Yes it is true, after 11 years in
business, AtomicMods.com is up for sale. This has been a fun business but it is
time for someone else to take up the torch. This could be the ideal business
for someone who wants to work from home such as stay at home moms, or even
dads. It could also be an ideal first business for a young entrepreneur looking
to make his mark in the world. It is a great business, with a lot of room for
growth, so I’ll get right down to brass tacks and will try to anticipate your
Why would someone want to buy AtomicMods.com?
AtomicMods is has been a leader in the Micro RC (remote controlled) market from the beginning and has developed an impressive following with not only loyal customers, but fans. Go ahead and Google AtomicMods and see for yourself. Note that there are over 82,000 references, now let's compare that to what is perhaps the strongest brand in all of retail; Walmart. When you Google Walmart you will see that they have 211,000 references. This kind of notoriety can only be achieved over time, with a lot of hard work and solid marketing. Buying AtomicMods will give you a huge head-start in building your eCommerce dream business.
How much do you want for it?
We are willing to get creative as I would rather see the business live on and prosper. I would consider a cash offer, but would prefer a royalty arrangement. But before we talk price, you should read on the get a sense of the value here, because there really is a lot. With some focus and a little elbow grease, I believe that this business could grow again back up to a half a million in the first year and the sky is the limit beyond that.
What assets will be included in the sale of AtomicMods.com?
The Inventory: We just completed an inventory (and as of 4-21-14) and there are currently 568 products still in stock totaling 12,575 individual pieces with an approximate retail value of $58K. The current cost value is $18K. Because of the niche market we get much better margins than the general hobby biz.
Proprietary Products: We have a number of products that we hold exclusive right to, and can't be found anywhere else. Products like the Whiplash Chassis and Billet Custom Wheels for the recently released Gen3 XMODs.
The AtomicMods.com domain has a global Alexa rank of 1,501,817 making it a very hot property considering that there are currently over 650,000,000 websites out there. You will find the Alexa report here.
The website is fully optimized for mobile devices and 30% of the overall traffic is from mobile devices as you can see from this mobile devices report.
The majority of the traffic is US based, but the site has 36 language translations selectable from the home page and we get traffic from and ship products worldwide. Here is the visitor location report.
AtomicMods Local Racing Clubs Page: Do a search for “ local racing clubs” and this page is #1. It brings folks from all over the world to the site looking to connect with other racers. We allow the clubs to post for free here as a public service, which helps the hobby, but the increased traffic is also good for AtomicMods.com. Check it out the Local Racing Page here.
AtomicMods SEO: Do a Google search for some of the more popular products like “ XMODs”, “Mini-Z” or “kyosho dnano” and you'll see that we rank at or near the top. We have a lot of street cred with the search engines and most seem to crawl the site daily. We also have a lot of backlinks from all over the web which boosts our credibility even more. We turned off Google Adwords a long time ago, because we do so well organically.
The AtomicMods eBay Store: Every item we carry is posted to our eBay Store, all current items in good stock and this required several months of determined effort to accomplish. The eBay store is a significant portion of our sales so this is very valuable.
The AtomicMods Fast Track email List: The AtomicMods.com Fast Track Newsletter currently has 47,944 individual subscribers derived completely from purchasing customers and email inquiries, and to date we have not sold this list to 3 rd parties, although I have been told that a highly targeted list like this could be worth a lot so there is certainly a lot of value there. It is a very tightly targeted list of interested customers, and everytime we send a newsletter, we get a nice bump in sales.
The AtomicMods Youtube Channel: Our channel has a respectful 8,473 subscribers with 2,463,156 Channel Views and our followers have spent 19,017 hours watching our videos! Our videos include product reviews, tutorials and plenty of just plain goofy stuff like this one (this was meant to be a fun business after all). You can visit the YouTube channel here .
The XMODRC Forum: This was the original XMODs forum that got us started and connected with customers in the first place. http://xmodrc.yuku.com so it is fitting that we ended up purchasing it.
The Social Media Pages: Our Facebook page has mostly taken the place of the forum and we presently have 1005 followers. And the Twitter page is here with 201 followers.
The eCommerce Store: AtomicMods.com runs on Volusion which is considered by many to be the best package available for running a web store. Having been on a number of platforms over the years, I certainly think so. They host and maintain it, so we have no responsibility for backup, servers, upgrades and the like. We simply nlog into it from a PC and it is very simple to use. And they are constantly adding cool new features to the platform.
What won’t be included?
We won’t be including, furniture, shelving, plastic tilt bins, tools, packing supplies, cameras, computers and the like because I use those in my other business. So it is just what you see listed above. You will need to move the inventory to your own place and provide your own shelving and computer.
So what are the sales numbers like?
AtomicMods did $106,000 in 2013, and just over $1,000,000 (yes, one million) at its peak. After we get a signed NDA in place we can share more detailed information with you. The sales have continued to decline as we stopped replenishing inventory in April of 2013, so less inventory and fewer sales means less management overhead which is good for me, but lower sales.
The sales volume is low now because I have not continued to add new products, but left it as is for the last few years. I simply don’t have time to research the new stuff, negotiate with vendors, order it, check it in, take photos, write descriptions, ETC. The traffic is there however, and it will simply be a matter of adding product categories which can be done very scientifically.
What about the profit?
AtomicMods is currently subleasing space from my other business, so I pay rent, power, phones, internet, electricity, insurance, ETC and I have an employee filling orders and responding to customers. So at the current sales numbers, some months I’m in the black, some months not. However if you run it yourself from your garage like I did in the beginning, you will be able to do pretty well and keep most of the gross profit for yourself as the only fixed expenses would be the website cost, credit card processing fees.
What will it take to grow the business?
The model has always been very simple; choose a popular car, play with it, take it apart, and figure out how to tune, tweak and make it faster. Then bring in the appropriate parts, and sometimes even create our own which is easier than you think and I’ll teach you how. Then create tutorials and how-to videos to support the category. Then move on to the next category and do it all over again. It’s been a really fun business since you essentially get paid to play with toys, in fact it is your duty! I always called it market research. And there is lots of market research to do, vendors are always sending us stuff to test and try out, most of it never sees the site for various reasons, but it is still fun to tinker with all of the different designs and new products that come our way.
Another trick is the Volusion software tells you the keywords people are searching with on the site, and Google Analytics tells you the keywords that brought them in the first place so that is a good place to start. Although an amazing amount of our traffic is people simply typing in our URL of AtomicMods.com or searching for AtomicMods which speaks volumes about our brand recognition. This is a business that could grow as large as you want if you focus on it. It is a pretty easy and low stress business, the product is fun, and the customers are a pleasure to serve.
How to get more information about AtomicMods.com
Well since this is going out to 46,000+ people, I will not be able to respond to unqualified inquiries. What does it mean to be qualified? Well for starters, you need to be at least 18, and then you need to have some money or the ability to borrow some, and finally you must sign the NDA located here. Then submit the signed NDA to rob@atomicMods.com. And remember, the reason I am selling is a severe lack of time to dedicate to the business, so please don’t contact me unless you are a qualified buyer.
In the meantime you can also browse around the website and read about us here . And if you want to put eyes on the shop, visit the ShopCam.
What will happen to the employees?
Frank is currently the only employee, and we are going to try to find a place for him at Truewater. He is a great guy with fantastic customer service skills and a lot of RC knowledge and experience. However, if the new buyer wanted to hire him that is fine with us, but he does not want to leave Houston.
What is the history of AtomicMods.com?
When I started tinkering with XMODs in 2003 I had no idea what lay in store. I created a Lithium Ion Battery Pack (which doubled the XMODs stock speed of 12MPH), posted some videos in the XMODSRC Forum (which we now own), created a one page website and there was immediate interest. My wife Susan and I began filling orders with me making battery packs and other parts, and Susan putting the parts in bags and addressing them while we watched Mythbusters. It was fun, but the business quickly outstripped our ability to keep up. We started hiring people and the business kept growing and in a few short years we grew to 7 employees and one million in annual sales with several thousand products on the web site. It was a wild ride, and not only have we made some good money, we have had the opportunity to have many once in a lifetime experiences. Such as spending several weeks’ in China touring the continent and visiting factories and working with manufacturers to develop new products and refine existing ones. Sponsoring a Mini-Z World Cup Racing team that took us all over the world and has taken top honors multiple times, working with schools to develop RC programs to engage students and teach them about physics, mechanics & electronics. And best of all we have made some lifelong friends. It has also been fun being somewhat of a celebrity, but I have never quite gotten used to people asking for my autograph when I go to RC related shows and events. However, we also have another business www.truewater.com that demands most of our time and were unable to dedicate the time required to keep things up to date and moving forward as things changed and new products came out, and so the business began to slowly decline. Couple that with the purchase of our Motor Coach which keeps us on the road much of the time and this has left little time for AtomicMods.com.
We would like to sell the business to someone who has the time to focus on it, and see it grow again so we thought we would reach out to our customers and see if any of you might be interested. AtomicMods would be a great business for someone to run from their garage. That is until you outgrow it like we did. AtomicMods is a solid platform and with some focus and dedication it could become as large as you want to grow it.