Cheap Customer Acquisition: A Strategy for eCommerce Brands

– MicroAcquire is a valuable resource for industry insights.
– A company raised $300k in funding but only made $80k in profit in the last 12 months.
– The company is being sold for less than the funding raised, making it a potentially cheap customer acquisition opportunity.Consider acquiring struggling companies with a large customer base and valuable email lists to expand your own business and collect more data for targeted marketing.I love MicroAcquire for keeping me informed about industry happenings. They raised $300k in funding, but after 5 years, they have only made $80k in profit in the last 12 months, even during a pandemic. They have a total of 50k customers. The asking price is less than half of what was raised in funding. The selling price, speculatively, is about what a competitor might spend on advertising in a month. I don’t know the quality of the list or the market they were serving, but from a raw business numbers perspective, this could be considered cheap customer acquisition at roughly $2.90 per subscriber, which is significantly lower than current industry norms by about 3-4 times. Alternatively, it could be a nice redirect URL to a landing page that moves customers over to a competitor, especially for any other brand looking to expand into a different demographic. I believe we will see more stores like this that never break through for various reasons and end up selling for less than their funding. Consolidation will continue to happen, and companies that acquire these stores will team up with companies like mine to retarget the subscribers, gather more data about them, and turn them into profit. This is the strategy I would adopt as an established eCommerce brand right now. You could also do this with complementary products. The value of these companies lies not in their sales, but in their email lists. All of these companies would sell for much higher prices if there was buyer intent data relevant to the customer journey. #marketing #ecommerce #customerjourney

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