Image

Our team at FE International is heartbroken at the devastation caused by Hurricane Harvey in Texas and Louisiana. Our thoughts are with those displaced by this disaster, and hope that everyone affected has found the support they require in this trying time. If you would like to contribute to the massive relief efforts underway, here are a few organizations you can donate to: Red CrossHumane SocietyFood Bank of Corpus ChristiHouston SPCA, and Houston Food Bank

Hey [subscriber.name]

Congressional hearings to decide on net neutrality were postponed this week after tech executives from giants like Amazon, Google, Facebook and Netflix declined an invitationto testify, despite Apple’s letter to the FCC that the Internet should remain an open platform. This is a topic that we at FE International are very passionate about and would advise anyone with an active interest to voice your opinion on the measure by writing to the FCC.

The other major news this week was around the completion of Amazon’s acquisition of WholeFoods. Amazon’s first action was to cut the price of some goods by up to 43%, seemingly as a tactical play against Google’s recent partnership with Walmart. Speaking of Google, their saga of ad problems continues, with recent reports of fraudulent ad clicks driving them to reimburse disgruntled advertisers. Online business owners who use AdWords should watch for a letter from Alphabet in case their ads have been receiving fraudulent traffic.

Despite the holidays not quite being over, we listed another $1.4M in new businesses this week, including a highly profitable B2B affiliate site in the software and tutorials niche that sees revenues of $41K gross per month. This website ranks for c.14,500 keywords with hundreds in top 10 positions, and boasts strong traffic of c.500,000 sessions over the past year. Also listed this week are two new SaaS businesses, the first of which is a $2K MRR B2B project management site in the business operations space with c.120 customers and heavy traffic of over 125,000 sessions and, a SaaS company in the route optimization niche with over 150 customers, extremely low owner involvement and a very low customer churn of just 5%. We have already received a significant number of inquiries about these businesses, so be sure to request more information today if you’re a buyer who would like to learn more!

In entrepreneurial news, CEO Ismael Wrixen wrote his first post for the business savvy Startups.co blog, where he shares his years of experience in entrepreneurship, investing, and leadership as CEO to discuss what it takes to craft a solid pitch to potential investors. Founder, Thomas Smale is also set to kick off his busy September conference schedule next week, starting by speaking at the Seller’s Conference and MerchWorld, both in Seattle on the 6th and 7th of September respectively. Be sure to reach out and set up a meeting if you are planning on attending.

Continue reading for more on net neutrality, Google’s fraudulent AdWords traffic debacle and Amazon’s shuffling of WholeFoods pricing.

Deal Highlights

New:

Affiliate – B2B Software & Tutorials – $41K gross/mo

  • Rapid revenue growth, reaching c.8.4% compound monthly growth rate over the last 12 months
  • Exclusive partnerships with 4 industry-leading software providers
  • Strong traffic with c.500,000 sessions in the last 12 months
  • Keyword rankings for c.14,500 keywords with hundreds in top 10 positions

Yearly net profit: $489,000
Asking price: $1,296,000

SaaS – B2B Project Management – $2K MRR

  • Diversified customer base with c.120 customers
  • Authoritative position as a project management tool for Trello due to early entry into the niche
  • Strong and stable MRR closing in at over $2,000 in July 2017
  • Sticky and engaging web App with c.125K sessions in the last 12 months alone
  • Low owner involvement

Yearly net profit: $21,000
Asking price: $90,000

SaaS – Route Optimization – $1.9K MRR

  • Diversified customer base with over 150 customers
  • Authoritative position with years of operation in the route optimization software niche
  • Customer churn rate averaging c.5% over the last 12 months
  • Low owner involvement

Yearly net profit: $10,100
Asking price: $47,000
Image

In the News…

Where do you Stand on Net Neutrality?

In 2015 the FCC (Federal Communications Commission) implemented the highly popular net neutrality rules. This means that Internet Service Providers (ISPs) cannot block or speed up access to particular websites, or allow people to pay for higher Internet speeds to their websites. While 60% of people polled just last week are in favor of this rule, the new administration, and 17% of people polled, are working to end these protections.

Need an example? OK, let’s say you were watching Netflix on Wednesday, then on Thursday your ISP decides that it is going to slow down speeds for Netflix and speed up the Internet for competitor Hulu. This would be possible if ISPs have full control over Internet speed, and other services are going to have to fight to be at the top of their class. For small businesses especially, it will be imperative to know where you stand against your competitors’ ability to outbid you for Internet speed should this measure pass.

While most legisltators are in support of net neutrality with an average of 60% being in support of the FCC’s current decision, that does not necessarily mean the popular vote will win. The stand-off has been going on for months but the decision is on the horizon. The FCC closed its comment process Wednesday night.

The Google Ad Saga Continues

Last week we shared an article that focused on the changing landscape of using pop-up ads on Google for your marketing, and the impact Google’s plan to stop using them to positively increase the user experience. This week, the Wall Street Journal announced that Google is now refunding accounts that paid for ad engagement due to fraudulent or invalid traffic.

While the fraudulent traffic is small relative to the volume of impressions and spending, a recent report estimated that fraud could waste $16.4 billion in ad budgets this year, from all over the world. This could cause advertisers to not be as aggressive in the ad game, which is bad for Google’s business. If Google reaches out to you regarding this issue, be sure to inquire further to discover whether you are owed a refund.

This is not only Google’s problem. Facebook also has recently had to issue refunds for various mistakes and measurement errors. Fraudulent or invalid traffic is not just a financial concerns to advertisers but it is also a viewability and brand safety issue.

Amazon Repositions WholeFoods

The e-commerce market is constantly changing, but who knew we would have to keep a watch on grocery stores as we assess the positions of key players in the field?

On their first day of operations, Amazon cut the price of some good at WholeFoods by up to 43%, likely to even the playing field between them and their growing e-commerce threat, Walmart. The strategic play seems to come as a response to Walmart strengthening their position in the e-commerce space. Amazon’s response? Strengthen their position in the brick and mortar world. Amazon Echos and Echo Dots could be seen on display at the health food chains, in a technological pivot to position the two brands as staunch partners.

While consumers who frequent WholeFoods are likely to be ecstatic at the news, commentators have noticed that Amazon is willing to do what it takes to position themselves as the dominant player in whichever category they enter.