Featured Listing:  Software License Selling Business

About the business

Tell us a little about yourself. What’s your background? How did you start the business?

I have completed my law degree in 2012 and started working with Thomson Reuters. Soon I found myself not comfortable with the job things and I decided to quit to start something on my own. After several startups & failures, I founded Tecmanic in 2016. The First 2 yrs were challenging as I need to understand the industry first. The First 2 yrs were the learning phase, then I came to know about the Envato marketplace where entrepreneurs can buy readymade stuff to start any business.

I got excited & started working on it. We develop a few apps and published them on codecanyon (Envato). We got a nice response and by the end of 2021, we were an elite author on the platform and one of the top sellers in our category.

As an eCommerce business, where are your products made?

We are into digital products i.e. Ready to use Mobile apps, templates & installation services.

What can you tell us about your Customer Lifetime Value (CLV) and Customer Acquisition Cost (CAC)

We do zero marketing as codecanyon does it for us. We have a nice CLV as the customer often comes back to us to get support or custom services. Our avg CLV is $50 and practically we don’t have CAC however we pay a little share to the Envato per sale so we can count that as CAC which is 12%.

How have you marketed the product and where are your customers originating from?

We do organic marketing, yes we don’t spend it, as Envato does it for us. Our customers originate from the platform traffic.

Is the asset on your listing owner-operated, how much time does it take to run the business, who else is needed on the team, and what is automated?

Yes, it is owner operated. I usually spend 2-3 hrs daily to handle sales queries and I have 2 developers to handle support tickets and custom requests for which the client pays us extra like apps setup, reskin work etc.

• Sales process is automated however it can be taken care to boost the sales more.
• We have dedicated support portal where clients can raise a ticket, & we reply in 1-3 working days. No pressure at all.
• We receive the payments monthly and its completely secured.

What does someone need to do to continue operating the business in its current form?

It’s dammed easy to operate. When a law graduate can do it, anyone can do it. You just need 2 developers or maybe a few more if you want to increase the items, and you are done. We have an average revenue of over $4000 with an expense of just $850.

I can help the new owner with a smooth transition.

Growing the business

Can you list a few opportunities for a potential new owner to continue growing the business?

Envato is a growing market, they have recently touched $1B in revenue and we are an elite author on the platform with a great profile. New owners can add more items in the same or other categories to increase the monthly revenue.

To become an elite author is not easy, it can take from 1 yr to 3 years, depending upon the items and seriousness. Moreover, development time is extra because you need items to start your revenue on Envato.

What has been the evolution of this asset since its launch?

Our items have been getting great traction since their inception. One of our items is the top-selling item in the category. The best part is that you can update the items forever as their demand is always rising due to the grocery, food, delivery businesses are growing more & more.

How does this business make money? What are the current revenue streams?

We make a business from 2 channels.

1. Envato: We are an exclusive author on the platform and we make a handsome revenue from it since 2+ years
2. Direct: When clients buy our items or checked it out, in 50-60% cases, the reach out to us for sales query or custom request like to setup the app for them, to do a small or major change in the app & so on… and we charge extra for these work.

We are quite occupied with these streams.

What marketing channels are most profitable for the business?

Item Quality to get best sales, Google AdWords, Facebook posting.

How does the business currently acquire customers and what is your breakdown for marketing costs?

As I said, we don’t do marketing therefore our marketing cost is zero.

How big is your current team? How many people does it take to run this business?

I have a team of 3 including myself and we are sufficient to run & handle the business.

What’s the reason for selling your business on Flippa?

I am a serial entrepreneur and loves to try my hands everywhere. I have tasted eCommerce, logistics, gifting, technology and now I want to pursue a new venture. After the sale, I would like to go on a peaceful vacation to decide the next course.