26-Year Established Web Design & Marketing Firm with 131 Clients and Low 1.5% Churn Rate – 55% of TTM Revenue is Recurring
The company is a web design and digital marketing firm that offers a broad-based creative and technical skill set to their clients. Their experienced staff, with high-quality deliverables offer a manageable medium for select clients. Their services include brand strategy, project management, web design & development, digital marketing support, content development, and hosting & management.
OPERATIONS
The web design and marketing firm regularly executes projects ranging from $1,000 to over $100,000. The agency focuses primarily on professional service industries and has an expert understanding and level of expertise in the area. The organization has demonstrated elite strategy, design, and development skill sets earned from working with the most prestigious firms worldwide.
The agency primarily collaborates with other agencies and is open to providing services for other companies and agencies on a white-label basis. But because of its consulting and client-facing strengths, partner agencies choose to disclose their role and have the business interface with the client under their name.
MARKETING AND KEY METRICS
The team’s key marketing strategy is based on their exceptional long-standing reputation for delivering high-quality deliverables and client service within the professional B2B sector. Clients hire the team for their rational approach to billing, high ROI, and excellent value-adds. They gain many large clients from industry-specific websites while smaller clients get customized affordable solutions. Referrals from existing clients and colleagues drive lead generation, while liaisons re-engage frequently with the agency.
The company has much more potential for growth, mostly in expanding its service offerings, particularly in areas like SEO, content development, content marketing, and social media management. Adding significantly more capability and capacity in these under-tapped areas is low-hanging fruit, and the business has traditionally focused on the strategy, design, and development side of the organization. The agency has become more involved in social media management since a few clients requested help during the pandemic. They are currently on track to do more than $110,000 in digital marketing work from these few clients.
The company enjoys a low churn rate of 1.5%, and on average, their clients stay with the business for 5 to 10 years. With 131 current clients under management, only a handful has asked for a renegotiation of their fees during the 2008-2010 recession and the COVID low point.
The company has 131 current clients under management, with a primary focus on professional B2B providers. Clients range from industry-specific businesses, including general corporate, non-profit, travel, tourism, hospitality, and action sports.
BUSINESS MODEL & RESOURCES NEEDED
The owner focuses primarily on CEO and CFO duties, recruiting and hiring, invoicing, business development, senior strategy and consulting, account and project management for certain clients and projects, art direction, and some design and content development. The team includes a Senior Architect & Tech Lead, a Director of Design & Development, a Designer, and a Developer, totaling six employees. The agency often works with other experienced freelancers as needed, particularly for design, copywriting, specialized consulting, and video editing.
THE INDUSTRY
As a digital marketing firm, the company falls within the tech, internet & e-commerce industries. Their primary focus is usually professional B2B providers but have done significant work in industries like legal, corporate, non-profit, travel, tourism, hospitality & action sports.
OPPORTUNITIES TO SCALE
The agency has significant room to scale by expanding service offers in SEO, content development, content marketing, and social media management. Their primary focus is the professional B2B market which allows customization and flexibility in a niche industry. They are great in offering bespoke website solutions and affordable solutions for smaller clients. They could also scale by increasing staffing to manage larger projects, increasing referral marketing, and increasing business automation.
Asking Price: $850,000
Gross Income: $972,166
Cash Flow: $247,831
Year Established: 1996
Employees: 6
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