Profitable B2B Website Development & Hosting Company with Over 1,400 Clients and Recurring Revenue
This B2B Website Development & Hosting Company has built up a client base of 2,100+ clients who pay an average of $98.14 per month for hosting and website support. The business brings in an additional $130,000 per month in setup fee income. They cater to the small business community, providing a suite of website hosting and support services.
OPERATIONS
The company helps small businesses grow by providing services that include writing content for each new website, optimizing it, and creating videos to help promote it. They have a loyal customer base, and more than half of the revenue comes from monthly recurring fees for hosting services.
The company has low overhead and a streamlined supply and logistics process for website hosting and support services. They have a team in place to handle client concerns and edit requests.
MARKETING AND KEY METRICS
The business has relied on paid ads on Facebook and Google for its digital marketing strategy. They could boost organic traffic through social media initiatives and content and video marketing. The company could also partner with industry associations and trade groups to attract new small business clients.
The company has relied on targeted PPC ads and cold calling to generate leads. They have an experienced sales team that successfully engages leads by phone. The company could expand its marketing initiatives to social media and international markets for further growth.
Key metrics for this business include the number of new clients acquired each month, the average monthly revenue per client, and the customer retention rate.
The customer base is heavily diversified across the SMB market. The largest single client represents less than 2% of the recurring revenue stream. The company has a high customer retention rate and has received positive reviews for their work.
BUSINESS MODEL & RESOURCES NEEDED
The company has a team of 35 employees who handle selling and building new websites, and a support team of 7 employees who handle client concerns and edit requests.
THE INDUSTRY
The website development and hosting industry is competitive but has significant growth potential. With the increasing importance of digital presence for businesses, there is a growing demand for website development and hosting services. Examples of companies in this industry include GoDaddy, Wix, and Squarespace.
OPPORTUNITIES TO SCALE
This business has opportunities to scale through enhanced digital marketing efforts, partnerships with industry associations and trade groups, expanding international sales, and raising prices. They could also leverage their existing client base for regular email marketing campaigns and explore content and video marketing for organic traffic growth.
Asking Price: $7,000,000
Gross Income: $4,084,982
Cash Flow: $1,411,726
Year Established: 2017
Employees: 43
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