Tell me what you think.
It's a 10 year old e-commerce business.
Asking price is 100k
Owner financing with 25k down - remaining 75k spread over 3 years...
Product is naturally viral - website address is attached to product which drive sales.
Domain age - 10 year, PR3, horribly optimized... the home page uses an IFRAME, google cannot read much of sites content.
Basic SEO is non-existent on site.
Majority of traffic is referral.
Checked the last 3 YEARS of awstats - 60% of traffic is TYPE-IN - who knew there was such a thing!!!
Gets about 2k-3k unique visitors a month.
Gross revenue about 100k
Proft margin about 50%
Website is 10 years old... does not even use a shopping cart. The "order page" is really an unencrypted email form.
Owner manually types in email data into quick books and manually punches credit card data into a physical machine
Due to viral nature of product, sales have increased 10-20% per year.
Existing database of 10k higher end clients that have never been marketed to.
Product is considered the "high end/top quality" of the industry.
Products are drop shipped from China but suppliers are considered very reliable.
Business has one employee who can take over daily operations. Currently spends about 10-25 hours per week at $15 per hour. Owner spends about 5-10 hours a week in business. (depends on their busy season)
Since the entire system is horribly non-automated, lots of back and forth is unnecessarily generated with email.
For example - they have to manually send the customer a receipt and then manually send the tracking number. And when I say manual, I mean like MANUAL... i.e. copy and paste, attache receipt, write a quick note to the customer thanking them for their order...
The website encourages people to call, not all products are on website and most special instructions require a phone call.
I imagine I could eliminate about 50% of the labor involved within 30 days or less.
Owner is open to verification of all data. Provided access to account information, stats, accounting, quickbooks, etc.
Owner is willing to put the domain in trust with a lawyer while payments are made.
Owner will still be my wholesaler for a new version of the product for which she has the USA exclusive. Will offer support as needed although employee while retain much of the duties.
I just spent a few hours today on skype, listening in on customer phone calls and asking the employee questions.
What do you think?