Highly Ranked Mobile Game Developer and Operator in the Humor Category with 3.4 Million Users
This mobile gaming app developer and operator has been in business for 9 years with a massive user base of 3.4 million users LY. The top source of revenue comes from in-app purchases and advertising in their flagship freemium card game that has been downloaded over 25 million times. The business has enormous brand presence and offers about 5,000 cards for purchase between 100 different decks of various subjects.
OPERATIONS
The business model offers in-game currency that can be earned by playing, winning, purchasing, or watching reward video ads. The game is well-positioned to handle scale factors at least ten times its current state. The two owners have systemized this business incredibly well, they work just 3.5 hours weekly, with three additional employees involved in customer service and game development.
The business offers a steadily maintained set of game assets, which include non-fungible token (NFT) and readily available additional cards for Amazon. The company monitors Amazon email about physical box set stock levels as well as email the warehouse for possible additional shipments.
MARKETING AND KEY METRICS
The company optimizes its mobile gaming applications with the use of app store optimization, which includes title, subtitle, keywords, and preview screenshots. About 90% of users discover the game through app store searches. The primary focus of marketing is optimization and improvement through ad optimization, added decks, and enhanced subscription programs.
The business has massive opportunities for sales channel growth such as adding more decks, refactoring subscriptions to be simpler, focusing on the most prolific players with tournaments, customs decks, and daily rewards. A straightforward opportunity may lie in international expansion via simple translation, which could boost revenues into the stratosphere.
The business has enjoyed 25 million downloads and $5 million in revenue. Industry experts suggest that with Ad Optimization, the business has a lot of headroom for improvement in ad revenue. Additionally, the company can handle scale factors at least ten times its current state, proven during the pandemic, and more decks, tournaments, daily rewards and newer content motivates players and drives traffic when paired with good Push Notifications.
The company’s customer base consists of around 3.4 million users from all age groups and backgrounds with an interest a in card game. Most of the customers are based in the US, accounting for about 67% of its customer base with other countries like China and Japan accounting for 35% and 10% market share respectively.
BUSINESS MODEL & RESOURCES NEEDED
In the course of the company’s 9-year business experience, it is in touch with players who have been playing since their earliest days. At least two couples who met on the game are now married. The two owners have done an excellent job systematizing the business, working for just 3,5 hours weekly with three additional employees involved in customer service and game development duties.
THE INDUSTRY
Mobile gaming and gaming apps have taken the world by storm, with the market expected to grow to $143.7 billion by 2021 and $180 billion by 2022. With a user base of 3.4 million and over 25 million downloads, this business is a major player in the industry. The gaming industry is fiercely competitive, and users span from all age groups. Some top players on the market include Gameloft, Supercell, and Activision Blizzard.
OPPORTUNITIES TO SCALE
The company has ample opportunities for scale improvement. One option is to focus on Ad Optimization, which the company hasn’t yet focused on. By expanding their International presence, adding more decks, tournaments, daily rewards, new content motivates players and drives traffic when paired with Push Notifications, the company can withstand scale factors at least ten times its current state. Refactoring subscriptions to be more straightforward and focusing on the most prolific players with tournaments, custom decks and daily rewards, would all drive sales.
Asking Price: $1,100,000
Gross Income: $420,504
Cash Flow: $240,266
Year Established: 2010
Employees: 3
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