Before Christmas, we ran a short webinar on how partnering with Candio and selling our white-label digital services can increase your business value.
In 2021 the Candio partners, on average, achieved the following:
· Increased Annual Revenue; £72,000
· Increased Annual Profit; £36,000
· Increased Business Value £250,000
Feel free to check out the webinar here – https://vimeo.com/652033822
Or continue reading the rest of this blog to find out more:
Our proposition is built on two building blocks. The first is that having an effective online presence is more important than ever. Our products address this head-on and help end-users manage and improve their online performance. Our product also has the right price point, offering tremendous value for money at less than £10 per month.
The second building block is the reseller proposition. When you recognise its value and importance, our products directly drive more recurring revenue.
In developing the proposition, we worked with the team at Knight Corporate Finance to understand how our services could drive your business value. Together we identified four key areas:
· Increased recurring revenue massively impacts valuations and strategic value.
· An impressive 50% GP drives straight to the EBIT line, as no additional resources are required.
· Recurring revenues generated through a new service like Candio drives organic growth performance.
· Digital transformation
We’ve undertaken an analysis of our partners and grouped them into three groups. We’ve then analysed the average performances achieved through Candio’s products within these groups. The three groups we created are based on customer base size:
We then asked Paul Billingham from Knight what his thoughts are on the current marketplace:
“In the current market, to generate interest from buyers, you generally must show at least 75% recurring revenues. Valuations are always higher for those businesses with higher levels of recurring revenues, and the COVID-19 crisis has reinforced that positing with buyers. All things being equal, the higher your level of recurring revenue, the higher your valuation.”
So, how? How have Candio partners increased their business value by £250 and added an additional 72K in recurring revenue without any other headcount? Let me explain.
Let me introduce to you one of the products Candio have created, called Website Optimiser, as you can tell from the name it optimises a customer’s website for best performance & does this by.
– Auto Indexing across multiple search engines improves findability
– Running reports based on keyword performance, backlink checks & competitor comparison.
– Real-time alerts notifying the customer should their website go down or have a security leak
– And they are finally running an audit across their site highlighting the areas they need to fix to improve SEO, Performance, Security & Usability.
In doing all that, we can create a pain point very quickly and highlight the issues found in your customer’s website & also their overall performance score.
We then take that information and turn it into a rebranded email, which each customer will receive highlighting their overall score, number of bugs in their website & then also a link for them to visit their dashboard.
And that’s what allows us to create this opportunity; we can run a tailored marketing campaign into your existing customers, providing them all with a free trial of Website Optimiser, and at the end of the trial, if they haven’t cancelled, Web Optimiser turns into a charge of £8.99 adding it to a bill you already provide them. Based on current partner success, we know that if you launched our service to 1,000 customers, 10% of those would drop out, allowing you to add £97,000 in revenue.
Then to go back to the workings we did with Knight, that means that you would be able to increase your business value by over £300K;
Even better, we can do that all within four weeks. So, we can have all this up and work for you before the end of Q1. It simply works like this; you provide us with a customer data file that allows us to create WO accounts & send them welcome emails. We then work with your marketing team to create an email that suits your brand & tone of voice. Then we’ll train your sales, retention, customer service team so they can tell customers the features & benefits of this service. Then once we’re both happy, launch. Easy as that.
Final Thoughts
If you have a customer base of over 1,000 customers, based on success with other companies in your industry, we can increase your business value by £300K. Whilst giving you customers a new product that will help them win the digital world.
What’s not to like?
If you’d like to learn more about becoming a Candio partner, click here to arrange a meeting with our BDM, Tom Chedham.