SellerForce® presents a telecommunications company that has become a favorite among the Recreational Vehicle Community and rural communities across the U.S. and Canada for their routers that help connect customers to high-speed internet service. With many Internet service providers still reluctant to invest its infrastructure in rural areas, the company’s virtual SIM routers provide high-speed 4G and 5G internet access to people now struggling to get reliable connections.
In addition to marketing its routers, which customers can purchase or rent, the company is growing high profits through its monthly subscriptions, enjoying solid recurring revenues from its active subscriber base.
While the company maintains healthy sales on its $130 Average Order Value, a phenomenal 90% rate of customers subscribe long-term. The company also gets highly enthusiastic reviews from customers who say that prior to becoming subscribers, it seemed like a solid internet connection just wasn’t likely where they live. The company maintains an average 4.9 Star Rating based on 1,160+ reviews.
The brand also has grown its business through a successful Affiliates campaign, which provides commissions to affiliates who bring new subscribers to their plan. This campaign has worked so efficiently that the number of paying users skyrocketed by a whopping 105% in the past year, and the company is now looking toward a much larger expansion into the Canadian market.
This business represents a clear opportunity for a U.S. Buyer to acquire this company and then scale it quickly. In addition to a stronger expansion into Canada, the company could grow through an Influencer campaign on its social media platforms to build brand recognition, and by starting partnerships with RV companies and related publications.
Business Broker Takeaway
Our analysis of this business shows that the value propositions present are strong for a first-time buyer looking to get into the online space. We are excited about this business for 3 important reasons:
1. Recurring Monthly Revenue. While their AOV is $130, because so many customers stay on long-term, the company’s Customer Lifetime Value is considerably higher at $800. The market for people who travel frequently in an RV or live full-time in one, or rural communities underserved when it comes to internet access, are huge. This brand has developed a strong relationship with these consumers, giving them high-speed access to top providers such as AT&T, Verizon and T-Mobile. Their virtual SIM cards provide access to all three simultaneously, so customers can be switched between carriers for the best possible speed, regardless of their location. Customers are allowed to rent their routers, which enables the company to also rent its SKUs from their supplier, without having to maintain inventory.
2. 24/7 Customer Support. Everyone has experienced a disruption in internet service at some point, either at home, at work or while traveling. These outages can be caused unexpectedly by software failures, system overloads or weather. This company employs five full-time contractors who provide 24/7 customer service. This has given the company a strong reputation for being accessible, helpful, and quick to respond if any problems arise. This has also enabled the current owner to work as little as 8 hours per week on this turnkey operation, focusing mainly on order management. The company is highly efficient since they do not stock any inventory. Most orders are Dropshipped directly from the suppliers, who are based in New York.
3. Fast-Growing Market. Celler routers are changing the dynamics of internet access. Combining a cellular modem for connections to 4G and 5G towers with a Wi-Fi router, these routers can effectively reach people who struggled for years to get a decent internet hookup. That’s true not only for rural communities lacking access to the internet but also RV travelers who never stay in one place very long. Cellular routers are also popular because they’re finally coming to the market at competitive prices, and proving to be considerably more powerful than earlier versions, which has sent the sale of cellular routers soaring. With its well-established brand recognition, loyal customer base, and strong subscription revenue, this company is ideally positioned to benefit from the industry’s rapid growth.
The Company
The company was launched nearly 3 years ago to fix a clear gap in the market when it came to accessing the Internet. From the start, they had a clear and strong target market. The RV industry is projected to grow by 15.8% this year compared to 2023 thanks to the enduring appeal of RVing as an affordable and convenient way to enjoy outdoor experiences and to travel and see the rest of the country. The global RV Market is valued at $51 billion and is growing by 7% annually, and this has become a significant lifestyle choice for millions.
What many of those campers need now is reliable internet service, and this company had them in mind when the business was launched.
The company’s router and data plan suppliers are all based in the U.S. While the business is not impacted by seasonal factors, they do see a spike in sales during the summer months when new RV customers purchase their service.
The company has also enjoyed booming sales to rural communities in the U.S. and Canada, and their typical customer is 40 years old or older, and eager to get the most reliable internet service where they live.
Their routers also have a security system installed automatically to protect them from hackers.
Marketing
Facebook has been a strong marketing resource for the company. They maintain 1,300+ followers on their platform, where they also run PPC ads, benefiting from both paid and organic traffic.
The company’s Facebook ads offer customers a 7-day risk-free trial, the option to rent their equipment rather than purchase it, and month-to-month service, with the freedom to pause or cancel it anytime.
The company’s RV clients tend to stay on for 7-8 months or longer.
Their Affiliates Campaign remains one of the company’s strongest marketing tools, giving affiliates the incentive to bring on new customers for the commission.
This company smartly addressed a major need within the RV and rural communities, and their strong customer base and ongoing subscriptions give a new owner the opportunity to grow this one quickly, in multiple ways.
Contact SellerForce today to learn more about this rare investment opportunity.
Listing ID: SF361
