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Drop Ship Poker Supplies $9675 Last Eight Months - Cash In Before Christmas

outplaypokerchips.com This site has been listed previously

Sold at Public Auction

$6,000

Bidding History: 11 bids
Started:
Sat, 01 Dec 2012 06:58:15 EST
Completed:
Thu, 06 Dec 2012 03:46:39 EST

Website Statistics and Collected Data

External Ranks

Google PageRank 3
Alexa Rank 1,693,371

Backlinks

Links in Google 15
MajesticSEO Inbound Links 1,155

Other Stats

SEMRush Keywords in Google 49
Domain Registration Date 18 Sep, 2011
View extended due diligence data for this listing

Description

Up for auction is a site I bought here on Flippa eight months ago for $5,000.

It is a poker supplies business offering customers everything from chips and tables to automatic shufflers and bobble heads. Revenue is fairly steady at around $1,000 or so a month with margins typically in the 30-40% range. 

Key features:

  • Built on the most robust ecommerce software available – Magento: For those that are unfamiliar, Magento is a Open Source, enterprise level e-commerce solution used by brands including Nike, Breville, Lenovo and Office Max. This means Outplay can compete with the big boys.

  • 100% drop ship model: The previous owner worked over two years to establish relationships with two leading distributors allowing the site to operate on 100% drop ship basis. This means there is no need to carry inventory and results in very little overhead.

  • Well defined brand name: Outplay Poker was launched by the previous owner in 2009. It is well known and has an outstanding reputation throughout the home poker community.

So why am I selling?

I bought Outplay with plans to grow to five figure a month revenue and resell it for 20 times what I paid. Two months after I bought the site I became involved in an offline business and got married leaving me very little time to implement what I had originally intended.

Since then I have basically neglected the site. Replying to the occasional email question and fulfilling orders as they come in. Customers come from organic Google searches and referrals. I've already had quite a few repeat buyers. 

Whilst I would like to hold onto it, my wife and I are planning on buying our first house soon and so I've decided to allow someone else the opportunity to take it to the next level.

Opportunities:

As I've said, I've had very little free time since I took over and so I haven't been able to implement a lot of my original plans for the site. With that said opportunities I see for growth include:

More traffic = more revenue 

SEO

The vast majority of current revenue is derived as a result of organic search traffic. I haven't added nearly as much fresh, original content as I would have liked. I believe doing so would give a great boost in the SERPs. As would some aggressive link building.

Competitors ranking high for mayor terms such as “poker chips” and “poker tables” are making $10,000s a month.

Some of the site's current rankings: 

“Cheap poker chips” 1st page, 2 overall

“Cheap poker tables” 1st page, 4 overall

“Cheap poker supplies” 1st page, 2 overall

“Poker supplies” 2nd page

“Poker chips” 2nd page

“Milano poker chips” 1st page, 3rd overall

“Poker table cup holders” 1st page, 8th overall

“Nexgen poker chips” 1st page, 8th overall

Paid search/AdWords:

For someone that knows what they're doing or as the money to pay an AdWords manager there is huge for potential for paid search traffic. This would allow for massive, instant traffic for mayor terms and given the site's low overhead could be extremely profitable if done right.

Social media: 

I have done almost nothing in terms of social media marketing. The site has its own Facebook and Twitter pages but I haven't touched either since I took over. There is tremendous potential for sharing daily poker tips, news, etc on Twitter and Facebook as a way of building a following. 

There are also a number of dedicated poker social networks which if leveraged right could greatly increase revenue. Some of the top advertisers on these networks rely almost entirely on these referrals and generate full time incomes doing so.

Increase margins/conversions for current traffic:

Hold some inventory:

I am an Australian that lives most of the year in Colombia. I have been able to run the business without a hassle due to its drop ship model. With that said, someone based in the United States could increase margins to anywhere from 70-100% if they decided to import directly from China.

 I have already been in contact with some Chinese manufacturers and would be willing to pass their details onto the winning bidder. 

Custom poker chips/supplies:

The custom poker chip market is huge in itself. High end custom clay and ceramic chips can cost upwards of $1 each with margins as high as 50-60%.

A few months back I contacted one of the world's leading, high end casino chip manufacturers and worked out an agreement to sell their custom chips on a drop ship basis. Unfortunately I never got around to advertising the chips on the site.

Online poker affiliate marketing:

Whilst the poker supplies market is large in its own right, the online market is far larger and more lucrative. Earlier this year an advertiser paid $200 for a single sponsored post on the site's blog.

Offering sponsored posts or links on the site is a highly lucrative potential revenue stream. I know of a competitor that makes $950/month just through sponsored links. There is no cost for him to provide the links and so that's $950 profit.

With the United States seemingly on the verge of legalising online poker there will be an explosion in the market and huge profits to be made. I won't lie online poker affiliate marketing is a highly competitive but the rewards are worth the effort. I have been told a single player can generate as much as $300 month for the referring site. 

Email marketing:

Related to affiliate marketing I have thought of using the site as a means of building a list. I have never tried email marketing but have heard it can be incredibly profitable. If the buyer were to tie this in with the social media plan mentioned above, if could be a great revenue stream.

Improve checkout design/usability:

The site's design is already miles ahead of some of its leading competitors but the checkout needs improvement. It is currently a painful 8 step process which then redirects to PayPal.

I am absolutely certain that improving the checkout could double if not triple conversions and therefore revenue. A huge amount of customers must abandon the cart as a result of the checkout process. Not improving it is probably the single biggest regret I have with the site.

Summary:

In its current state the site is a pretty good little passive income business. That said, its potential is going to waste and I need the money for a house.

For someone that has some time or a reliable team to work the on the site, the potential is huge. $1,000 a month net profit is a realistic 1-3 month target with some time and the strategies above. The sky is the limit after that.

Please send questions via PM and I will get back to you as fast as I can.

Payment:

I am open to using Escrow. HOWEVER buying and selling over $16,000 in websites on Flippa I have tried to use Escrow several times and every time it has been a huge pain and we have ended up using PayPal or bank transfer. Should the buyer insist on using Escrow I am happy to obliged however I will say through personal experience that it is a long, painful process.

My preferred option is that I provide a scanned copy of my passport and driver's license, buyer makes full payment for PayPal or bank transfer (if bank I will pay fees) and upon receiving payment I transfer domains and files.

Additional Revenue Details

Revenue from PayPal numbers:

April: 1502.71

May: 2650.65

June: 689.43

July: 1133.9

August: 1069.2

September: 1026.58

October: 512.49

November: 1090.08

Total in 8 month period I have had site: $9675 > $1200/month average revenue

As you can see the first two months were the best sales this has to do with two factors:

1.) This is when I first got the site and had more spare time to try and generate organic traffic, respond to customers, etc

2.) Seasonal: From about now onwards is the best sales period according to the previous owner. For this reason I'd like to let a new owner take over during the best sales period.

**December 2011 - March 2012 are listed as 0/0 as this is when the previous owner still had the site and I just want to include my own numbers.

**Net based on rough 30-40% average margins, I only have gross revenue numbers from PayPal

Additional Traffic Details

Analytics attached. Steady at roughly 1000 uniques and 5,000 PVS a month.

Comments

  1. Noavatar
    Posted by:
    epoch707 ( | $500 )
    Date:
    Sat, 01 Dec 2012 08:38:18 EST

    Since this is relisted, did the previous bidder fail to pay?

  2. Noavatar
    Posted by:
    andd ( | $22.1K )
    Date:
    Sat, 01 Dec 2012 08:41:46 EST

    Hey, this hasn't been re-listed. I won the site for $5,000, I am now reselling it. Thanks.

  3. Noavatar
    Posted by:
    epoch707 ( | $500 )
    Date:
    Sat, 01 Dec 2012 09:11:35 EST

    Also, since this is a dropshipping arrangement. Where is the dropshipper located (country)?

  4. Noavatar
    Posted by:
    andd ( | $22.1K )
    Date:
    Sat, 01 Dec 2012 09:13:45 EST

    In the US but they can ship worldwide.

  5. Noavatar
    Posted by:
    andd ( | $22.1K )
    Date:
    Tue, 04 Dec 2012 08:08:23 EST

    Just wanted to let everyone know I have another $300 in revenue since listing started. Likely a lot of sales still to come for December.

  6. Noavatar
    Posted by:
    andd ( | $22.1K )
    Date:
    Tue, 04 Dec 2012 09:33:35 EST

    Another $200 order just now brining total revenue for start of December to $500.

  7. Noavatar
    Posted by:
    rschon ( | $471 )
    Date:
    Tue, 04 Dec 2012 11:13:26 EST

    please send proof of income when convenient

  8. Noavatar
    Posted by:
    andd ( | $22.1K )
    Date:
    Tue, 04 Dec 2012 11:27:52 EST

    Please PM me with your email and I can send through proof of income

  9. Noavatar
    Posted by:
    andd ( | $22.1K )
    Date:
    Wed, 05 Dec 2012 06:28:42 EST

    Have added a screenshot of PayPal from last month. Notice multiple invoices. A lot of customers email before buying and rather than have them go through the rather painful checkout process (check it out yourself) I send them a PayPal invoice straight through.
    I am sure I lose a lot of business this way as alot of customers just add products to cart, try and checkout, find it painful and never end up emailing (and therefore completing purchase).

  10. Noavatar
    Posted by:
    paraditutorials ( | $5K )
    Date:
    Wed, 05 Dec 2012 11:16:13 EST

    1. Can you provide proof of the December orders you've mentioned? Also could I see proof of income before November?
    2. What is your net income for the past 8 months? Your total Paypal orders were $9675. When you subtract all the dropshipping costs and other expenses, you are left with what number for your net income? Or did I read your numbers wrong? Thanks!

  11. Noavatar
    Posted by:
    paraditutorials ( | $5K )
    Date:
    Wed, 05 Dec 2012 11:17:53 EST

    Lastly, you say the ordering process is loooong and complicated. I've noticed. Is it as simple as finding a newer theme to install that does not have the same issues?

  12. Noavatar
    Posted by:
    andd ( | $22.1K )
    Date:
    Wed, 05 Dec 2012 11:38:25 EST

    Hi
    1.) December orders have been uploaded via screenshot

    2.) I honestly don't know net over past eight months. As stated in listing I would estimate it at 30-40% of gross

    3.) I believe a new theme may fix this OR a perhaps simply alternative would just be editing the checkout template (I don't think this would be too complicated, never tried though). This is part Magento and part using PayPal website payments standard. If you decided to use PayPal payments pro or another well known payment processing solution you could process payments on site. This would greatly increase conversions.

  13. Noavatar
    Posted by:
    paraditutorials ( | $5K )
    Date:
    Wed, 05 Dec 2012 16:15:43 EST

    Thanks for all the updates. I would understand more about the checkout templates if I were to see them. But I'm sure it's not that hard to update them.
    Out of curiosity, would you mind uploading a paypal screen shot that specifically shows what email address was associated with the transactions? As in all payments to "admin@outplay.com" and then the list beneath that? I know you've posted screenshots, but those could be any account. I just want to check everything. Thanks!

  14. Noavatar
    Posted by:
    andd ( | $22.1K )
    Date:
    Wed, 05 Dec 2012 16:43:40 EST

    Good question. As a past buyer I understand your concern. I have uploaded a screenshot of revenue received by sales@outplaypokerchips.com. The blocked out row was a test invoice I sent to my wife. Names have been removed for obvious reasons.

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