Niche: Music

Listing Details

Launched in January 2017, this digital product business develops and sells audio plugins and MIDI packages, catering primarily to music producers in the punk, rock, and heavy metal genres. The products, compatible with Windows and Mac OS operating systems, are designed to integrate seamlessly across virtually all audio editor applications. The business boasts a healthy conversion rate of 4.12% and a high returning customer rate of 42.44%, reflecting strong customer loyalty and satisfaction with the product offerings. Despite experiencing a slight year-over-year revenue decline of 3%, the company maintains robust profit margins of 38%, underscoring its financial health and operational efficiency.

The current operational structure involves the seller working approximately 10 hours per week on software development, website maintenance, and the creation of promotional materials, including ad videos. Additionally, there are two unofficial partners contributing to the business; one manages advertising campaigns, while the other is involved in creating promotional images, producing audio samples, and conducting market research to ensure the products meet market demands. Prospective buyers should note that ongoing product creation will require outsourcing, likely incurring additional costs. However, the existing team has expressed willingness to continue producing new products post-sale for a fee, offering an invaluable resource for seamless business continuity and product innovation under new ownership.

*Some products were created in collaboration with musicians. The musicians are typically paid an 8-10% commission/royalty on the net sales of these products. These expenses are recorded in the P&L under the ‘Collaborator Royalties’ line item. The collaborators are happy for the agreement to carry over with the buyer.

*There is one collaborator who has not yet agreed to allow the buyer to continue selling the product. They would like to meet with the buyer before agreeing to do so. Due to the uncertainty, we have removed the revenue and the commission/royalties paid to the collaborator for this product from the P&L and valuation. This changes the average net profit by $793. The buyer could continue selling the product if the collaborator agrees, however.