Automated Businesses: Understanding the Market
If you’re an entrepreneur, investor or closer, then you know staying ahead of the curve is essential to success. One way to do that is by understanding the current trends and the automation industry is no exception.
In this blog post we’ll take a look at the current opportunities, how the markets are growing and some of the unique benefits it offers people just like you.
Amazon is one of the largest markets out there. But it’s also past its peak. While it’s still profitable it’s also extremely competitive.
The income can also be incredibly volatile for your clients due to different e-commerce quarters and Amazon creating more restrictions on the platform.
Market Conclusion: I wouldn’t recommend selling Amazon unless a vendor has reached out to you specifically and paid for your consulting services.
Shopify is the golden platform for many e-commerce brands and store owners. Since you can quickly scale a store, it’s easy to generate revenue.
The other benefit is that you can have access to data with long term value that can be sold. Plus you don’t have to compete with competitors to get eyeballs on your store.
The downside is margins can be low due to the nature of dropshipping. Product costs from warehouses and manufacturers are typically high and generating customers can get really expensive, really quick.
Not to mention Facebook is placing more and more restrictions on ads due to Shopify store scams.
Market Conclusion: Shopify stores offer an amazing opportunity but are also volatile. Clients will definitely buy this service again if given the necessary collateral. It may be worth revisiting in the future.
This rideshare automation service is one of the few with big potential.
Uber automation doesn’t require any marketing or selling to acquire customers and provides quick predictable cash flow.
Another plus side is that this business model is recession proof due to the demand for food delivery services. And the more vehicles you have, the higher the profits can be scaled.
But it’s worth mentioning that it relies heavily on maintaining a network of quality drivers. There’s also the risk of the driver crashing or stealing the car.
For many companies there’s not enough proof of concept.
Market Conclusion: Clients would 100% like to invest into this model. We lose money everyday because we aren’t able to deliver this service. In order to successfully launch this program, a driver funnel must first be created which will be expensive and have a longer run rate.
Although this company fell from $4.8 billion in 2019 to $3.38 billion in 2020, it’s still one of the most popular platforms out there.
With Airbnb, you have a tangible asset that can be visited at any time. You also have access to a database of over 150 million users.
And when it comes to furniture, you can move it across multiple locations.
The problem is that you typically don’t own the space. So clients have to make sure they’re profiting enough cash to pay the agreement from the landlord. There’s also competition with other Airbnb’s and Hotels.
But the biggest problem? Profits will also vary based on the season. During the summer people are more likely to travel than in the winter.
Market Conclusion: This is another model clients would like to buy into. Many investors want real estate properties. If you can find a trustworthy Airbnb vendor and hire a consultant dedicated to searching for successful property managers, then it’s worth it.
Logistics is on the rise and it’s not stopping anytime soon. What makes this offer so appealing is that one truck can produce revenue in 72 hours from the point the investment is made.
It’s also recession proof. We will always need trucks to deliver goods. Fulfilling e-commerce and economic demand provides the long-term sustainability investors are looking for.
Oh and the best part? It doesn’t require full payment for long-term revenue and creates a tangible access that can be leveraged to scale profits.
The downside is that clients don’t own the assets. It also takes around 4 months to start hitting the 72-hour profit mark. You’ll also need more than one truck to scale profits.
Market Conclusion: Buyers in this market have more capital and are willing to wait longer periods of time for their return. Trucking offers high commissions and scalability due to the fact that we can always find more fleets. If you can find successful trucking companies that are open to scaling then go for it!
Digital monetization has been taken to another level with YouTube Automation.
This business model has the capacity to create long-term sustainable cash flow for buyers. It also doesn’t require additional credit or capital to run.
Everything is based off predictable profit formulas to get more subscribers and views on your videos. Plus, this traffic can be used to grow other businesses.
Of course it isn’t without its downsides…
YouTube Automation takes around 12-14 months for an ROI. After that? It’s a cash cow machine.
Another thing that might turn buyers away is that it’s not a tangible asset.
Market Conclusion: This opportunity is definitely worth selling or taking part in. If you can find investors who are willing to wait, then it’s a no-brainer offer for them.
Turo Automation is a concept that has passed the test again and again.
The proof of concept is there. The high cash flow is there. And the opportunity to get paid out quickly… is there.
This business model provides clients with the ownership of a tangible asset. With the right vendor, it also offers clients to improve and build business credit. With a transparent process on how to acquire the cars and profitability are laid out in front of the buyers eyes.
The only downside is that this takes more than $25,000 to get started and clients must have a 720 credit score.
But the opportunity to hold vehicle events and sponsorships creates an aroma of growth for a turo automation dealership.
Market Conclusion: Turo Automation is one the latest vendors added to ADC and for good reason. If you can find a vendor with a repubiltable track then this is definitely worth taking part in or even selling.
With all the automation services out there it’s hard to find the right one to buy or sell.
That’s why at ADC we do the work for you.
We’ve done all the heavy lifting so you can find which one is right for you.
Interested in selling for ADC or learning more about one of the automated businesses on our list?