Info Product eCommerce – Workout Plans – 3 Hrs./Week

IndustryFitness
Business ModelInfo Products
Time Commitment (from seller)3 Hrs./ Week
Age2+ Years
12 mo. Profit$45,000
Asking Price$120,000
Approximate InventoryN/A
Valuation Multiple2.65 X

Business Overview

Upward Exits presents a 2.5-year-old info product business selling workout and fitness plans. It requires very little maintenance due to not having physical products. The business started as a passion project that has been a one-man band since its inception. The owner is looking to sell the business as he has begun several other businesses and is looking to fund those projects.

Operations:
The seller currently operates the business on only about 3 hours per week. A new owner could continue to run the business as is or rapidly grow the business. Business growth could come from increasing advertising budget, expanding the subscription offerings and selling on third party platforms such as Amazon Kindle Direct Publishing.

Product:
The bulk of the sales come from info products which are delivered electronically to the customer. Add on products, such as branded t-shirts are sold and make up less than 5% of revenue.

Marketing:
The majority of the business’s revenue has been driven by Facebook ads and emailing the list of nearly 20k previous customers.
Return on advertising has increased in 2018.
The business is primarily marketed on Facebook and via email. The Facebook page has 74,000 likes and has a Facebook group with 4.3k members.

A buyer could quickly increase the profitability of the business by scaling up Facebook ad spend. Had the seller maintained the advertising budget he had in 2017, the site would be making close to $150,000 in profit for 2018

Valuation:
Due to the passive nature of the business and highly profitable advertising the asking price is $170,000 which is less than a 3x multiple of the annual profit.
The seller has been advised that if he reinvested the profits back into advertising and continued to grow the business that it would be much more valuable in 1-2 years. Knowing this, he has decided to settle for less money in order to invest his time and money in his other business ventures.

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