private equity digital asset show - website business models
TRANSCRIPT
WELCOME
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Of all businesses sold are eCommerce transactions
Total transaction volume based on BizBuySell data
Increase in SaaS / software business valuations; triple vol
First time buyers; most not strategic & unsophisticated
Average 2014 multiple based on data from BizBuySell
Sources: Centurica, DigitalExits, BizBuySell
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Service
Lead GenerationSoftware + Apps
eCommerce
Advertising (Content / AdSense)
Sources: DigitalExits, BizBuySell
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-SaaS, Lead Gen & Content are all up
-Avoid service business
-eCommerce businesses can be dangerous if dependent on Amazon / supplier
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-SaaS & content / media are considered to have the most value listing at the highest multiples
-Services have the lowest as they are un-scalable for the most part
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-Advertising & affiliate monetization models
-Risks: Google traffic or AdSense-dependent, blackhat SEO sites
-Opportunities: Passive models, intro products / lead gen, email marketing, higher frequency content
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-Pay Per Lead monetization models whether through a call center or just emails / forms / calls
-Risks: Google traffic or 1 client-dependent, blackhat SEO sites
-Opportunities: Passive models, email marketing, retargeting, higher frequency content
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-Physical product monetization models
-Risks: Amazon or 1 supplier-dependent; many buyers would rather create their own product from scratch / copy
-Opportunities: Email / video / social media marketing
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-Recurring subscription monetization model
-Risks: Developer is owner; time-intensive
-Opportunities: Valuable asset, upsells, email / social / video marketing, content
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-Recurring subscription monetization model
-Risks: Content creator is owner; time-intensive
-Opportunities: Upsells, email / social / video marketing, content
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-Transactional monetization models
-Risks: Critical mass
-Opportunities: Valuable asset, email / social / video marketing, content
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-Client monetization models
-Risks: Un-scalable, job rather than business
-Opportunities: Strategic purchase
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