Prospectus

March 2021
Str ic t ly pr iv a t e & c o nf i de n ti a l

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 Contents
Overview
Executive Summary 1
Financial Overview 1
Traffic Statistics 1
Opportunities for Growth 2
Reasons for Sale 2
Market Trends 2

Website Dynamics
Traffic Overview 3
Traffic Sources 3

Financials
Overview and Income Statement (LTM) 4
Financial Analysis 4

Continuing Obligations
Website Maintenance 5
Package 5

Summary
Closing Summary 6
Next Steps 6

Questionnaire
General Queries 7
Growth Opportunities 9
Owner/Staff Responsibilities 10
Product Information 12
Internal Security Questions 14
Marketing 15
Income Statement 17
Subscription Metrics 18
Traffic and Site Performance 19

Disclaimer and Confidentiality

This document contains information that is considered confidential information to Heavyweight Ecommerce Apps Limited and FE
International, Inc. FE International, Inc. has authorization to distribute the document to potential buyers. By receiving this document, you
agree that any unauthorized duplication, distribution or use without express written consent of FE International, Inc. is strictly prohibited.

The information contained herein or in any attached documentation has been compiled from the information provided by the sell er to FE
International, Inc. under the terms of the Seller Representation Agreement. FE International, Inc. makes no warrantees expressed or implied
as to the accuracy of the information presented.

Although FE International, Inc. believes the data to be a fair representation of the business’ activities; its completeness or accuracy cannot
be guaranteed. As a potential buyer, you are solely responsible for performing your own due diligence to verify all of the information to your
satisfaction. The representative information as well as any verbal or written communication from FE International, Inc. should not constitute
legal, accounting or tax advice.

Additionally, by receiving this document, you agree to not contact any member of Heavyweight Ecommerce Apps Limited directly without
prior arrangement by FE International, Inc. and will direct all negotiations, offers of purchase, letters of intent or other communication through
FE International, Inc. who is the authorized agent of the Seller.
Performance Sale Overview
Overview Price: $3,490,000
Business Age: 4 Years
Website URL:
Sector: Sales & Conversion Optimization
Discounted Pricing Revenue Source: SaaS/Recurring Subscriptions
Discounted Upsells App Platform: Ruby on Rails, Postgres, Sidekiq, Redis, jQuery
Product Bundles
Website Features
Revenue Overview:
Post removal of reviews &
For sale is a portfolio of three B2B Shopify Apps in the sales and
$160,000
month-long App delisting conversion optimization niche with c.180K lifetime installations
across the portfolio.
$140,000
Launched in 2017, the portfolio of aged Shopify Apps delivers a
variety of tools to help Shopify merchants increase storefront
$120,000
conversion rates and increase average revenue per customer.
The three Apps allow merchants to generate upsell/cross-sell
$100,000
opportunities, offer volume discounts, and provide product
bundles to increase average order value. The Apps have
$80,000
outstanding functionality and are extremely easy to install by end-
users without the need for any coding or a developer.
$60,000

Product Bundles including upselling and cross-selling along with

$40,000 offering volume discounts are proven methods to increase sales
and average revenue per order for e-commerce stores. The
$20,000 portfolio of Apps quickly gained traction amongst the growing
c.1.7M merchants on Shopify partly thanks to its in-demand
$0 feature set.
Apr-20

Oct-20
Nov-20
Dec-20
Aug-20
Sep-20
May-20
Jun-20

Jan-21
Mar-20

Jul-20

Feb-21

The installation rate for the portfolio grew at a CQGR of c.3% from
Q3’17 – Q3’20 before the Apps were temporarily delisted between
Gross Revenue Average
July and August 2020 owing to an alleged violation of Shopify’s
review policy (see p.8, Q.14). Despite this, the portfolio still saw a
Business Metrics (LTM): combined c.48.5K installs over the LTM and retained c.2.2K user
reviews on Shopify. The portfolio now has an average rating of
MRR: c.$99,500
over 4-stars across the three Apps and a user base of over c.5.2K
LTV: c.$85 active paying Shopify merchants.
Net Margins: c.91% The robust capabilities of the software coupled with the growing
Source: Company data retrieved March 1, 2021.
Shopify ecosystem helped grow revenues at a CAGR of c.58.8%
between 2018 – 2020 across the three Apps. With a steady LTV
Website Design: of c.$85 in the LTM and high adjusted net margins of 91%, a
new owner will have plenty of resources to invest into one of the
numerous growth opportunities available to restore the business
to levels prior to the delisting of the Apps by Shopify between July
and August 2020.

The portfolio presents an opportunity for a new owner to take over

three established Shopify Apps primed for restoration and growth.

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 Opportunities for Growth
Pricing – a new owner could experiment with
pricing to better monetize existing and future
users. All three Apps currently charge a monthly
subscription. Adding a discounted annual plan, a
feature relatively new to Shopify could help lock in
customers for the longer-term and boost short-
term cashflows.
New Features – with minimal updates being made
to any of the Apps in the portfolio over the LTM,
implementing new features could help improve the
overall appeal and increase user engagement.
Including features regularly requested by
customers in the various Apps could improve the
overall functionality, increase customer signups,
and reduce churn.
Cross-Selling – Currently only c.5% of the
portfolios' active users use more than one of the
Apps. The Apps are directly related to one another
but decoupled as three separate product offerings.
A new owner could look to undertake cross-
promotion between the three Apps to maximize
individual App exposure and provide more
opportunities for current App users to purchase
another App within the portfolio based on their
pricing and promotional needs.
Reason for Sale
The owner has operated the portfolio for over three
years in parallel with other projects and larger
Shopify Apps. After the temporary delisting of its
Market Trends
Trends: Searches for the term ‘Cross-Selling’
have remained steady for the last five years. As
Shopify continues to grow in popularity, Shopify
merchants are readily turning to Apps to
differentiate their stores and drive sales. Demand
for Shopify Apps has similarly increased with 87%
Source: Google Trends for the term “Cross-Selling” retrieved March 1, 2021
Review Strategy – As a result of the alleged
Shopify review policy violation, Shopify removed
half of the four and five-star reviews from all Apps.
To regain the strong review profile and position on
the Shopify App store, a new owner could look to
improve the portfolio’s review process by making
sustainable changes to the existing strategy. By
restoring the ratings to the levels prior to delisting,
the overall ranking of the Apps would improve and
help attract and grow the user base.
New Website – a new owner could develop a
standalone website dedicated to the Apps. A
website would allow the owner to regularly publish
educational content, guest posts, and instructional
videos to increase organic traffic and enhance
brand exposure. With a vast email database of
c.139.6K users, a new owner could also regularly
promote new content/case studies to raise
engagement and conversion.
Partnerships – reaching out to popular e-
commerce bloggers, Shopify experts, and
development agencies to feature the portfolio as a
preferred partner could provide direct access to a
highly relevant target market, build brand
awareness, and sign up new users.
account between July – August 2020, the owners
switched their focus to the other larger Apps within
their portfolio and will continue to do so.
of merchants using the Shopify App Store and the
merchants on average have six apps installed.
With a portfolio of three Apps primarily focused on
the sales conversion through upsells/cross-sells
and volume discounts, the portfolio should
continue to see success under new leadership.
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 Usage Statistics
The three Apps have attracted a significant user Shopify) the portfolio has a combined 48.5K
base since their inception in 2017 and currently installations over the LTM and the Apps have
have over 5.2k active paying merchants as of secured a strong foothold in a highly lucrative
February 2021. space.

App installations are well diversified across the With the portfolio averaging over a 4-star rating on
portfolio with Discounted Upsells driving c.42% of Shopify, a new owner can improve the Apps review
downloads over the LTM (over 20K downloads), process by making Shopify compliant changes to
Discounted Pricing accounting for c.40% of the existing review strategy. This would help
downloads over the LTM (over 19.7K downloads), improve rankings in the Shopify App store and
and Product bundles accounting for c.18% drive growth Developing partnerships (with
downloads over the LTM (over 8.7K downloads) Shopify experts or popular e-commerce bloggers)
With the total number of installations rising at a could be a great opportunity to continue scaling the
CQGR of c.3 % from Q3’17 – Q3’20 (before the business.
impact of the App delisting and review removal by

Cumulative Installations (LTM)

60,000

50,000

40,000

30,000

20,000

10,000

0
Apr-20

Aug-20

Sep-20

Oct-20

Nov-20

Dec-20
Jun-20

Jan-21
May-20
Mar-20

Jul-20

Feb-21
Cumulative Installs Linear (Cumulative Installs)

Active Paying Merchants (LTM)

9,000

7,500

6,000

4,500

3,000

1,500

0
Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21

Active Merchants

Source: Shopify data, retrieved March 01, 2021

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 Financial Information
Revenue Streams: SaaS/Recurring subscription. and $44.99/mo. for the Unlimited plan. Discounted
Pricing App also offers a Shopify Plus plan for
Observations: The portfolio has scaled at a rapid
$89.99/mo. Product Bundle is monetized via a
pace since its inception in 2017. Revenue grew at
freemium model, with users accessing the App for
a CAGR of c.58.8% between 2018 – 2020, with
free until a sale is made. Paid plans are priced at
the business currently generating c.$100K in
$19.99/mo. for the basic plan, $29.99/mo. for the
MRR. Discounted Upsells is the highest revenue-
professional plan, and $44.99/mo. for the unlimited
generating App, driving c.43% of the total revenue
plan.
over the LTM, followed by Discounted Pricing at
c.42% and Product Bundles at c.14%. With low operating expenses needed to run the
portfolio and with minimum owner involvement the
Both Discounted Upsells and Discounted Pricing
portfolio has achieved a high adjusted net margin
Apps offer a seven-day free trial period before
of c.91% throughout the LTM, offering plenty of
converting to a paid subscription. Paid plans for
resources for a new owner to invest in growth.
these two Apps are priced at $19.99/mo. for the
Basic plan, $29.99/mo. for the Professional plan, Note: the numbers are prepared on a SDE basis.

Income Statement (SDE)

Note: Financials are prepared on an accrual basis. Software costs are estimated as these included expenses for other Booster Apps not related to the sale. Expenses for software are estimated
based on the market rates for each individual software, admin staff cost is estimated for two employees working for total c.10.5 hours per month at the rate of $4 per hour, and developer cost is
estimated at c.40 hours per month at the rate of $60 per hour.

YoY Revenue Growth… …With Rising LTV

$100
$1,600,000
$1,400,000
$80
$1,200,000
$1,000,000 $60
$800,000
$40
$600,000
$400,000
$20
$200,000
$0 $0
2018

2019

2020

Apr-20

Aug-20

Sep-20

Oct-20

Nov-20

Dec-20
May-20

Jun-20

Jan-21
Mar-20

Jul-20

Feb-21

Actual CLV Linear (CLV)

Source: Company data retrieved March 01, 2021.

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 Website Maintenance
Owner Responsibilities Hours Per Month
Advertising and marketing c.1-2 hours per month
Administration, research, and generating reports c.5 hours per month
Comments The owner spends c.5-6 hours per month on the business. All
SOPs and day-to-day activities are extensively documented, with
much of the work outsourced to freelancers.

Customer support (3) Hours Per Month

Customer support c.160 hours per month
Customer support team lead c. 10 hours per month
Comments The two customer support staff works c.160 hours per month each
on the business. The team lead works c.10 hours per month on
the business. The two customer support staff are paid a rate of
c.$5/hour each and the team lead is paid a rate of c.$13/hour for
their time on the business and will not be available post-sale.

Developer (2) Hours Per Month

Product development c.5 hours per month
Bug fixes and improvement c.15 hours per month
Comments The two developers work c.5 hours per month and c.15 hours per
month on the business. They are paid a rate of c.$56/hour and
c.$16/hour, respectively for their time on the business and will not
be available post-sale.

Administration (2) Hours Per Month

General Administration work c.4 hours per month
Preparing and Updating documents c.6-8 hours per month
Comments The two Admin staff work c.4 hours per month and c.6-8 hours per
month on the business. They are paid a rate of c.$4/hour each for
their time on the business and will not be available post-sale

Package
Applications Hosting
Booster: Discounted Upsells Amazon Web Services (AWS)
Booster: Discounted Pricing Heroku
Booster: Product Bundles
Platform
Accounts
Ruby on Rails
Mailing list (139,608 subscribers)
Shopify (Discounted Upsells) Training
Shopify (Discounted Pricing) 1 month of training.
Shopify (Product Bundles) This should give plenty of time to train a new owner in daily
operations, customer support, and growth initiatives.

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 Closing Summary
For sale is a portfolio of three B2B Shopify Apps in
the sales and conversion optimization niche.
Launched in 2017, the portfolio of aged Shopify
Apps delivers a variety of tools to help Shopify
merchants increase storefront conversion rates
and increase average revenue per customer. The
three Apps allow merchants to generate
upsell/cross-sell opportunities, offer volume
discounts, and provide product bundles to
increase average order value. The Apps have
outstanding functionality and are extremely easy to
install by end-users without the need for any
coding or a developer.
The robust capabilities of the software coupled
with the growing Shopify ecosystem helped grow
revenues at a CAGR of c.58.8% between 2018 –
2020 across the three Apps. With a steady LTV of
c.$85 in the LTM and adjusted net margins of
91%, a new owner will have resources to invest
into one of the growth opportunities available to
restore the business to levels prior to the delisting.
- Develop new features
- Restructure the App review strategy
- Advertise on multiple channels
- Develop a standalone website
- Build new partnerships
Product Bundles including upselling and cross-
selling along with offering volume discounts are
proven methods to increase sales and average
revenue per order for e-commerce stores. The
portfolio of Apps quickly gained traction amongst
the growing c.1.7M merchants on Shopify partly
thanks to its in-demand feature set.
The portfolio presents an opportunity for a new
owner to take over three established Shopify Apps
primed for restoration and growth.
Please continue to the Questionnaire for a
detailed interview with the seller on the
business, packages and areas for growth.

Some of these growth opportunities include:

- Experiment with pricing

Next Steps
Contact Your Dedicated Advisor:

Kevin He Kevin is a Senior Associate in the Mergers and

Acquisitions team at FE International. Kevin brings
kevin.he@feinternational.com
over a decade of experience in Investment Banking
and management consulting to FE International’s Schedule a call
top ranked SaaS M&A team. With a passion for
+1 800 403 9067 x113
entrepreneurship, Kevin has served as CFO for
numerous technology startups.

Rei Kalemi Rei is a Senior Analyst in the Mergers and

Acquisitions team at FE International. Having rei.kalemi@feinternational.com
worked previously as an Analyst at a technology
boutique Investment Bank and with experience in Schedule a call
Corporate Finance, Rei brings a wealth of +1 800 403 9067 x129
experience to FE International’s top-ranked SaaS
M&A team.

6
 FE International
FE International is an award-winning global M&A
advisor of SaaS, e-commerce and content
businesses. It has completed acquisitions for
thousands of founders, owners and acquirers, and
is the preeminent valuation thought leader in the
industry.
Founded in 2010, FE is known for its extensive
network of pre-qualified international investors.
With headquarters in New York and regional
offices in Miami, San Francisco and London, FE is
an international company serving clients
worldwide.
It was named the 8th fastest-growing financial
services company in the Americas (133rd overall)
by the Financial Times in 2020 and is a two-time
Inc. 5000 company.
Over the past decade, FE International has achieved industry-wide recognition, winning multiple awards from
accredited sources and advising on several notable acquisitions.
Acquired by Acquired by Acquired by
The FE International team includes experts in exit
planning, valuation, accounting, legal and more. It
complements this formal experience with unique
and innovative approaches to valuation, deal
marketing and structuring.
Additionally, it prides itself on exceptional quality
of service and the ability to consistently deliver
safe, secure, and successful deal making for
entrepreneurs and investors alike.
FE has served over 1,000 clients and businesses
in SaaS, content and e-commerce acquisitions
and boasts a 94.1% success rate. With an investor
network of over 60,000 high net worth individuals,
private equity firms, funds and strategics, FE
International continues to lead the way in mid-
market online and technology business sales.
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Acquired by Acquired by Acquired by
7
 Questionnaire

General Queries

1. What is your full name and location?

Stuart Chaney – Las Vegas, NV, USA.

2. What is the name, address, and entity type (i.e. LLP, Ltd., sole proprietorship) of the business?
Heavyweight Ecommerce Apps Ltd. – d.b.a.: Booster App, Ireland Ltd.

3. Please confirm this is an asset sale?

Yes.

4. Can you please provide your background?

I have been in the SaaS business since 2008, mainly on the engineering side of projects. I am a co-founder of
a company that sold to Rackspace in 2013. Since 2015, growing Booster Apps has been my 100% focus.

5. Are you the original founder?

Yes.

6. When did you launch the business?

July 20, 2015.

7. Who are the owners and what percent does each own?
• Stuart Chaney: 100%.

8. Do you have the full authority to conduct a sale of these assets?

Yes.

9. How much did you invest in start-up costs?

• Sweat Equity: 30 hours a week for a period of two years.

10. How much do you invest annually on new product(s)/updates?

• Support Costs: c.$22,800, c.3,960 hours a year. Two subcontractors each working c.40 hours a week
and one customer support lead working for c.10 hours a month.
• Development: c.$28,800, 40 hours a month, $60 per hour.
• Advertising: c.$35,000, All of this was spent on Shopify App listing Ads which has tapered down to
less than $1,000 per month in February 2021.

11. Please list all the URLs that will be included in the sale.
• https://apps.shopify.com/discounted-upsells
• https://apps.shopify.com/discounted-pricing
• https://apps.shopify.com/upsell-bundles-1
• https://apps.shopify.com/frequently-bought-hero (can be included in the sale)

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 Questionnaire (Cont’d)
12. What does the business do?
Booster Apps provides Shopify merchants with a wide range of Apps that help boost traffic, customer
engagement, retention, and bottom-line sales. The three Apps included in the sales portfolio are focused on the
customer engagement segment to use product upsells, bundles, and discounted pricing to increase conversions
and the average revenue per customer.

13. What is unique about your business/product(s)?

These three Apps are directly related but decoupled as three separate Apps to maximize App store exposure
and provide more opportunities to cross-sell Apps’ users to purchase multiple Apps based on their pricing and
promotional needs. The architecture is built in a way that it could be reengineered as one bigger platform with
pricing tiers based on features, usage, results, or kept as three independent Apps that share the same codebase
and database.

14. Who are your top 3 competitors?

• Pixel Unions – Ultimate Special Offers App: The App has a lot of similar features when compared to
the portfolio but instead of being packaged as three separate Apps, all features are accessible through
a single App. Their pricing is based on usage (number of orders through offers), plans starting at $9 per
month for the first 10 orders and capped at $499 per month based on the usage for 1,000 plus orders.
Our three Apps can be combined and priced on a similar usage-based plan and would be more price
effective when compared to competitors.
• Bold Apps: They offer three separate Apps – ‘Bold Quantity Breaks’ offering similar features and
pricing like Discounted Pricing App, ‘Bold Bundles – product Bundles’ offering similar features like
Product Bundles. Their pricing is slightly different as the premium plan is tiered based on features, and
‘Bold Upsells – True Upsells ‘offering similar features like Discounted Upsells but their pricing is also
based on the usage of the features.
• Zoorix: The App has a lot of similar features combined in a single App when compared to three separate
Apps. Offers a freemium plan of up to 50 orders per month. Paid plan starts at $7.99 per month and
increases based on usage up to $99 per month for 20,000 orders and an additional $0.02 for each order
over 20,000 orders.

15. Why are you selling the business?

In July 2020, Shopify, in the process of centralizing its review policy imposed a penalty by delisting our entire
account for one month (July 27, 2020 to August 27, 2020) for violating its review policy. The infractions were
mainly on our free Apps where we requested calls to action such as “support free Apps on Shopify” or “Like our
Free App”. Even though not all our Apps, i.e., our paid ones, used this language, they penalized our entire
account by delisting all our Apps for one month. Prior to July 2020, we used two main methods for reviews, both
of which have been completely stopped since August 2020.

• In-App: All our apps vary a little bit, but in most cases, the user has displayed a review request after
completing a key step. In the case of the portfolio, that would be creating their first offer.
• Post positive support review experience: If a user needed support and got their issue solved and
seemed to have had a good experience, then the support staff would ask for a review on the App store.

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 Questionnaire (Cont’d)
During the one-month delisting period, we immediately pulled off our entire review strategy for all our Apps and
stopped asking for reviews. Shopify approved the changes and relisted the Apps, however, they removed half
of our 4-star and 5-star reviews from its platform.

For the three Apps on sale, we are investing most of our time and energy into a new suite of Apps that are
disconnected from the Apps for sale. As a result, we have not given them much attention over the past seven
months, we did not bring back review prompts via the App or support interaction for them. Hence, we have not
received many reviews for these Apps since the delisting in July 2020. Due to the Apps delisting and shift of our
focus on other Apps, the MRR for the portfolio has declined since July 2020. A new owner can leverage the
portfolio by rebuilding the Apps review strategy, providing good customer support, and experimenting with the
existing pricing strategy. Instead of pulling resources away from the new projects to grow these Apps, we have
decided to put them up for sale.

16. Is the business illegal, banned, or restricted in the United States, United Kingdom, Canada, or Australia?
No.

17. Have you ever had any legal issues with the business?
No.

18. Do you own any other businesses in this, or a related, niche?

No.

19. Please confirm you are willing to provide a minimum of 5 hours of training per week for 30 days.
Yes.

20. Please confirm you are willing to sign a non-compete specific to the niche that this business operates
in.
Yes.

Growth Opportunities

1. Please provide the major product/financial milestones.

i. July 2015: Booster Apps launched its first App.
ii. June 2018: Portfolio Apps MRR passed $50,000.
iii. February 2021: Portfolio Apps MRR is c.$99,541.

2. What strategies have proven most successful in growing the business to this point?
• Free trial: Offering a free tier or trial to get users to try the App before they buy it.
• Good onboarding process: Have good onboarding (in-App and email) to get new users to properly
set up an offer and generate their first sale as a result.
• Cross-Selling: Set up cross-selling opportunities to promote other related Apps to your install-base.

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 Questionnaire (Cont’d)
3. What strategies have you tried that did not prove successful?
• Marketing and advertising: Marketing and advertising outside of the Shopify App store ecosystem.
For example, retargeting Ads on Facebook or Instagram. This strategy has proven effective for many
Shopify Apps but has not been as effective for us because we have not put an experienced person in
charge of owning and optimizing it. There is an opportunity here that someone could easily capitalize
on.

4. If you were not selling, how would you grow the business over the next 5 years?
• Pricing: Experiment with different pricing tiers to align pricing with results. For example, a limited
freemium plan based on low usage leading to a paid tier based on results such as the number of upsells
conversions.
• Promotions: Do more cross-selling and promotion between the Apps.
• Referral program: Implement a partner/referral program.
• Digital marketing: Hire or contract with someone to experiment with digital marketing (influencer
marketing, retargeting display Ads, YouTube Ads, etc.).
• New features: We have not made many updates to these Apps in the past year. There is a backlog of
requests and ideas that could be implemented in addition to trend and demand research to expand the
ways products could be bundled and priced. A few examples are listed in the section below.

5. Are there any new products/services you would add to the existing product in the next 12 months?
• Exit Upsell feature: Add an exit-intent upsell feature.
• New discount codes: Enable Buy X get Y additional discount codes. For example, buy a shirt and get
a free face mask.
• Limit number of offers: Give customers the ability to limit the bundle or upsell offers to only show once
per person.
• Change product offers trigger: Provide more discount options for our Discounted Upsells App, like
our Discounted Pricing App where instead of the trigger being a product, it can also be an amount spent.
For example, spend $50 to upsell this product.

Owner/Staff Responsibilities

1. What tasks do you and your team perform and how long does each take?
Technical Tasks

• Product development: Five hours per month, Support adds requests from tickets.
• Bug fixes and improvements:15 hours per month, Developer that works on other Apps but maintains
these three Apps when needed.

Sales, Marketing, and Customer Service Tasks

• Customer support: 160 hours per month each, Two contract support team members.

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 Questionnaire (Cont’d)
• Customer support team lead: 10 hours per month, one team lead overlooking the tasks of the support
staff.
• Advertising and marketing: One to two hours per month, Owner & Head of Operations.

Administrative Tasks

• Accounting: Five hours per month, Outsourced.

• Administration and special projects: Five hours per month, Administrative Assistant.

2. How many customer support tickets does your business receive weekly? How long does each take to
fully resolve?
40-60 tickets a week between the three Apps with an average resolution time of 9 hours and 36 minutes in
January 2021.

3. What skills will the new owner need in order to be successful?

• Ruby on Rails: For App maintenance and improvements.
• Shopify App experience: Not necessarily required, but recommended and beneficial to understand
the ecosystem.
• Marketing: These Apps have not been marketed heavily and still have grown well c.$99,500 MRR.
Adding well-executed marketing to the mix would go a long way.
• Manage customer support: Hire and manage a small team of customer support contractors.

4. Did/do you outsource tasks to contractors or freelancers?

Yes.

5. Which of the above tasks do you do and how long does each take?
• Customer support: Handle support tickets in HelpScout, report any bugs or improvements in Asana.
• Development: Fix bugs, add new features, and database maintenance/stability.
• Admin work: Do research, generate reports, etc.

6. Please describe the role of your contractor(s)/freelancer(s). Please indicate the hours worked and
associated cost.
• Developer: Code maintenance, five hours per month, $56 per hour.
• Developer: Bug fixes/improvements, 15 hours per month, $16 per hour.
• Customer support: Support tickets and troubleshooting, 160 hours per month, $5 per hour.
• Customer support: Support tickets and troubleshooting, 160 hours per month, $5 per hour.
• Customer support team lead: Manages the two customer support staff, 10 hours per month, $13 per
hour.
• Administrative assistant: Administrative duties, internal processes and procedures documentation,
research, assist in tagging tickets, five hours per month, $5 per hour.

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 Questionnaire (Cont’d)
7. How long has each contractor/freelancer been with the company and are they still present?
• Developer (Product development): 3 years 1 month, Yes.
• Developer (Bug fixes and improvements): 2 years 11 months, Yes.
• Customer support: 1 year 9 months, Yes.
• Customer support: 1 year 10 months, Yes.
• Customer support team lead: 3 years 1 month, Yes.
• Administrative assistant: 1 year 10 months, Yes.

8. Do you have any part-time or full-time employees?

No.

9. Will all freelancers, contractors, and employees stay with the business once the new owner takes
possession?
No. Right now these three Apps are on autopilot/maintenance mode until we either sell or reprioritize them. The
handful of employees/contractors that are involved with discount App-related tasks are used in other aspects of
the business for other Apps/projects. i.e., a developer may spend an hour fixing a bug, but he is primarily focused
on other projects. There are two support team members that primarily handle all related tickets, but they also
handle other tickets. We are open to discussing the inclusion of one of these support contractors in the sale or
can guide how to hire for these roles in the Philippines.

Product Information

1. Please list all products and/or services (including different plans) and their associated price(s).
• Booster Discounted Upsells: Seven-day free trial, $19.99 per month for basic Shopify plan, $29.99
per month for professional Shopify plan, and $44.99 per month for unlimited Shopify plan.
• Booster: Discounted Pricing: Seven-day free trial, $19.99 per month for basic Shopify plan, $29.99
per month for professional Shopify plan, $44.99 per month for unlimited Shopify plan, and $89.99 per
month for Shopify plus plan.
• Booster: Product Bundles: Free until a sale is made, $19.99 per month for basic Shopify plan, $29.99
per month for professional Shopify plan, $44.99 per month for unlimited Shopify plan.

2. What discounts do you currently offer?

Occasionally 20% off the subscription plan price. We do have a free plan flag if ever needed, this is given when
a customer is wanting to have a full experience of the Apps or when a fixing/improvement is needed in the App
to make it compatible for the user and the user might unsubscribe the App. The free plan flag is used only for
one or two users per month and the 20% discount off the subscription plan price is also not used frequently.

3. Did/do you run any promotions?

No.

4. Who is the product geared towards?

Individuals within companies/small teams (B2B).

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 Questionnaire (Cont’d)
5. Please describe your target customer.
SMB Shopify Merchants.

6. Do you have any notable companies and/or individuals using the product(s)/service? If so, which ones?
We have never dug through the large list of customers to identify bigger or notable brands.

7. Who initially developed the core product(s)?

• The founder (Stuart).
• One of our lead engineers, who still works with us (Serghei).

8. What technology stack is this product(s) built on?

Backend:

• Ruby on Rails 6.
• Postgres.
• Sidekiq.
• Redis.

Frontend:

• Rails ERb views / JQuery.

• Plug and play stylesheet using Uptown CSS to match Shopify's style.

9. Is there an associated iOS or Android App?

No.

10. Is the codebase documented and commented?

Fully documented and commented.

11. How automated is the sales and onboarding process?

It is completely automated with in-App onboarding setup guides that walk the user through the configuration.
Drip emails are used to nudge them along if they abandoned the setup. Also, product documentation exists to
help answer frequently asked questions.

12. When was the latest iteration of the product(s) and what did the iteration involve?
• January 2021: Small performance improvement.
• August 2020: Huge migration to Rails 6.

13. How often does the product(s) need updating?

The product will only need updating if Shopify deprecates the API version we use. (Could be once per year).

14. How often do you release new features?

We have not released new features in a year or so. The Apps are in autopilot mode.

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 Questionnaire (Cont’d)
15. When was the last time you released a new feature?
Timeseries metrics on a per shop and per offer basis (this feature is flagged for certain shops).

16. Who currently updates and maintains the codebase?

We have two developers that work on other projects but will jump in as needed to work on bugs/improvements
for the three Apps.

17. Would they be willing to stay on for a standardized hourly rate after a sale of the business?
No, given they work for my main business.

18. Do you sell globally?

Yes.

19. Are there any differences in the product(s) between different regions?
No.

20. Do you own any patents/trademarks/copyrights for any of your products?

No.

21. Is there an API?

No.

22. Does the product(s) integrate with any third party tools/services?
No.

Internal Security Questions

1. What security features do you have in place?

Third party PCI-compliant payment processor.

2. Has the business ever been breached or hacked?

No.

3. How often do you have technical issues/bug fixes?

Maybe one or two a month at most that take a few hours to fix.

4. What was the most recent technical issue/bug fix and when did it occur?
Our migration to Rails 6 required about 20 mins downtime.

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 Questionnaire (Cont’d)
Marketing

1. What are the most important marketing strategies for your business?
• Email marketing.
• Shopify App store Ads.
• Very minimal marketing has been done with these Apps.

2. How much do you spend on marketing per month, on average?

• Shopify App store Ads: c.$3,000 per month average in 2020. Currently, at less than c.$1,000 per
month in 2021.

3. Do you (or have you ever) run, pay-per-click (PPC)?

Yes.

4. Where do you advertise?

https://apps.shopify.com/

5. Can all advertising accounts be transferred to a new owner?

Yes.

6. Do you have any social media accounts associated with the business?
No.

7. Have you ever purchased or rented social media likes, follows, or other engagements?
No.

8. Do you keep customer records?

Yes.

9. How many customer records do you have and what information do you store?
Between the three Apps, we have c.127,597 Shops in our database as of March 2021.

10. Are any of your customers in the EU?

Yes.

11. What steps have you taken for GDPR?

https://boosterapps.com/privacy

12. Will all customer records be included in the sale?

Yes.

13. Do you have a mailing list?

Yes.

14. How big is your mailing list?

c.139,608 combined subscribers for the three Apps.

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 Questionnaire (Cont’d)
15. What is your email open rate?
Varies from 15% on the low end to 44% on the high end.

16. What is your email click-through rate?

Large variance from 1-2% for some emails up to 28% for certain onboarding drip emails.

17. Is the list single-opt in or double-opt in?

Single-opt in.

18. What mailing list provider do you use?

Intercom.

19. Do you have any email sequences in place?

Yes.

20. Please describe the email sequences below:

Example onboarding drip: Welcome > Create your first offer > Create off nudge (if the last step not complete) >
Create multiple offers (if only one created) > Additional help guides/documentation.

21. Do you use an autoresponder?

Yes.

22. Please describe the autoresponder below:

Autoresponder for inbound support tickets to let users know their request has been received and we will be
back in touch shortly.

23. Do you offer an affiliate program?

No.

24. Do you offer a free trial?

Yes.

25. How many trial signups do you get per month?

c.4,000 per month average in 2020.

26. How many paying customer cancellations do you get per month?
An average of c.1,761 per month over the last 12 months.

27. What are the most common reasons for customers cancelling?
Store closed.

28. Do you actively track conversions?

No.

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 Questionnaire (Cont’d)
Income Statement

1. Do you do accounting on a cash flow or accrual basis?

The financials are prepared on an accrual basis.

2. Does the business operate 100% in USD?

Yes.

3. What currencies does your business operate in?

• USD:100%.

4. How do you handle foreign exchange movements?

Most business is done in USD (revenue and expenses). Since we are based in Ireland, we convert the books
to euros based on current exchange rates before annual filings.

5. What payment processor(s) does the business use?

• Shopify billing API: 100%.

6. Are all payment processor accounts fully transferable to a new owner located in the United States?
Yes.

7. What are the most common reasons for refunds?

The trial ended and they got charged. Or they forgot to cancel and did not realize they were getting charged.
We do not have to refund in these cases but in most cases, we will.

8. Is this a recurring or one-time payment product?

Recurring subscription.

9. Can all existing subscriptions be transferred to a new owner?

Yes.

10. How do your clients pay?

Monthly.

11. Do you offer an enterprise package?

No.

12. Where is the site and/or service hosted?

• Amazon AWS, US
• Heroku.

13. How much do you pay for hosting per month on average?
• Amazon AWS: c.$780 for the three Apps.
• Heroku: c.$2,100 average for the three Apps.

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 Questionnaire (Cont’d)
14. Are you using any credits for your hosting?
No.

15. What software subscriptions do you have?

Software costs below are estimated based on just having a team of two to three employees needing their
accounts for these Apps. We already have these costs for our other business so they would be incurred either
way. We would be able to migrate/set up anything needed and used for the three Apps wherever possible.

• Gender API: $9 per month.

• Github: $8 per month.
• Grammarly: $25 per month.
• Zapier: $20 per month.
• Asana: $42 per month.
• Browser Stack: $ 29 per month.
• Bugsnag: $29 per month.
• Cloud App: $16 per month.
• Gsuite: $28 per month.
• Help Scout: $70 per month.
• Intercom: $999 per month.
• Scout APM: $129 per month.
• Slack: $16 per month.
• Wistia: $79 per month.
• Sidekiq: $79 per month.
• NordVPN: $18 per month.
• Aiven: $528 per month.
• Mailgun: $35 per month.

16. Are you using any credits for your software subscriptions?
No.

Subscription Metrics

1. Do you use a SaaS analytics tool?

Yes.

2. How many customers do you have?

• Discounted Upsells: c.2,274 active paying merchants.
• Discounted Pricing: c.2,220 active paying merchants.
• Product Bundles: c.717 active paying merchants.

3. What is your most recent monthly recurring revenue (MRR) in USD?

c.$99,541 as of February 2021 net of Shopify fees.

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 Questionnaire (Cont’d)
4. What is your monthly customer churn rate?
• Discounted Upsells: c.22.6%.
• Discounted Pricing: c.27.4%.
• Product Bundles: c.21.6%.

5. What is your monthly MRR churn rate?

• Discounted Upsells: c.22.6%.
• Discounted Pricing: c.27.5%.
• Product Bundles: c.21.8%.

6. What is your Average Revenue Per Account (ARPA)?

• Discounted Upsells: c.$19.3.
• Discounted Pricing: c.$18.3.
• Product Bundles: c.$19.9.

7. What is your Customer Lifetime Value (CLV)?

• Discounted Upsells: c.$89.
• Discounted Pricing: c.$70.
• Product Bundles: c.$97.

8. What is your customer acquisition cost?

c.$1 per install. The only paid advertising spend we do is through Shopify App store Ads.

Traffic Performance

1. Do you have Google Analytics installed?

Yes.

2. How has traffic evolved since start and what is the main source?
The bulk of all traffic is from the App store searches and App store PPC Ads (90+%). We do not do any marketing
outside of this. The traffic has evolved over the years as our Apps reach has grown mainly through organic
search within the Shopify App Store.

3. Do you have any backlinks from authoritative websites?

Yes, however, these are for the Boosterapps.com site which is for our App wider portfolio. On 23 January 2021,
the Discounted Pricing App was trending on Shopify App store page.

4. Have you ever purchased or rented backlinks?

No.

5. Do you run a Private Blog Network (PBN)?

No.

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 Questionnaire (Cont’d)
6. Do you have Google Search Console installed?
Yes.

7. Have you ever received a manual warning from Google?

No.

8. Have you ever received a manual penalty from Google?

No.

9. Does traffic follow any seasonal patterns?

Yes. Big bumps around holidays, especially Black Friday, Cyber Monday, and Christmas. Higher churn in
January as people do App clean-up from the holiday season.

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