interest rates.
SaaS revenue from Fortune 500 companies
If you’re interested in what this market titan can offer you, then contact SellerForce today.
Listing ID: SF122