Premium Turn-key Adult Video Chat Webcam Platform
NCListing DetailsOffice ID: CHAT1
Listing Broker: Jeff Snell, CM&AP, M&AMI, LCBI, ABI
Listing Price: $4,500,000
Gross Revenue: $1,972,435
Cash Flow: $626,154
FF&E Included: No
Sales Structure: Asset Sale
Seller Financing: Yes
Financing/Terms:Because the site uses pre-paid tokens (which represent a contingent liability) a credit will be due buyer based upon a formula discounted based upon actual historical redemption rates.
Reason for Sale:Other interests.
Training:Seller will provide up to 80 hours of transition assistance.
OperationsYear Established: 2010
Form of Ownership: LLC
Employees (full-time): 10
Business Hours: 24x7x365
This business has absentee ownership potential and is marked as such although the current owner does choose to manage some portions of the business. Current owner works several hours per week and could easily be replaced with existing staff or incremental hire.
Technology is one of the companies core strengths which is evident when reviewing the state of the art platform featuring an exceptional mobile experience.
Over the past ~18 months over $200,000 dollars of contracted labor and research and development have gone into the new mobile platform which is fully custom, top of the line featuring the best user experience possible. It also allows hosts to work remotely from anywhere with a mobile device and internet connection - anywhere and anytime they feel comfortable without the requirement of a large desktops or bulky laptops with power requirements.
There is over three years of Return on Ad Spend (ROAS) reporting, graphs and data through the companies proprietary SEO and in-house marketing campaigns revealing in excess of 400% ROAS and as high as 615% return.
The platform features native mass communication services, mass email features, mass text messaging features, SMS features, individual SMS alerts, back-end security, back-end analytics, robust reporting features for both primary and studio accounts.
Full RTC compliance recently completed as well as crypto payment integration
The merchant processing system is efficient and easy to use having been recently updated and augmented resulting in some of the lowest charge back / fraud performance in the industry.
One of the most exciting features offered by the platform are "studios" which is where an individual can configure an account on behalf of hosts to share expenses such as performance space on a commission sharing basis.
The intuitive admin portal comprises all necessary management featuring an extremely robust reporting functionality from anywhere in the world with an internet connection.
The site boasts ~77,000 members and ~550 hosts registered since inception with a database of potential future hosts numbering ~4,700.
Models receive a higher than average payout on collected charges which is evidenced in the quality of talent.
All told, this is a turn-key passive and residual income opportunity that comes with an existing very profitable structure in spite of the focus over the past 18 months in optimizing and maximizing the front and back end features and functionality.
Historical Summary:The company was formed in June 2010 when the founder thought there was an opportunity to work with models from other media types in an online platform that allowed wider reach for the models. Initially the company was branded with a then trendy theme. The key differentiator is that since inception they have enforced a more discrete, no nudity public facing profile policy. It was rebranded in 2012 and then again in 2016 to better conform to be more consistent with terms of service and FOSTA where the brand has stayed fully compliant and consistent ever since. The site was launched using a third party white label hosting products which incorporated 25 years of feature and functionality development. The companies first product offering was social media marketing for hosts, but at the time lacked traffic. As traffic increased, the business model became a hybrid model between marketing and video chat platform. The company has built a strong following of hosts/models with 550 registered since inception.
Owner Qualifications:Ability and willingness to delegate, traditional business development to lost hosts / members / new host and member prospects. Interaction with hosts. All key positions are staffed with seasoned long-term employees.
Competition:This company was intentionally built as a boutique offering with a world class platform with features and functionality that models and members love regardless of the type device they choose to access the portal from.
Potential Growth:Technology is current/comprehensive and the platform is ready to scale by marketing to the companies list of prospective hosts numbering ~4,700 individuals. The platform can also be offered to third party operators as a white label platform. A banner advertising platform has been developed and is fully functional with potential advertisers already expressing interest. The technology for the studios concept is fully built out, tested and ready to explode. This could be implemented internally should the owner wish to rent performance space or externally with partners who manage their own businesses with their own hosts in their own locations. The company has nearly 80,000 registered, predominately male, affluent users and spenders between the age of 20 and 70 including email and payment information. This data can be leased and leveraged by any product or service provider where males with high levels of discretionary income are the target. The platform also has significant content (photos and video) produced by hosts that can be sold as licensed products. This significant repository of saleable content represents a significant future monetization potential. New NFT (non-fungible tokens) functionality can be added if desired. Lastly, the existing crypto payment capabilities could me marketed as a discreet payment method for those concerned about confidentiality. Business could be internationally marketed by addition of a multi-lingual language interface.
The company has been built partnering with a number of providers who have been refined and substituted as needed resulting in a very tight and stable solution now including AWS (Amazon Web Services) hosting. The full-time, three person technology team works remotely from another US state. Customer service and general administration is located in another US state from rented space. Payroll is outsourced. Member / host payments are automated and currently paid on a weekly basis after being reviewed as needed by staff.
Last Updated: Aug 6, 2021 / 12:38 PM
Financial Information Current As Of: Jul 4, 2021 / 3:04 PM