Digital Marketing Firm - Video Ads for Drop Ship

Tampa, FL
Hillsborough County

Asking Price: Annual Revenue:
$350,000 $263,995

Technology: Communications & Media

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RE: Digital Marketing Firm - Video Ads for Drop Ship Broker: Ron Matheson
Owner Financing is Available!

Quick Facts

Asking Price: $350,000
Annual Revenue: $263,995
Net Profit: Not Disclosed
Cash Flow: $96,579
Total Debt: Not Disclosed
FF&E: Not Disclosed
Real Estate: Not Disclosed
Year Established: 2019
Employees: 9
BBN Listing #: 597359418
Broker Reference #: WC 2756

Email or Print Listing

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Business Overview:

Website Closers® presents a Digital Marketing Agency that produces Video Ads for eCommerce Website Owners. The business is focused on helping business owners that use a drop ship model create demand through video marketing capabilities. These ads can be created without spending any time on creatives, with packages ranging from $55 to $75, depending on the number of variations requested.

At a time when video marketing has become a global industry worth more than $33 billion, this brand has attracted a strong client base among drop shippers who now represent 80% of their client base. These business owners have their own brand, and this company will find the necessary footage online and create their video ad from scratch. In the past two years the company has created 10,500+ video ads for their clients, and if there are any doubts about whether video marketing converts leads, this company has solid evidence: their work has generated a phenomenal $10 million in gross revenue for their clients. That has put enormous profits into the hands of their clients.

Video marketing has become an enormously popular and powerful tool for businesses today because audiences love it. A well-made video posted on a widely used social media platform enables a company to showcase to their audience what they do and the kinds of products they offer and becomes a more sophisticated way to engage with buyers. Videos can educate your audience about your company in a short amount of time, and it’s a way to help consumers remember your brand through the imagery you post.

Studies indicate that mobile video users share 92% of the videos they’ve enjoyed with their social networks, making this one of the most common ways for any business to share content and reach an unlimited number of people. Today 82% of companies believe videos are a critical component of their marketing strategy, and video traffic is expected to account for 80% of all online traffic by the end of 2022. This brand has capitalized on those trends and is becoming a leader in this booming niche vertical.

As noted above, this brand produces regular video ads for drop shipping companies at prices ranging from $55 to $75 per ad, depending on the number of variations. Their video ads are available in multiple packages, with the top one selling at $65 with 3 variations. That has become 60% of their gross revenue. Their upsells include a fast delivery for an additional $19, with arrival in less than 48 hours, and an extra story format for an extra $29. Their Average Order Value is now $80, and these video ads are in demand year-round, with no seasonal factors impacting sales.

The company also produces product pages for their clients, and can easily change the copy and photos. This is a service they charge $199 for, and which costs them just $20.20.

Their customer base is increasingly diverse, since the eCommerce drop shipping model has become enormously popular with business owners that don’t want to invest a lot of money up front in warehouse costs or stocking inventory.

Their typical customer is now a drop shipper testing several products per month, looking for a reliable partner for their video ads because they’re focusing on other aspects of their business.

As their customer base has grown, the lifetime value of their customers is now $300, and this brand has serviced more than 3,000+ customers. They are adding up to 15 new clients daily. Those customers keep coming back for new ads, and their Repeat Customer Rate is now a huge 50% of sales. They now produce up to 20 video ads a day.

Word of mouth referrals have been a strong tool for this company, since their clients have been happy to post testimonials about their work – on video, of course. These have been highly effective at expanding their customer base.

The company also uses social media to attract customers. They have social media platforms on Facebook, Instagram, and TikTok, where their content marketing and videos have helped drive sales. They are most active on Instagram, where they regularly post catchy content to build brand awareness. They also run PPC ads on Facebook and Instagram that are expanding their base as well.

Influencers have been a key part of their marketing strategy. Right now, 10% of their revenue is coming from influencers on their social platforms. Another key aspect of their marketing is email campaigns. The company has a database of 4,000+ subscribers who are kept up to date on their package deals and trends in video marketing. The company also employs an SEO program to boost organic traffic to their website.

There are enormous scale opportunities available to a buyer, simply by enhancing these marketing efforts, which would certainly drive sales higher. With video marketing being one of the main advertising tools for businesses today, this company has a major growth option simply by reaching more of those drop shippers through their own digital marketing efforts.

A very turnkey operation, the current owners spend as little as two hours per week working on this business, and have an experienced full-time team that handles daily operations, including a COO who manages marketing and daily tasks, two customer support managers, three copywriters and three video editors who create the videos based on the work created by the writers. Strategizing is the main task handled by the owners today.

With very low working capital requirements, an appreciative customer base and strong recurring revenues, this company is in just the right position for a major growth curve.

This Digital Agency is Represented by:
Website Closers
Technology & Internet Business Brokers
WC 2756

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Additional Details:

  • The property is owned.
  • The owner is not willing to train/assist the new owner.
  • This is not a homebased business opportunity.
  • This is not a franchise resale opportunity.

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