This SaaS platform launched in 2013 and provides a procurement solution for sourcing products from a major ecommerce platform. Growth in this business is strong, with YoY SDE up 94%. This business generates revenue from two core channels: hundreds of customers who pay for access to the software, and affiliate commissions paid as a percentage of products purchased through the software tools.
The core revenue driver is affiliate commissions, which account for 83% of revenue, and paid customer plans make up the remaining 17%. Including the owner, there are five developers, two support representatives, one executive assistant, and one business consultant. The owner has primarily relied on product-led growth throughout the business's life, as evidenced by the developer-oriented team.
There are no paid ad campaigns to market the platform, and user growth comes entirely from organic search and word of mouth. There are many avenues for a new buyer to pursue on the marketing side to drive more paid software usage and even more affiliate commissions. The SaaS platform itself is absolutely critical to the success of businesses that pay to source products through the software, and the more products are acquired through the platform, the stronger the strategic relationship with this major ecommerce platform becomes.
Every new onboarded customer drives affiliate revenue higher. Affiliate commissions are up 92% YoY, and paid customer plans are up 53% YoY. The owner has two young boys and would like to sell to spend more time with them.
He's committed to a strong transition to the new owner, and he believes the business has reached a point where scaling the next phase would benefit from an owner with greater operating capacity and resources. Key Benefits: SDE Growth: The seller discretionary earnings are up 94% YoY, reflecting strong customer growth and affiliate revenue growth. Mission Critical: The customers that use this software need it to source products for their businesses as evidenced by the tens of millions of dollars worth of products acquired through the software on an annual basis.
Mature Codebase: After 13 years of development, the core software offering is very strong; however, there are still plenty of opportunities to improve the existing tools and launch new tools. Existing Team: Eight team members manage the bulk of the business and are expected to transition with the sale. Growth Opportunities: Focus on marketing and outbound sales, continuing AI efforts to improve software, improving software offerings, and implementing more functionality to assist with post-sale management to improve customer workflows.