Touch a value for a 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.
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.
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
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
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.
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.
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.
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.
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:
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.
|Site Established ?||September 2011|
|Built With ?||—|
|Google Analytics Detected ?||Yes|
|Domain Registered ?||18 September 2011|
|Content Unique ?||Yes|
|Design Unique ?||Yes|
|Pages In Google ?||821|
|MajesticSEO Inbound Links ?||1,155|
|SEOmoz mozRank ?||2.6|
|Alexa Rank ?||1,693,371|