WebsiteClosers® presents a thriving Digital Marketing Agency designed to offer a simple onboarding and closing experience for clients. They have rapidly differentiated themselves in their industry through their ability to provide results for nearly all clients they take on, with a specific focus on working with those based in niche industries.
Their business is structured to take on many clients and keep the ones they find the most success in. They now have 47 active clients and 61% Net Profit Margins, and through their approach, the company sees little risk on their end while still enjoying high margins.
Business Broker Takeaways
1. Skilled Team. The brand has a capable team in place that will remain post-acquisition. This team is made up of full-time 1099 contractors that consist of a COO, a CCSO, an operations manager, an account/PPL manager, three account managers, two project managers, and an onboarding manager.
The current owner oversees sales, client strategy, and team management, but these responsibilities could be transitioned to a trained sales representative and strategist, which could reduce owner involvement by around 25%.
2. No Paid Marketing. Instead of relying on paid marketing to generate tier leads, the agency utilizes LinkedIn direct outreach to target potential clients. This process involves automation and manual engagement to reach their ideal prospects and generates nearly all of their leads: approximately 70 per week. The brand generates additional leads through word-of-mouth referrals from their pleased client base and their white-label partners.
3. Steady Monthly Revenue. The agency operates through two core pricing models: retainer contracts, which typically start as 90-day agreements before shifting to month-to-month or longer-term commitments, and PPL contracts, which operate on an on-demand basis for more flexibility.
Their retainer clients typically pay $1,000 to $2,000 per month, while PPL clients pay an average of $4,000 to $7,000 per month. While their average churn rate is 4 to 5 months, many clients stay well beyond this timeframe. The company also has a white-label arrangement in place, where partners onboard their own clients and outsource the work to them. Their partners pay them either per lead, per campaign, or on a fixed monthly fee.
Scale Opportunities
There are several avenues an ambitious buyer could take to scale this agency.
One notable opportunity would be through SEO and content marketing, which they have yet to properly explore. They could publish LinkedIn outreach best practices, lead generation tips, and industry insights to build a stronger brand image in the B2B space, while incorporating keywords to improve their organic traffic.
The new owner could also target new clients through paid advertising on Facebook and Google, and by building a referral and affiliate program. The latter would allow the company to take advantage of their clients’ willingness to promote them through word-of-mouth referrals and bolster their reputation further.
Another method they could take to grow operations would be by further automating their LinkedIn and email outreaches. They could add more LinkedIn accounts for outreach, improve their email outreach sequences, and hire and train commission-based SDRs to run their outreaches. Additional automation and staff would also likely reduce the owner’s workflow, allowing them to focus more of their time on scaling.
Outside of marketing, the brand could expand their PPL services into new niches. There are various industries such as SaaS, real estate, and financial advising where the PPL model is underutilized but sees high demand, providing an excellent opportunity for this company.
Conclusion
This acquisition is a great opportunity for a buyer interested in a profitable, scalable agency with a strong team behind them. An enterprising new owner could grow their margins and recurring revenue with the right marketing, and reduce their workload with some adjustments and additional staff.
