Exclusive interview with the new owner of KeywordXP.com, a site purchased at auction on Flippa for $30,100!

Fresh off his $30,100 winning bid on KeywordXP.com, I got the opportunity to sit down with Karthik Magapu for an interview. Karthik gives us the scoop on KeywordXP and how he has built a web acquisition company with a portfolio of over 30 websites.

Tell us about your background as web entrepreneur.

In 2011 I cofounded Hummingbird Web Solutions. Our strategy has been to take over and nurture existing web based businesses. Since founding we have successfully acquired over 30 web businesses on Flippa, and our company now consists of over 50 enthusiastic web developers, designers and marketers who help to run the businesses that we acquire. Our portfolio consists of web businesses related to WordPress, Joomla, E-Commerce, Social Media, Online Marketplaces, and more. However, we are typically on the hunt for Software Product or SAAS based web businesses, where the business has a proven track record of sales and a history of active customers.

When did you start using Flippa and what keeps you coming back?

I have been a Flippa user since it was founded in 2009 and I have enjoyed watching the platform grow into the thriving marketplace it is today. Given the sheer number of high-quality listings there really isn’t any other platform out there that can compete. While it is important to always do your due diligence, I have found the majority of sellers are honest and genuine, and me experience overall has been very positive.

For those who don’t already know, tell us about KeywordXP.com what is the site about?

KeywordXP is a unique Search Engine Optimization (SEO) tool launched in 2012. It operates as a desktop app for Mac and Windows that performs complex keyword research tasks quickly and efficiently. One of the key features of this tool is the ability to extract exact match keyword data directly from Google’s keyword planner. Users can then analyze valuable statistics, trends, and graphs surrounding the data and make better decisions about which keywords to use. We currently have over 7,000 active users, and most of these users have been able  to dramatically boost their SEO results with KeywordXP.

From a business perspective, why did you ultimately decide to place a bid?

KeywordXP was a great acquisition for us because, while the business is not passive, it can be effectively run with a team. We like to find businesses where we can put a team of software professionals together to manage the product lifecycle, manage customer support, and market the product so it really was a great match. Aside from that, I very much liked the fact that the business was being sold by a reputed seller, Brad Gosse, and that the site had a proven track record in terms of sales and customers. I am convinced that SEO services and tools make up an evergreen market. The reason being that customers in the SEO industry are generally willing to pay for products and services that work, as the ROI achieved through the use of these products and services can be huge.

What are your plans for KeywordXP.com moving forward?

We have exciting plans for KeywordXP, and we’ll be carrying forward the great work that Brad and Paul (the previous owners) have already done. Some key things we’ll be doing over the next couple of weeks include:

• Actively promote the product to new users.
• Start offering SEO related services around the product.
• Relaunch the affiliate program, recruit new affiliates, and contact past affiliates.
• Improve the product to close the feature gap between other best in class tools in this niche.
• Bring customer support to a gold standard and continue to improve the customer experience.

I should also mention that we are continuing to work with one of the original owners, Paul Clifford, to chart out an exciting product roadmap. With the enhancements we are planning KeywordXP is set to be the leading SEO keyword research tool on the market.

Any advice for other web entrepreneurs looking buy websites on Flippa?

Having bought a lot of web businesses on Flippa I certainly have a few suggestions. First, do just as much due diligence on individual sellers as you do on the business itself. You can do this by looking up their Linkedin profiles, Goolging their names, and even setting up meetings on Skype. You need to determine if the person is (1) trustworthy, and (2) someone you would be comfortable doing business with. I usually wont even look at a business unless the seller is willing to share their full name and identity. My next recommendation is search for businesses that will allow you to add value. Unless you can add value in a business, you will probably see a negative return on your investment. Finally, to find the highest quality listings, you need to be actively searching. That means, visiting Flippa often and saving searches. I typically visit the site multiple times a day and I’ve got saved searches set up so that new listings launched with specific keywords are sent to my inbox. The more active you are, the more opportunities you’ll be able to evaluate before you find the perfect match.