Back to Listings Listing #44589: Entertainment

Asking Price : $95,057

Annual Gross Revenue : $269,046

Annual Net Profit : $42,247

Profit Multiple : x2.25

Inventory Value: -

R-Index : 158

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From the Broker

This listing is for a subscription business created in January 2016 in the entertainment niche. The business sends customers based in the US and Canada a box including several products related to a popular form of entertainment. This is a business that brings in recurring revenue and has seen quarter-on-quarter growth in subscriber numbers.

All of the products for the boxes are sourced in the US. Purchasing products at wholesale has allowed the Seller to negotiate better rates as the number of subscribers increases. Since the products are ordered and shipped on a monthly basis, the business does require a fair amount of work, especially with planning and execution. It is worth mentioning though that the shipping is handled by a third-party fulfillment center.

To acquire new customers, the business uses a combination of paid advertising (Facebook, Instagram, and Pinterest), social media, and email marketing. There is also a blog on the website that features three new pieces of content per week. The content is mostly outsourced, but the Seller does write two posts per month.

Social media marketing is important for this business. The seller is active on social media and posts almost daily. Although there are associated profiles on Facebook, Instagram, Twitter, and Pinterest, the Facebook and Instagram accounts bring in the most amount of traffic.

The email list has over 2800 subscribers that receive a series of automated emails upon signup or a coupon lead magnet. A newsletter is sent out twice per month with additional emails if the Seller decides to run a sale.

Site Highlights

Average Monthly Revenue: $22,421

Average Monthly Expenses: $18,900

Average Monthly Net Profit: $3,521

* We are using the last 12 months to determine the averages.

Assets Included in Sale

Included in the sale of this business are:

  • 2 domains
  • All site content/files including photos
  • Cratejoy account
  • Stripe account
  • Mailchimp email list
  • Optin Monster account
  • Zendesk account
  • Email address
  • Google account for email
  • Social media profiles (Facebook, Instagram, Twitter, Pinterest)
  • WordPress blog site
  • Angel List listing

The business doesn’t normally carry inventory, but the fulfillment center may have product on hand before the monthly shipping date. Inventory is not normally included in the list price, further details can be provided to active depositors.

Work/Skills Required

Here’s a look at the work required to maintain this business:

  • Daily tasks:
    • Preparing/designing and posting social media posts on Facebook/Instagram and Twitter
    • Responding to customer emails within 24 hours
    • Monitoring social media posts for comments to reply
    • Preparing Instagram Stories a few times per week with blog posts information
  • Weekly tasks:
    • Creating blog posts (three times per week on Tuesday, Thursday and Saturday, including adding into WordPress and adding pictures/tags and scheduling of posts)
    • Posting weekly blog posts on Pinterest
    • Preparing and setting up Facebook and Pinterest advertising
    • Updating income and expenses in accounting program Xero
    • Monitoring incoming payments through Stripe
    • Managing cash flow
  • Monthly:
    • Creating and emailing newsletters to email list twice per month
    • Creating and emailing subscribers for any upcoming sales or spoilers
    • Paying outstanding invoices
    • Sending monthly box list to fulfillment center
    • Approving box layout before packing and shipping each month
    • Purchasing shipping labels and emailing them to fulfillment
    • Picking up leftover box(es) after packing
    • Taking pictures of monthly box for social media posts and blog post
    • Sending out box for professional photos every few months
    • Researching and negotiation with influencers/bloggers to send out boxes to for advertising
    • Coming up with blog post topics for the month and emailing them to ghostwriter
    • Monitoring incoming subscriptions as to not exceed the amount of product ordered
    • Updating the website and Cratejoy marketplace listing when the month’s boxes are sold out
    • Researching products/vendors for upcoming boxes, negotiating prices, and reviewing samples
    • Planning/Designing the upcoming box presentation
    • Ordering products and materials for upcoming boxes

Reason for Sale

The Seller is looking to sell this business because running the business takes a lot of time and they'd like to spend more time with their family.

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Listed By

Sale Pending: No

First Seen: Mon, May 14th 2018

Last Updated: Wed, May 16th 2018

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