Facts and Figures
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Note: Traffic data was provided on 21 May 2021. Enquire for more recent data.
Arrigo here, founder of Koala Rank, an all-in-one content marketing service for small B2B firms looking to scale their inbound lead generation efforts with original content.
Koala Rank is currently sitting at $7500 Monthly Recurring Revenue (MRR), which translates into ~$90000 Annual Recurring Revenue (ARR). We've gotten to this point thanks to strong growth in March and April 2021, a trend that continues to show real business potential.
There are 2 key strengths to Koala Rank as a content marketing agency and as a business asset:
» 1. We're a low-code technology powered startup with a semi-automated production process which gives customers a complete view into their content strategy without us having to reach out manually at every step. This goes for the production process as well, where each content piece in production is shown as a "Piece" in our client portal. Based on our backend process, outlines for these pieces are submitted automatically once a new concurrent production slot becomes available. Customers have a varying number of production slots depending on their plan: 1 for Basic, 2 for Standard, and 3 for Premium. Our customer base (made up of small B2B firms) is spread out evenly across all three plans so there's value in each of them.
» 2. We've invested heavily in our branding efforts, achieving an image that is just as high-quality as some top-tier brands, with consistent positioning and messaging throughout 100s of touch points, all accurately listed in a spreadsheet with information on last updates. With a total of 15 5-star reviews already live on the internet, a Domain Rating / Authority of 34, a professional-grade WordPress website, and a heavily-personalized white-label client portal to back it up with the value our customers are looking for, Koala Rank enjoys one of the most uniquely-recognizable images in the content marketing agency space.
I want to be honest in telling you that Koala Rank enjoys a good business model and growth potential with the big drawback of me as a founder not knowing or following management and financial best practices.
Everything is documented in Koala Rank, you won't find a single process that isn't explained either on the customer or the team end. However, with me coming from the freelance world and not being able to see the "bigger" picture, it was always hard to figure out what the management structure of the business would be.
This is primarily because Koala Rank was born as an experiment that turned into a success. But also because I don't have a business background; I've taught content marketing myself as I was building Koala Rank, although I already had some experience in the past working as a content writer and by building a variety of "hobby" blogs.
Expenses at Koala Rank are relatively high for a small company but not unmanageable, and they can be reduced significantly. We're currently spending ~$2k/month on a variety of software suites and services that power our customer experience. With that, you have to consider around $140-160 per customer account spent on creators on average (we don't spend so much for certain accounts, and we may spend a bit more for some higher tiers).
We currently have 15 accounts active (both monthly and quarterly) so about $2250 goes into direct work from freelancers. We've just recently launched a "Creator program" to drive the cost of this down since freelance platforms take 20% of the cut which is a lot.
These are the 2 main major expenses we have:
» 1. Software at ~$2k per month
» 2. Direct work at ~$2.25-2.5k per month
This wouldn't be as much of an issues if high sales taxes in Italy wouldn't come into play (~30% of all sales), and if we didn't count in the new efforts of bringing in team members. You can see why this is turning into a burden for me both management and finances-wise.
With all of this outlined, the right pair of hands will understand how to take Koala Rank's existing assets and turn them into a full-force, tech-powered service that goes head to head with the likes of Design Pickle and Verblio.
The asking price for Koala Rank is less than a year's worth of valuation, $65000. That's to purchase all the assets, including website, fully-customized client portal, Airtable bases with all automations and assets tracked down to the smallest detail, and access to all tools and processes.
If possible, it would be great for me to get hired on a full-time basis from the person who buys the business so I can continue to provide value with less of the stress on my shoulders. That is the ideal solution as it will help us effectively turn Koala Rank into a viable long-term business with me working in the backend and you in the front-end.
I will also be able to advise on aspects of Koala Rank's business model that may or may not make sense and how we should move forward with certain parts of the business. For example, we've recently launched a few SEO services based on customer demand and I see increased demand for pairing both content and SEO together in one package.
We have considered adding websites to our offering but it's not the core of what we do, so we're simply testing the service out with a few customers. Koala Rank is poised to benefit from going horizontal in its service lineup as we can integrate most of the processes into content and vice versa.
If you have any additional questions or anything that you'd like to know, please reach out. I tried to include as much information as I could but there is a lot that I've built in the last 2 years and it's hard to go through all of it here.
Looking forward to your offers.
How does your business make money?
Koala Rank makes money by selling a monthly or quarterly subscription that enables small B2B firms to get a complete, 360-degree content strategy as well as the original content and reporting to back it up.
The service is offered with a discount on the first month for prospects who watch the demo, and it's then renewed automatically every month or quarter via Stripe. This has proven effective, with customers staying for the long-term.
All parts of the business model (except our new "SEO" services) are fully-systematized behind the scenes. This means that you'll be able to track key metrics related to our business model for each individual project.
Koala Rank has only partnered with trusted small B2B firms in the past and we've never accepted any "shady" business or things that would increase the risk of running the company. Prospects are able to purchase plans directly from the website or after a sales followup.
Why are you selling this business?
The reason why I am considering selling Koala Rank is that our Q1/Q2 2021 growth has led me to make a series of investments which have brought a degree of complexity when it comes to automations and overall customer experience which I didn't expect at all.
One of these investments is a white-label reporting tool that automates weekly reports on our behalf. This comes from most of our customer base requesting weekly reports almost all at once. While I understand the need behind this type of structured reporting for most companies, having to do it for 20 campaigns out of nowhere has brought significant stress in my life as a founder.
Also, these investments, including 2 team members to help with account management, have brought a degree of financial burden that I've never been used to managing myself. Coming from the freelance world, I was used to managing myself, and that worked out great for a while.
However, Koala Rank is turning into a full-blown business that requires proper agency economics, financial analysis, and management practices. I find it very hard to learn all of these concepts while having to run operations every week.
In an ideal agreement, you as the buyer would purchase the rights to use all Koala Rank assets as yours and hire me as an operations officer to keep the ball rolling on the backend production processes. I'm a technical guy so dealing with a lot of communication is stressful to me.
Whether you choose to do so or not, I will still offer 6 months of post-sale support since Koala Rank has a lot of moving parts that need to properly-understood before deciding whether to improve, restructure, or delete them.
You as the buyer will own all the rights to all Koala Rank business assets, including the customer base, financial accounts, and everything in between. Since I care about the success of the company though, an ideal solution would be purchasing all the assets and then hiring me on a full-time basis to run the backend operations as well as advise on where to go next with the business model.
- Brand assets
- Contracts (written or verbal) with customers and suppliers
- Custom technology
- Customer databases
- Hosting accounts
- Marketing materials and collateral
- Policy and Process documents
- Registered trademarks
- Relevant email accounts
- Social media accounts
- Vendor contacts
- Website files, source code and content
Post sale support
This is support provided by the seller when transitioning the business to a buyer.
About the Seller
Founder at Koala Rank: a content marketing agency for B2B firms focusing on building and retaining an engaged audience from scratch. No code automator.