SellerForce presents a SaaS company that has served as a leader within its industry for over three decades. The backbone of their business is their birthday greetings software and website, which utilizes their database of over 16,000 news headline datapoints to create greetings telling clients all about the day that they were born. These datapoints have been validated by Gannett Corp., the owner of USA Today, and cover every year from 1880 to 2022.
Their copyrighted database has been carefully crafted throughout many years to result in 16,063 data points covering every date for the past 142 years. To add each fact, they do research that uncovers several interesting news events around music, science, sports, entertainment and trending news for a specific time period. They take those facts and summarize those news stories to fit the requirements of the database fields. To build a comparable database today from scratch would take approximately 16,063 hours to complete, an hour for each data point. At a wage of $50 per hour for an accurate and capable researcher, the cost to reproduce this database would be in the $800,000+ range.
Since their founding, the company has acquired numerous influential clients, such as Wells Fargo Advisors, Edward Jones, Merrill Lynch, and many more. They have not only accrued an average sales price of $99.95, but their past 6 contracts averaged about $3,068 per contact. While they offer services available at a one-time cost, they also offer a subscription-based service, with a majority of subscriptions lasting for 12 months.
Their customer churn rate has also grown to be quite strong, being roughly 8%. Remarkably for a company of their size and reputation, they have no paid advertising plan. Instead, 100% of their growth has been organic, with their products having a natural placement on the first page of all search engines. As they have also had no need for outside investment or borrowing capital, the company is highly cost efficient, with profits being used to fund the development of their products and technologies.
The current owner enjoys a workload of only 5 hours per week, with very few daily responsibilities. Their tasks largely consist of replying to emails, handling the occasional direct purchase order, and ensuring that the business continues to go smoothly. The rest of the company’s tasks are handled by their distributor and a third-party programmer, which offers a buyer plenty of time to be used as they see fit. Whether they wish to focus on growing the business, or want to mold it to better suit their schedule, the company offers a high amount of flexibility.
While they specialize in personalized birthday messages, they could branch out into other special occasions and expand gifting opportunities. This would allow other businesses to better reach out to their clients and offer even more of a personal touch.
An effective way to build upon the foundation of the business would be to expand their databases. While those are already excellent, one could strengthen them further by implementing new, popular topics, and information categories such as the history of cars, popular toys, and fashion trends. The company would also see marvelous results in tailoring historical databases for industry-specific software. For instance, they could build timelines that prioritize specific businesses or industries, which would appeal to companies that want to offer clients information centered around their brand.
They could also target the marketing and HR departments of new companies, building upon their existing network of clients, and further strengthening their hold on the market. To do this, they could grow the existing affiliate network and utilize distributor marketing to draw new attention and increase sales. They could also utilize their distributors bundling opportunities and explore licensing content. Other options for growth include deploying Google and other ad-based revenue products, and launching custom posting modules for LinkedIn, Facebook, and Twitter.
They could also launch an outsourcing service to manage greeting creation and distribution for companies and offer a new template-branding service for their clients using template designer. The company could even pursue international growth by applying country-specific databases and translating the software into multiple languages.
The company has an immense amount of growth potential to be utilized. Having secured a leading position in its market, it is in the perfect position to take advantage of its solid reputation and advance to new heights.
If you would like more details about this seasoned deal, then contact SellerForce for more information.
Listing ID: SF83