Offers Website for sale! $19K Yearly Profit

[SouthernTn]

Hi,

Another good sale has hit dnforum.com . Ibosystems.com

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:: Why is the business for sale ::
I'm a college student that created a site just for fun that ended up turning into a lucrative business. I'm finishing up my bachelor's degree and will be doing an internship and then starting a master's program and I doubt I'll have the time to do graduate school and business at the same time, so I'm considering selling the business.

:: What is the business ::
www.ibosystems.com We developed a completely automated system (called IBO Portal) over a period of two years that creates replicated websites for Quixtar IBOs (independent business owners) which are hosted on my web hosting account. Quixtar is the sister company of Amway and there are currently around 1 million IBOs which are potential clients.

We are the only 3rd party provider of IBO websites and we have a working relationship with the Quixtar corporation. Quixtar does not provide websites to its distributors. Instead, some high-level IBOs offer websites to their own downlines. Quixtar does not allow IBOs to sell their services to other IBOs that are not in their downline. Since we are an independent web development firm we are permitted to sell our sites to all IBOs, regardless of upline or downline affiliations. I would be happy to provide our point of contact to interested parties to verify our working relationship.

:: Services Offered ::

Web Sites – There is a working demo of our flagship service IBO Portal at www.ibosystems.com. IBO Systems launched the beta version of IBO Portal in July, 2003 and the official version in January, 2004. The system has run flawlessly with little involvement on my part. The system uses basic PHP and a MySQL database. Each client has a personal folder where they can upload images or files that they need to link to. Total space used on the hard drive for all 86 clients is 93MB and 1.4MB for SQL. As you can see, even a small web hosting account is capable of running this system! We charge $19.95/mo or $49.95/qtr.

We use 2checkout for our billing so they handle most billing issues like updating credit card info.

Domain Registration – We’ve partnered with Domain Discover to offer domain registration that auto configures domains for use with IBO Portal. No action is required to setup the domain on the part of the end user. Most clients use our service because of the automated features. Profit per domain is $19.95!

Business Cards – We’ve partnered with VistaPrint.com to offer free full color business cards to our clients to help them promote their websites. We earn $1 or more commission for each order.

Unified Communications – We’ve partnered with UReach Technologies to provide 800 toll-free service, email, faxing, conferencing, calendars, etc. UReach is the provider to Verizon. We work directly with the VP as they are very interested in reaching our 1 million potential client base. Competing services used by Quixtar IBOs cost twice as much. UReach has also mentioned providing us with a customized package because of the potential market we have. The affiliate account is setup and account signup just needs to be added to the IBO Systems website (we therefore don’t have clients using this service yet). We earn 15-35% commission per month. http://www.ucmax.com/login.htm?000124-9

Web Conferencing – We’ve partnered with LiveConference Pro to provide an affordable web based conferencing platform for our clients. The affiliate account is setup and the signup form just needs to be added to the IBO Systems website (we therefore don’t have clients using this service yet). We earn 25% commission per month. http://www.liveconferencepro.com/?13

 

[SouthernTn]

:: Revenues ::
Free business cards: ~ $100-200/yr

Website and domain registration income for the past 6 months:
Jan: $1287.30
Dec: $1872.20
Nov: $1926.90
Oct: $1966.50
Sep: $2381.05
Aug: $1981.80
Tot: $11,415.75

Assuming zero growth (highly unlikely) we should expect around $23,000 in revenues annually give or take.

See Income Verification .zip file for total income earned since business was started.

:: Costs ::
We pay $35 per month for our hosting account. We occasionally use PPC advertising (see below), which runs about $200-300 per month. Our system is totally automated so there isn’t much cost.

:: Marketing Used ::
Our current SE rankings for key terms are as follows (G = Google, M = MSN, Y = Yahoo):

quixtar presentation (G=1, M=3,4, Y: 2,3)
quixtar tools (Y=2,3, M=4, G=9)
quixtar ibo (M=3,4, Y=7, G=16,17)
quixtar opportunity (M=7,8, G=8, Y=13)
quixtar website (M=7, G=15)
quixtar business (M=7,8, Y=15,17, G=34)
quixtar business cards (M=1,2, Y=1,2, G=10)
quixtar prospects (Y=1,3, M=6,7, G=20)
quixtar (M=39, Y=60)

We occassionally will use Overture or Google Adwords for the keyword "quixtar" and that runs about $.10-15 a click if used. Since we started using PPC in January, 2004 we've found that we bring in $2-3 in immediate income (ie not including recurring revenue) for every $1 spent on PPC advertising. We've found Overture, Google Adwords, and Findwhat.com to be very effective advertising for us.

On 12-10-04 we started a new PPC advertising campaign via Overture. Since then we have spent $268 on PPC, aquired 16 new clients, and earned $619 in additional revenues.

We did a lot of PPC advertising early on during the first 6 months of 2004 and very little in the last six months. Here's some additional stats on how many clients we got per month for the last year:
• Jan(04) – 18
• Feb – 20
• Mar – 35
• Apr – 17
• May – 24
• June – 12
• July – 5
• Aug – 18
• Sep – 18
• Oct – 14
• Nov – 10
• Dec – 7
• Jan(05) – 9
Total clients signing up = 207
Current clients = 86

Network marketing companies have turnover rates of 95%+, but our turnover rate is only about 58%, indicating that our service must be adding value to our clients' businesses. Furthermore, we still have many of our original clients. With little or no PPC advertising over the past 6 months we've been able to maintain about the same number of clients. Spending $200-300 a month on PPC will only increase the client base.

For months where we used PPC advertising we made 3 times as much in revenues as we spent on the advertising! And that doesn't take into account that it is recurring revenue.

As of Feb 10, 2005 we’ve started up our PPC campaigns again at Overture, Google Adwords, and Findwhat.com.

See 2004 Search Engine Excel file.
See 2004-2005 Visitor Stats Excel file.

 

[SouthernTn]

:: Client Stats ::
Quarterly clients: 56
Monthly clients: 30
Total clients: 86

We’ve averaged around 100 clients give or take for the past 8 months or so. Since our clients are network marketers and constantly recruiting new people into their business, their constantly recruiting new clients (their downline) for us. It's like having a built in sales force that costs nothing. This is why we don't do a whole lot of paid advertising anymore.

:: What’s Included ::
• ibosystems.com, iboportal.com, ibouc.com, iboconferencing.com, ibodomains.com
• All files, images, and databases (~$5k in stock photography)
• All existing clients
• All affiliate accounts
• Any funds in Overture and FindWhat PPC advertising accounts
• Owner will stay on until May to insure a seamless transition for new owner and existing clients.

:: What’s required to run the business ::
Just very basic PHP and MySQL skills…nothing fancy. Everything is automated so the only thing to do is maybe add a new design template once in a while, and new features if you want, and answer basic support questions. Of course a web hosting account is needed. We have had ZERO interaction with most of our clients because it is completely automated so there isn’t much support to do. Mainly it’s just adding new features and/or templates.

:: Summary ::
I spent two years putting this system together in such a way that it would require minimal work on my part. Virtually everything that can be automated is automated. I've found that with my school load as an honor's student I don't even have enough time to add new design templates or add new site features, and I would really hate to see all my hard work be wasted. Unfortunately I have to decide between keeping my business and being mediocre at my future profession, or selling my business and being at the top of my game in my future profession. It looks like in the end my education has to take precedence.

I have lots of great ideas for growing the business, and plenty of cash to fund it…I just don’t have the time, and unfortunately time is not something that can be bought.

 

[SouthernTn]

Additional Information

http://www.ibosystems.com/ibosystems_se.xls
http://www.ibosystems.com/ibosystems_stats.xls
http://www.ibosystems.com/income_verification.zip


* We are looking for offers in the $XX,XXX Range. Please send your best offers!


Please PM or Reply with offers or any questions you may have.

 

[diverge]

I remember when Quixtar hit -- I was doing some work for an Amway diamond at the time developing pronetonline.com, which had stellar success in its launch as well. Too bad I didn't jump on the Quixtar tools bandwagon then. Glad to hear it has been profitable for you. Good luck to you on your sale.

 

[hostele]

sell this one yet?

 

[TrafficSecret]

how much is this for?

 

[Beenanza]

Nope. I bought it last March.