All across the world, the realm of business aggregation is heating up. Larger corporations with investor backing are buying up smaller entities–it’s something that’s been going on for years. But what’s new is the idea of “digital demand aggregation.”
One startup that exemplifies this trend is called TreasureHunter–a firm that intends to use recently-secured investor funding to acquire, operate, and grow content websites. For many reasons, firms like this are grabbing online assets in an attempt to make a passive profit.
What Does Hunting for Treasure Look Like in 2022?
In 2022, hidden gems are less likely to be found underground or at the bottom of the sea. Instead, treasure is being found on the internet. The “gems” being discovered are content websites or blogs that generate hundreds of thousands of USD each year. Aggregators like TreasureHunter are hot on the search.
These teams are made up of SEO practitioners, marketing mavens, content writers, social media experts, website developers, salespeople, and advertising professionals. They’ve been assembled with a goal in mind: To acquire digital assets with worldwide audiences. By acquiring websites with small teams and majority profit margins, aggregating firms intend to standardize processes and grow sites’ audiences.
A Futuristic Treasure Hunt
The secret map begins with mining data, sourcing leads, and uncovering “hidden treasure” online. Aggregators use their M&A teams to assign a value to each discovered asset and work to close deals with asset owners. These deals often allow asset owners to join an aggregator’s team to grow the online gem. In other cases, these deals allow DIY entrepreneurs like bloggers to step away from new pursuits.
For TreasureHunter’s team, the most important part of the transaction is what they call “DNA conservation.” This crew stresses that their website acquisitions do not have goals to make major changes to the site’s content. Instead, the startup’s leaders say that they simply want to understand the content that makes the site great–and work to replicate that in a standardized process through a larger team (and budget).
“We know that when we step in, the blog has already gained an organic following and invested audience,” said Benjamin Schardt, TreasureHunter’s Co-Founder & Co-CEO. “We want to keep that established base and implement our team of professionals to scale up.”
Dedication to the site’s DNA is exemplified by TreasureHunter’s first digital asset acquisition. In June 2021, TreasureHunter bought a German travel blog, called reisefroh.com. Currently, the asset has experienced compounding revenue due to standardized processes around sales optimization, traffic simulation, and content management.
“In the future, we also hope to use our network and portfolio of sites to find comparable synergies that end in mutual growth,” concluded Schardt.
Generating Passive Income with Content Websites
All over the globe, individuals’ trust in mainstream media is decreasing. Instead, individuals have begun to seek information from trustworthy individuals and small teams in niche markets. When delivering truthful content, website owners make money from display advertisements and affiliate marketing by doing what they love (whether cooking, sports, travel, etc.) and by self-starting a piece of digital property to distribute such content.
Content websites use their informative blogs to generate traffic, cultivate an audience, and monetize information. When aggregators get involved, these firms inject standardized processes, a larger team, and bigger budgets.
“The need for high-converting traffic will increase over the next few years, as the ecommerce sector grows, and competition in ecommerce increases,” said Schardt. “We believe there is a bright future for digital demand aggregation.”
In 2022, 80% of ecommerce advertisers are thriving off affiliate partnerships with content websites. As ecommerce continues to grow, there will be a continual need to stimulate sales with content. What’s more, 40% of ecommerce merchants designate affiliate programs as their majority acquisition channel when tracking sales.
For TreasureHunter, the crew aims to acquire content websites in their current form. These blogs or “hidden gems” are profitable, but the asset might have begun as a side business or passion project. Many trustworthy site owners that deliver grade-A content lead a small team that’s reached operational limits.
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