Incredible opportunity to acquire a lead generation website within the lucrative and evergreen residential moving industry. Every time someone starts the moving process, they run to Google and search for deals on moving trucks and beyond. This business targets these exact people and generates revenue by connecting those searching with those who are selling.
Watch the video below to learn a bit more about the owner and his business.
What is the history of the business?
Originally purchased in 2015, the business was completely revamped in late 2015 to start fresh in 2016. The business has a completely new platform that was custom built and now generates 95%+ of leads via PPC (Google Ads) to have more control over the flow of leads. Previously, the business relied on partners for 100% of leads and did not have any marketing or paid advertising, which caused major problems when a partner would stop sending leads to us as they shopped around. PPC allows us to be in control of our supply.
The business has not only increased in terms of technology and marketing, but also strategic partners. A number of new partners have been onboarded in the past year to better diversify the available pool of lead buyers and thus, revenue streams.
Finally, the business has always been in need of a rebranding. The flagship site was initially MovingOrbit.com, but the acquisition of Moving.biz shifted this focus to the simpler, more brandable “Moving.biz” name with a modern, fully mobile friendly site. We also acquired MovingLead.com, which became the main way to attract moving companies, lead buyers, and lead sellers. MovingOrbit.com was eventually retired and remains inactive, however a new design is waiting in case the new owner wishes to resurrect that brand.
Why is the revenue trending downward from 2017 to 2019?
From 2016 to 2017, the business more than doubled in revenue and profitability. We negotiated better payouts with partners and relied on a key partner in particular to grow with. Both 2017 and 2018 were solid years, generating nearly the same in terms of total revenue. From 2018 to 2019, we lost a major strategic partner in July 2019 that accounted for nearly 50% of our total revenue. Despite this setback, we still finished the year strong with nearly $100k in net profit.
Realizing our mistake of relying too heavily on a single partner, we have taken steps over the past year to diversify where we send leads (our lead buyers). We have a larger pool of lead buyers now. In fact, January 2019 generated $6,274 in net profit whereas January 2020 generated $7,331, showing that we are just as strong, if not stronger, given our larger pool of buyers available.
Is MovingOrbit.com actively being used?
No. It has a fresh design available to use as well as a logo, but Moving.biz is now the flagship brand for the business.
What challenges or weaknesses does the business experience?
With any business, there are areas of weakness or opportunities for improvement.
As we learned last year, we cannot rely too heavily on any specific partner for continued growth. We have taken steps to diversify our list of available lead buyers and have gathered contact information for dozens of moving lead buyers and sellers. Many have been contacted, but we have not fully explored relationships with the majority of them.
Additionally, we have been solely focused on Google Ads for our leads. It would be better to leverage other lead sources, such as Microsoft Bing Ads as well as Facebook Ads. These are both massive sources of traffic for a similar price to Google Ads and should be explored. Ideally, all three sources would be utilized for leads, not an overreliance on a particular company.
What are you projecting for 2020 figures?
Originally, pre-COVID-19, we anticipated finishing similar to 2019 with a slightly lower total figure based on rolling averages. Now that we are nearly done with the year, we have a good idea of the total figure for 2020 — around $81k in net profit.
Is the moving lead generation industry seasonal?
Yes. The moving industry as a whole is most active between May/June to September. Multiple sources online show that upwards of 50% of Americans move between these months. With that said, the business generates revenue and is profitable year round — the biggest, most noticeable change is with the ad spend accounts, which fluctuates in terms of the ideal CPL (cost per lead) and the demand of our partners for lead volume.
Has COVID-19 impacted the business?
Yes. In early 2020, many moving companies across the US decreased budgets or paused their campaigns entirely. We continued to run our PPC campaigns and sell to aggregators, however their bids were lowered to offset the lower demand.
The business has been returning to more normal levels from July onward with each month since then being better than the last from a profitability perspective despite the summer months generally being the “peak” season. We estimate COVID-19 cost the business roughly $10-20k.