Launched in 2020, this business allows gamers to buy digital items for use in
three popular video games, with most of the sales volume coming from one game.
The games themselves do not offer a way to buy these items, so rather than
spending time earning them in-game, customers can buy them directly on this
website.
Game items are created using custom software and delivered very quickly after an
order is placed to satisfy customers.
Customers love the service, with nearly
half being repeat buyers, an average LTV of $57.50, and a low refund rate of
~0.3% of order revenue.
Most of the business's sales are driven by successful, long-lasting ad campaigns
on Meta, Google, and Reddit. Some campaigns have not been changed in years but
continue to provide a strong return on ad spend. Social media is another channel
for driving sales, and accounts with over half a million followers will be
included with the sale as well.
There is also an email list of 118,000.
An 11-person team handles the vast majority of operations, including ad campaign
management and order fulfillment, while a developer manages the custom software
that creates in-game items. The owner built the website from scratch and now
spends about 3 hours per week on the business, though this workload can increase
if he's working on new features.
The business's earning potential is driven in part by external factors. For
example, when a game releases a new update, more people play it, leading to a
large uptick in sales volume and profits. Future updates are not guaranteed but
can lead to spikes in revenue and profitability.
The low asking price reflects both the most recent sales spike tied to a game
update and some of the risks inherent in this business, which are discussed in
further detail inside the full package materials. The owner is open to flexible
payment terms, provided that the vast majority of the payment is made in cash at
closing. This is not SBA-eligible.
Key Benefits:
Low Workload: The owner works very part-time, at only 3 hours per week most
weeks, unless he's working on new feature developments for the website.
Strong Team: Nine contractors manage order fulfillment, one employee manages ad
campaigns, and one contractor manages the custom software that creates the
in-game items. All contractors are expected to transition to a new owner.
Mature Platform: The frontend and backend services have been built and
continually improved upon for nearly seven years, reflecting a stable platform
for ongoing use in these three games, as well as potential future games.
Growth Opportunities: Optimize the recently added loyalty program, grow sales to
the other two games, pursue new games, provide more frequent marketing to the
email list, and improve cart rewards and on-site promotions.