In January 2017 I was approached by a guy called David Denton who wanted my input on a piece of software he had developed. David had previously owned an eCommerce store called Mode Designs but could not find a good PPC agency or freelancer to manage his account. When he asked me to build his account for him I explained that to build it properly would take me too much time and unless an account has a huge budget I stay away from eCommerce clients. Because of this, David built software that overcame this problem and that’s why he approached me for my thoughts once it was built. He tested the software on his Mode Designs website and achieved far greater results than any other agency had got for him in the past. This validated his idea. When I saw the software I was so impressed that I invested in it straight away.
The original plan was to sell use of the software to agencies and freelancers on a monthly subscription basis. Because we would need to invest heavily in advertising the software we started looking for outside investment. It was early in this process that I suggested to David that the software would be of much more value should we use it ourselves and sell specialist eCommerce PPC management services instead. As such the company has now pivoted and rather than being a technology company we are going to be an eCommerce PPC management company. With this software in place we should be able to grow pretty quickly. I will be managing the accounts to begin with but as soon as the company begins making enough money to support the employment of staff, I will train up staff to specialise in eCommerce management therefore allowing the company to grow much bigger and faster than it ever could should I just be managing the accounts myself.
In the long term the company would be a perfect acquisition for either a bigger digital agency or a company that specialises in eCommerce software. This week I went out for some drinks with a friend of mine who works for Google. He told me how an agency that he was the account manager for at Google has recently been bought out by the agency Epiphany. He said that the agency had created some Adwords management software that Epiphany wanted and that was why they were bought out.
It would be the perfect software for a bigger digital agency because builds can be done quickly, therefore using less staff hours to create accounts. Management is sped up because the software automatically adds or deletes new products in Adwords, again saving staff time. But more importantly, the software leads to better results which will ensure companies retain clients and find it much easier to win new eCommerce clients.
A company that already offers eCommerce software would have a bank of eCommerce customers that they can try to push the services to. It could become another big revenue stream for the business. There would be a lot of cross promotion – so eCommerce companies can be enticed with the PPC management services and the other software that the company offers can then be upsold to the client, and vice versa. By entering a new market an existing eCommerce software company could effectively double the size of their existing business.
A bit about the company and software: