This business is a Software as a Service (SaaS) platform that provides online gift certificate sales and management to retail store locations such as Spas, Salons, Massage Therapists, and Restaurants, but it works for any business with a physical location that wishes to sell gift certificates online.
The business enjoys high margins with an 91% gross profit and 88% discretionary earnings in the trailing-twelve-months.
Formed over 12 years ago in 2007, it’s had solid track record with an average annual revenue increase of 10% for the prior 5 years. In addition, it enjoys high margins with an 91% gross profit and 88% discretionary earnings in the trailing-twelve-months.
Digital or e-gift card sales are growing at a rate of 200% per year. In 2019, 87% of users preferred digital gift certificates with 45% electing to send them via text message. This system provides the most features and flexibility of all alternatives on the market.
Currently there are over 3,000 active accounts paying a percentage of sales to the business.
An existing affiliate network consistently brings in new clients, making up 56% of new clients in 2019, while word-of-mouth accounted for 36% of new clients. The 8% of new clients that came in via paid ads averaged a low $25 cost of acquisition.
The average client stays with the platform for 4 years and generates an average lifetime value of $520, approximately 2,000% higher than the cost of acquisition.
This business is operated on a total of 20-30 hours per week with a holiday surge pushing it to 40-60 hours per week during November and December. It can be operated anywhere in the world with an internet connection.
This business is currently under offer and therefore no longer available. Join the waiting list to be notified if it becomes available again
Walker Deibel cofounded three startups and has acquired seven companies, including an online business from Quiet Light Brokerage before becoming an advisor. He holds an MBA from the Olin School of Business at Washington University in St. Louis where he received the Declaration of Achievement in Entrepreneurship from the Skandalaris Center of Innovation and Entrepreneurship. Walker is a Certified M&A Advisor and former SEC licensed stock broker.
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