Private Equity Digital Asset Show - Website Business Models

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WELCOME

Transcript of Private Equity Digital Asset Show - Website Business Models

Page 1: Private Equity Digital Asset Show - Website Business Models

WELCOME

Page 2: Private Equity Digital Asset Show - Website Business Models

www.digistrats.com

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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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