Flippa
For Sale

Private Listing

Business Model
Advertising
Industry
Sports and Outdoor

$300,000

Asking Price

Facts and Figures

Location
-
Date of Founding
2008
Full-Time Staff
-
Avg. Expenses /month
$5,082
Avg. Profit /month
$5,570
Avg. Revenue /month
$10,652

Business Description

The Business is an online sports publication, founded in 2008, that delivers cutting-edge sports content for a passionate reader base. The site covers a variety of different sports leagues including the NFL, NBA, MLB, NHL, UFC, English Premier League, Major League Soccer and the NCAA. The publication is managed by Derek Hanson, who handles the financial and strategic aspects of the business, and Matt Birch, the site’s Editor in Chief.

The revenue streams for the website include premium display and directly-sold advertisements on-site, as well as syndication fees from our strategic content partners. Content for the site is produced by a stable of over 80 writers, who are compensated as independent contractors on a pay-per-page view basis. The site’s strong media partnerships and profit-sharing model have allowed the site to maintain consistent profits with low overheads.

Operations

Business Administration

  • Accounting (0.25hr/week) Reconcile accounting logs across bank accounts, Paypal, and credit cards
  • Payments (0.25hr/week) Tabulate traffic totals for each writer through Google Analytics and make monthly writer payments through Paypal.

Sales

  • Direct Ad Sales (6 hr/week) Negotiate direct advertising sales with clients and publish sponsored content. During the weekday, there are typically 8-10 inbound emails to respond to from potential clients. On weekends, there are typically 3-5 inbound emails.
  • Display Advertising (0 hr/week) All display and video inventory is fully managed by our media partners.

Content Production

  • Content Strategy (1 hr/week) Discuss general content plans and staffing with site editor.
  • Writer Recruitment (0.5 hr/week) Outreach to and onboarding of new writing hires.
  • Writing (0 hr/week) All content is produced by our writing staff.

Technology Support

  • Site Maintenance (0 hr/week) Our platform is fully maintained by the tech support staff of our media partner.

Customers

Site visitors

Customer Profile and Segmentation
  • Our top target demographic is males ages 18-40 years of age who are interested in sports. Our traffic is primarily based out of the US (~90%), Canada (~5%), and the UK (~2%).

Customer Acquisition

  • We receive approximately 20% direct traffic. The majority of our non-direct traffic comes from organic search (~45%), referrals from other sports media outlets (~25%), and social media (~5%). We do not pay for any traffic.

Customer Retention

  • Traffic to the site has remained consistent. Given the large amount of content produced and our media partnerships, we have stable traffic funnels. Our newsletter statistics are good with a approximate 30% open rate and ~10% click through rate. Building out the newsletter subscriber base and making consistent mailings would be an opportunity to grow the return audience further.

Advertisers

Customer Profile and Segmentation

  • All display and video inventory is managed by our media partner. However, we do work with a large number of online marketers (client list of over 1,200) who purchase sponsored posts and links from our site. These marketers primarily target sports betting and sports apparel niches, but will also provide content covering a number of other areas.

Customer Acquisition

  • We receive a large number of inbound requests from our site contact form. During the weekday, there are typically 8-10 inbound emails to respond to from potential clients. On weekends, there are typically 3-5 inbound emails. The conversation with these marketers typically follows a similar pattern, so we have developed scripts that can be quickly copied and pasted to cut down on the time needed to respond.

Customer Retention

  • We maintain a list of all our clients and will send out periodic email updates to former clients to keep our publication on their radar. Due to the quality of our site, our quick response times, and customer-friendly approach, we are frequently able to achieve repeat sales.

Inventory

Units
-
Value
-

Highlights

Strengths

  • Established publication with deep roots in the sports media industry
  • Great content-specific brand
  • Close partnership with one of the largest US media conglomerates
  • Consistently profitable business model with low overhead
  • Minimal time commitment required (approximately 8 hours/week)
  • Hands-off, enterprise-level technology with full support through our media partnerships
  • Access to premium advertising through our media partnerships
  • Access to high-quality photo library through our media partnerships
  • Writing staff of over 80 individuals
  • Email newsletter list with over 30,000 subscribers
  • Client list with over 1,200 leads for direct advertising sales

Opportunities

  • Expand writing staff and fill content gaps to round out coverage
  • Develop an SEO and marketing plan to further boost traffic
  • Increase social engagement to funnel traffic
  • Grow newsletter subscriber base
  • Optimize direct sales through subscriptions and referral programs

Seller Notes

The financial information displayed on the listing is the classified as Seller's Discretionary Earnings. There are inconsistencies in the P&L compared to the the supporting evidence in Quickbooks. This is due to differences in the accounting method for Quickbooks and the P&L (cash vs. accrual).

The Business has been online for over a decade and has undergone several format and partnership changes. Through this time, the solid fundamentals of our business plan has allowed the site to adapt to these changes and remain profitable. Most recently, in July of 2017, we lost our main media partner due to some internal changes at their company beyond their control. Even without this partner, we were able to maintain our profits through our revenue-share model. In April 2018, we were able to strike a new partnership with an even larger media partner that has provided us with a top-notch technology and advertising package.

We are confident that the model we have put in place can continue to be successful and profitable. We are open to sharing the knowledge we have gained from running the site over the past 10 years and will provide 3 months of post-sale support to the purchaser.

Our site is a satisfying business opportunity for any sports enthusiast and provides the opportunity to run your own sports media outlet. Our partnerships, branding, and technology provide immediate legitimacy and the opportunity to scale the business. An enthusiastic buyer with a good work-ethic will be well-positioned for success.

Assets

  • All Existing Accounts
  • Post Sale Support
  • Customer Database
  • Social Media Accounts
  • All Associated Domains
  • Primary Domain & Site Content

Post sale support

This is support provided by the seller when transitioning the business to a buyer.

Not Included

About the Seller

Private Seller

Derek H

United states

Derek is a sports enthusiast who is passionate about creating conversation and debate around compelling sports topics and news. He is a self-taught web designer and launched his online business as a way to earn extra income while completing his medical training. He currently practices as a pediatric oncologist in addition to his role of managing the business end of the network.

Contact Seller