SellerForce® presents a SaaS business offering solutions to businesses that invest in online paid advertising on platforms such as Facebook, Instagram, Google, YouTube,and TikTok. Due to Apple’s launch of ad tracking control in their iOS 14 update, users could opt out of ad tracking. This change hit advertisers hard as they were no longer able to track which ad campaigns were working and which were not.
This company provides these advertisers with a solution to capture accurate data and use their marketing budget efficiently. As a result, its customers are scaling their businesses faster while getting higher returns on their ad spend. The software platform’s modest monthly fee offers customers an incredible return on investment.
In addition, the business provides detailed reports and analytics so customers can control their entire ad budget with more precision. eCommerce stores are investing millions in online ads and, without this software, many are wasting a large portion of their spend due to inaccurate tracking and attribution. This all came about from Apple’s iOS changes that limited the amount of data an advertiser can access to track the efficiency of their ad spend.
The existing owner has an eCommerce marketing business, allowing his team to experiment, test, and refine the product in real-world situations. The results speak for themselves. The competitive advantage of this offering boils down to four key areas:
▪️ The accuracy of their tracking
▪️ Connecting to any eCommerce platform on which a store is built
▪️ Integrating with multiple advertising platforms (Facebook, Instagram, TikTok, Youtube, etc.)
▪️ Offering highly competitive prices
The typical customer is an eCommerce store doing $1 million+ in revenue annually and investing at least $5,000 monthly in paid ads. There are three tiers of service available, ranging from $99 to $299/month. In terms of revenue, the largest tier is $99/month and is for businesses tracking up to $20,000 a month in ad spend. Customers are billed monthly and can cancel at any time. Though the business is relatively new, the churn rate has been very low.
Seasonality is inevitable with digital advertising as eCommerce has well-known and predictable peaks and valleys. Subsequently, online stores invest more in ads and their need for accurate tracking increases during those times. This company can expect a healthy spike in Q4 due to Black Friday and Christmas.
The platform took thousands of man-hours to develop and is now a highly automated and efficient machine. The owner works just five hours weekly, focusing on team leadership, creating growth strategies, and collaborations. Additional employees include a full-time developer who handles maintenance, technical support, and small developments. A part-time support manager deals with customer support tickets, onboarding, support calls, and LinkedIn outreach.
The company has spent little on advertising and relies on a few primary methods to generate leads. LinkedIn automated cold outreach is done with software that automatically sends connection requests to the target audience and then automatically messages them. A customer support member will start a conversation with those who respond, intending to get them on a discovery call. Additionally, the business has partnered with eCommerce courses and conferences. It also offers an affiliate program to every customer for a referral, where they get a 15% recurring commission from every customer they recommend. This has been an effective, cost-free marketing solution and demonstrates customer satisfaction with the product.
The company has also implemented some SEO. Blog posts regarding product updates and value-based blogs are released regularly. Finally, the company posts on relevant Facebook groups. They explain how the software works and its benefits.
As successful as the business is, scale opportunities are abundant. They have Facebook, Instagram, and LinkedIn pages but are not particularly active on any. Facebook and Google Ads at scale would likely increase revenue tremendously, particularly given the company’s expertise on the platforms. There are over 200,000 Google searches per month on keywords related to ad tracking. Ad tracking is big business and this company has only scratched the surface of the opportunity.
The bottom-line earning potential of this company is significant. Because the software is already fully developed, the cost per new customer is minimal. Only server costs are incurred. An ambitious new owner can realistically scale this into a multi-million-dollar business in little time, with effective advertising and focus on business strategy. This is a well-oiled machine, ready to be taken to the next level.
Contact SellerForce today to learn more about this exciting acquisition and its immense potential in the right hands.
Listing ID: SF143
