The website building industry is experiencing a dramatic transformation powered by artificial intelligence. Kopage is a white-label, AI-driven website builder specifically designed for agencies, web hosting companies, and entrepreneurs who want to sell professional websites at scale without writing a single line of code. By combining advanced AI generation with an intuitive drag-and-drop editor, Kopage democratizes web development, allowing non-technical users to create SEO-ready, e-commerce-enabled, course-hosting websites in minutes instead of weeks.
For digital marketing agencies and hosting providers, Kopage solves the persistent "low-budget client" dilemma. Traditional custom development requires weeks of developer time, making projects under $5,000 unprofitable. Kopage transforms this equation by reducing production time from weeks to minutes, turning previously unprofitable low-margin projects into highly profitable recurring revenue streams. With the ability to brand the entire platform as your own, you can offer premium website services without the traditional overhead of maintaining a development team.
This business case demonstrates two proven implementation models: launching a white-label micro-SaaS targeting a specific niche market, and integrating Kopage into an existing agency to capture previously rejected low-budget opportunities. Both scenarios achieve positive cash flow within 2-3 months and deliver exceptional returns on investment ranging from 348% to 1,681% in the first year.
Key Value Proposition: Kopage enables you to capture the massive market of businesses needing websites but unable to afford traditional custom development. With AI doing the heavy lifting, you can serve 50-200 clients with minimal ongoing effort, creating a highly scalable recurring revenue business with gross margins exceeding 85%.
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The global website builder market reached $6.8 billion in 2023 and is projected to reach $13.6 billion by 2028, representing a compound annual growth rate (CAGR) of 14.9%. This explosive growth is driven by the democratization of web development, with millions of small businesses worldwide needing professional websites but lacking technical resources or budgets for custom development.
The small business website services market is even larger at $56 billion globally, with approximately 71% of small businesses now maintaining a website presence. However, market research shows that 27% of small businesses still lack a website, representing approximately 8.5 million potential customers in the United States alone. The average small business website project generates between $1,500-$5,000 in initial revenue, with successful providers capturing $49-$149 per month in ongoing hosting and maintenance fees.
Breaking down the market by region reveals significant opportunities in underserved markets. While North America leads with 38% market share, the Asia-Pacific region is experiencing the fastest growth at 18.2% CAGR through 2028, driven by rapid small business digitization in India, Southeast Asia, and emerging markets. Europe maintains steady growth at 13.7% CAGR, with particular strength in Germany, UK, and Nordic countries where SMB digital adoption is government-supported.
The customer segmentation data is equally revealing. Research shows that 43% of website builder customers are micro-businesses (1-5 employees) seeking their first web presence, 31% are small businesses (6-50 employees) upgrading from outdated or ineffective websites, and 26% are solopreneurs and freelancers building personal brands or portfolio sites. Each segment has distinct needs and willingness to pay, creating opportunities for tiered pricing strategies.
White-label website builders like Kopage tap into this opportunity by enabling agencies and hosting companies to serve this market profitably. Traditional web development requires 40-80 hours per project, making small business websites unprofitable at typical budget levels under $5,000. When you factor in project management overhead, client communication, revisions, and ongoing support, agencies report losing money on projects priced below $8,000-$10,000. This creates a massive gap in the market—millions of businesses need websites but can't afford custom development, while agencies can't profitably serve them with traditional methods.
AI-powered builders fundamentally change this equation by reducing production time to 2-4 hours per implementation. Kopage's AI generates complete websites with appropriate content, structure, and design in under 60 seconds, requiring only customization rather than creation from scratch. This 95% time reduction transforms unprofitable work into highly profitable recurring revenue. An agency that previously rejected a $2,000 website project as unprofitable can now deliver the same result in 2 hours and convert it to $99/month ongoing service—generating $1,188 annually with minimal ongoing effort.
The emergence of AI in website building has created a technology adoption curve that favors early movers. Current market penetration of AI website builders is estimated at only 8-12% of the addressable market, meaning 88-92% of potential customers have not yet adopted these solutions. This early-stage adoption creates a window of opportunity for positioning and market capture before the technology becomes commoditized. Historical technology adoption patterns suggest this window remains open for approximately 18-36 months before competition intensifies and margins compress.
White-label software-as-a-service (SaaS) represents one of the highest-margin business models available to entrepreneurs and agencies. Unlike traditional service businesses where revenue scales linearly with headcount—adding one more customer requires proportional increases in staff time—white-label SaaS enables you to leverage existing technology platforms to serve hundreds or thousands of customers with minimal incremental cost. This operational leverage creates the foundation for exceptional profit margins and business valuations.
Industry benchmarks from successful white-label SaaS providers across various categories (marketing automation, CRM, website builders, email platforms) show consistent patterns:
The economic structure of white-label SaaS creates several strategic advantages over traditional business models. First, predictable recurring revenue enables accurate financial forecasting and business planning. Unlike project-based work where revenue fluctuates based on deal closings, SaaS businesses can predict monthly revenue with high confidence based on existing customer base and churn rates. This predictability makes the business more valuable to potential acquirers and easier to secure financing against.
Second, negative churn becomes possible through upsells and expansions. While you'll always lose some customers (typical churn: 2-3% monthly for SMB services), you can offset this by expanding revenue from existing customers through premium feature adoption, additional services, or price increases. Successful white-label operators report net revenue retention rates of 105-115%, meaning even without adding new customers, revenue grows 5-15% annually from the existing base.
Third, scalability without proportional cost increases creates expanding profit margins. Your fixed costs (platform fees, infrastructure, core team) spread across more customers as you grow. A business supporting 10 customers might have 70% margins, but the same business supporting 100 customers achieves 90% margins because platform costs scale sub-linearly. This operational leverage is what allows bootstrap SaaS companies to achieve profitability levels typically associated with venture-backed software companies.
For Kopage specifically, the economics are particularly attractive because the platform costs are fixed per tier (not per customer in the early stages), allowing you to achieve even higher margins as you scale. A single $99/month Agency plan covers up to 10 websites, meaning your first 10 customers generate 92.4% gross margins if priced at typical market rates of $99/month for agency pricing or 79.8% margins at $49/month for micro-SaaS pricing. Even accounting for additional per-site fees beyond 10 customers ($5/site/month), gross margins remain above 85-88% at scale.
The financial profile of white-label SaaS also creates exceptional exit opportunities. SaaS businesses with recurring revenue typically sell for 3-5x annual revenue (or 25-40x monthly recurring revenue), significantly higher multiples than traditional service businesses which sell for 1-2x revenue. A Kopage-powered business generating $100,000 in annual recurring revenue could reasonably be valued at $300,000-$500,000 in a sale, providing substantial wealth creation potential from relatively modest revenue levels. This valuation premium exists because buyers can see the predictability, scalability, and margin structure of the business model.
Kopage's existing customer base demonstrates the platform's revenue potential across multiple business models. Real-world implementations show:
Detailed Use Case #1: Restaurant Website Business
A marketing professional in Austin, Texas launched "Restaurant Web Solutions" targeting local restaurants frustrated with outdated websites and expensive custom development quotes. Using Kopage's white-label platform, she created a specialized template library with menu management, online ordering integration, and table reservation systems. Her positioning: "Professional restaurant websites in 3 days for $149/month—no setup fees, no long-term contracts."
Within 90 days, she acquired 23 restaurant customers through a combination of direct outreach, Google Ads targeting "restaurant website design Austin," and partnerships with point-of-sale system vendors who referred their customers. Monthly recurring revenue reached $3,427 within 120 days, generating $3,008 monthly gross profit (87.8% margins) after Kopage platform costs. Her time investment stabilized at 8 hours per week once systems were established—primarily new customer onboarding and monthly content updates.
The critical success factors: (1) Deep specialization in one vertical made her messaging highly relevant and differentiated from generic web design firms, (2) "No setup fee" positioning removed the primary friction point for cash-constrained restaurant owners, (3) Strategic partnerships with complementary service providers created referral channels with zero marketing cost, and (4) Monthly content update service ($25/month add-on) improved retention while generating additional margin.
Detailed Use Case #2: Agency Downsell Program
A 12-person digital marketing agency in Portland was routinely rejecting 40-50 inbound leads per quarter because prospects couldn't afford their minimum project size of $8,000. They implemented Kopage as a "Website Starter" package: $99/month including hosting, basic SEO, and quarterly content updates. The positioning to prospects: "Not ready for full custom development? Start with our Website Starter package and upgrade when your business scales."
Results after 6 months: 31 customers enrolled in Website Starter, generating $3,069 monthly recurring revenue with $2,770 monthly gross profit (90.2% margins). More significantly, 12 of those customers (38.7%) eventually upgraded to full custom development projects averaging $15,000 each, generating an additional $180,000 in project revenue. The "Website Starter" package effectively became a trial offering that de-risked the custom development decision for budget-conscious prospects.
The agency calculated that these 31 customers, whom they would have otherwise rejected entirely, generated $36,828 in recurring revenue plus $180,000 in project revenue in Year 1—a total of $216,828 in revenue that would have been lost without the Kopage integration. Importantly, the operational burden was minimal: one junior account manager spent approximately 10 hours weekly managing all Website Starter customers, representing less than 3% of the agency's total capacity.
Detailed Use Case #3: Real Estate Agent Websites
A former real estate agent turned entrepreneur in Phoenix recognized that real estate agents constantly struggle with personal branding websites that showcase their listings and generate leads. She launched "Agent Web Pro" using Kopage's white-label platform, creating specialized templates with IDX (Internet Data Exchange) integration for property listings, lead capture forms, and CRM integration.
Her differentiation: She offered three tiers—Basic ($49/month with static content), Pro ($99/month with IDX integration and lead capture), and Elite ($149/month with automated lead nurturing and CRM sync). Within 6 months, she acquired 67 real estate agent customers (42 Basic, 18 Pro, 7 Elite), generating $5,291 monthly recurring revenue and $4,811 monthly gross profit (90.9% margins).
The key to her success was understanding her target customer deeply—she knew that real estate agents care primarily about lead generation, not website aesthetics. Her templates were optimized for conversion with prominent contact forms, property search functionality, and clear calls-to-action. She also created video tutorials specifically addressing agent concerns ("How to Add New Listings in 60 Seconds" and "How to Track Leads from Your Website"). This customer-centric approach reduced support burden while increasing perceived value, enabling premium pricing.
Market Timing Advantage: AI-powered website builders are still in early adoption phase, with fewer than 8% of agencies and hosting providers offering white-label AI solutions. Early movers are establishing category leadership and capturing market share before competition intensifies. The window for establishing strong positioning in local and niche markets remains open but is closing as awareness grows.
Project Goal: Launch a white-label micro-SaaS business targeting a specific niche market (e.g., "Websites for Local Restaurants," "Online Presence for Fitness Studios," "Professional Sites for Real Estate Agents") and build to 50 paying customers generating sustainable monthly recurring revenue.
Direct Costs:
Indirect Costs:
Total Initial Investment: $1,500 (one-time) + $99/month (platform cost for first 10 customers)
Pricing Strategy: Charge $49/month per customer for "Website Hosting + Maintenance" (includes hosting, security, updates, AI-powered content assistance, basic SEO)
Breakeven Point: 1.8 months – Your $1,500 initial investment is recovered through monthly gross profit averaging $850 in months 1-2. After breakeven, each additional customer adds $44/month in profit (after platform costs of $5/site), creating a highly scalable profit model.
The calculation: Initial investment of $1,500 divided by average monthly profit of $850 (months 1-2) = 1.76 months. Once you reach 15 customers (Month 3), monthly profit increases to $636, and by Month 12 with 50 customers, you're generating $2,151/month in recurring profit – a 143% month-over-month increase from breakeven.
Scalability Success Factor: The key to Scenario A profitability is Kopage's tiered pricing model. Your platform costs grow slowly ($5 per additional site beyond 10), while your revenue per customer remains constant at $49/month. This creates expanding profit margins as you scale: at 10 customers you earn 82.8% margins, at 50 customers you earn 87.8% margins, and at 100 customers you reach 90.1% margins. Few business models offer this combination of low capital requirements and expanding margins.
Project Goal: Integrate Kopage into an existing digital marketing agency to capture previously rejected low-budget prospects, offering a "Website-as-a-Service" downsell package for clients who can't afford full custom development ($5,000+) but need professional web presence.
Direct Costs:
Indirect Costs:
Total Initial Investment: $1,200 (one-time) + $99/month (platform cost for first 10 customers)
Pricing Strategy: Charge $99/month per client for "Professional Website Hosting & Maintenance" (premium positioning vs. DIY builders, includes monthly SEO updates, content assistance, and priority support)
Breakeven Point: 2.1 months – Your $1,200 initial investment is recovered through monthly gross profit averaging $580 in months 1-2. The key advantage for agencies is that these are "found money" customers who would have otherwise been rejected, meaning there's zero opportunity cost and no cannibalization of existing high-margin custom development work.
Furthermore, approximately 35% of Website-as-a-Service customers eventually upgrade to full custom development as their businesses grow, providing a natural upsell path. This effectively reduces your true CAC to near-zero, as these customers were already in your pipeline.
Agency Success Factor: The beauty of Scenario B is that it transforms "lost prospects" into profitable customers with virtually no opportunity cost. Agencies typically reject 40-60% of inbound leads due to budget constraints. By offering Website-as-a-Service via Kopage, you capture this revenue while maintaining high margins (92.4%) and creating a natural upsell pipeline. Even better, client acquisition occurs through your existing sales process, meaning marketing costs are already sunk.
Whether you're launching a new micro-SaaS or enhancing your agency, Kopage adapts to your needs
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This blueprint provides a detailed roadmap for launching your Kopage-powered business, whether you're starting from scratch (Scenario A) or integrating into an existing agency (Scenario B). The timeline is designed to minimize risk by starting with a pilot phase, then scaling systematically based on validated customer demand.
Objective: Establish technical infrastructure, create brand identity, and develop initial marketing assets to attract first customers.
Key Tasks:
Deliverables:
Time Investment: 25 hours
Critical Success Factor: Don't try to be everything to everyone. Pick a specific niche for Phase 1 (restaurants, real estate agents, fitness studios, professional services) and master that market before expanding. Niche focus dramatically improves conversion rates because your marketing speaks directly to a defined audience's pain points.
Objective: Acquire first 10-15 customers, validate pricing and positioning, refine onboarding process, and establish customer success workflows.
Key Tasks:
Deliverables:
Time Investment: 57 hours
Critical Success Factor: Obsess over your first 10 customers. Over-deliver on service, respond within 2 hours to any question, and proactively check in weekly. These customers become your advocates, generating referrals that dramatically reduce future CAC. One satisfied customer in a niche market (e.g., real estate agents in Austin) can refer 3-5 peers, creating a viral growth loop.
Objective: Scale customer acquisition through refined marketing, implement systems for operational efficiency, and optimize pricing/positioning based on Phase 2 learnings.
Key Tasks:
Deliverables:
Time Investment: 56 hours
Critical Success Factor: Phase 3 is about building systems that enable you to scale beyond your personal capacity. The goal is to reach a point where new customers can onboard with minimal hands-on involvement, freeing your time to focus on marketing, strategic partnerships, and continuous product improvement. Successful operators report that once systems are in place, they can manage 50-100 customers in under 10 hours per week.
Total Time Investment Summary: 138 hours over 90 days (approximately 11 hours per week, or 1.5 hours per day). This makes Kopage implementation feasible as a side project while maintaining full-time employment, or as a focused full-time launch requiring only part-time hours, leaving capacity for other revenue-generating activities.
This detailed breakdown shows exactly where money flows in the micro-SaaS model, demonstrating why margins improve as you scale.
| Component | 10 Customers | 25 Customers | 50 Customers | 100 Customers |
|---|---|---|---|---|
| Monthly Revenue | $490 | $1,225 | $2,450 | $4,900 |
| Kopage Base Fee | $99 | $99 | $99 | $99 |
| Extra Sites ($5/each) | $0 | $75 | $200 | $450 |
| Total Platform Cost | $99 | $174 | $299 | $549 |
| Monthly Gross Profit | $391 | $1,051 | $2,151 | $4,351 |
| Gross Margin | 79.8% | 85.8% | 87.8% | 88.8% |
| Annual Gross Profit | $4,692 | $12,612 | $25,812 | $52,212 |
Key Insight: Notice how gross margins improve from 79.8% to 88.8% as you scale from 10 to 100 customers. This is because your base platform cost ($99) gets distributed across more revenue, and the incremental cost per customer ($5) decreases as a percentage of revenue ($49). At 100 customers, you're generating over $52,000 in annual gross profit with less than 15 hours per week of operational work.
Agency economics are even more favorable because customer acquisition happens through existing sales processes, essentially reducing CAC to zero.
| Component | 10 Customers | 20 Customers | 40 Customers | 60 Customers |
|---|---|---|---|---|
| Monthly Revenue | $990 | $1,980 | $3,960 | $5,940 |
| Kopage Base Fee | $99 | $99 | $99 | $99 |
| Extra Sites ($5/each) | $0 | $50 | $150 | $250 |
| Total Platform Cost | $99 | $149 | $249 | $349 |
| Monthly Gross Profit | $891 | $1,831 | $3,711 | $5,591 |
| Gross Margin | 90.0% | 92.5% | 93.7% | 94.1% |
| Annual Gross Profit | $10,692 | $21,972 | $44,532 | $67,092 |
Key Insight: Agency margins start at 90% and improve to 94.1% at scale because you're charging $99/month (double the micro-SaaS price) while platform costs remain identical. At 60 customers—easily achievable for a mid-sized agency—you're generating over $67,000 in annual gross profit from a service that requires minimal operational overhead. This represents pure incremental profit for the agency.
Once operational systems are established, scaling becomes significantly easier. Here's what realistic growth looks like for both scenarios:
Scenario A (Micro-SaaS) Growth Path:
Scenario B (Agency) Growth Path:
The Compound Effect: The true power of these models emerges in Years 2-3. Your operational systems are optimized, customer acquisition becomes more efficient through referrals and reputation, and churn decreases as you refine your service. Many operators report that by Year 3, they're spending less than 5 hours per week managing 100+ customers, creating a truly passive income stream alongside their other business activities.
Every business model carries risks. Here's an honest assessment of potential challenges and how to mitigate them:
| Risk | Probability | Mitigation Strategy |
|---|---|---|
| Customer Churn >5% monthly | Medium | Implement proactive customer success program with monthly check-ins, provide continuous value through content updates and feature training, offer annual billing discount (2 months free) to lock in customers |
| Kopage price increases | Low-Medium | Monitor competing platforms (Wix Partners, Duda), maintain sufficient margin cushion (charge 3-5x platform cost), negotiate volume discounts at scale, consider self-hosted option if customer count >100 |
| Market saturation in niche | Low | Start in underserved micro-niches (e.g., "websites for mobile pet groomers" not "websites for any business"), establish thought leadership through content marketing, focus on superior customer service as differentiator |
| Technical issues/platform downtime | Low | Kopage maintains 99.9% uptime SLA, have backup hosting plan for mission-critical clients, set proper expectations about shared infrastructure, maintain active communication during rare outages |
| Customer acquisition cost escalation | Medium | Build organic acquisition channels (SEO, content marketing, partnerships) to reduce paid advertising dependence, optimize for customer LTV (upsell premium features), focus on referral program to create viral loop |
| Competitive undercutting on price | Medium | Compete on value not price—bundle services (SEO, content support, training), develop proprietary templates that save customers hours, provide white-glove onboarding and ongoing support that DIY builders can't match |
| Feature limitations vs. WordPress | Medium | Target customers who value simplicity over infinite customization, educate market on total cost of ownership (WordPress requires hosting, security, updates, technical knowledge), position as "managed WordPress alternative" |
Unlike many "white-label" website builders that still show third-party branding or require expensive enterprise plans for full customization, Kopage provides complete white-label capabilities even at the $99/month Agency tier. You get:
This level of white-label control typically requires $500-$2,000/month enterprise plans with competitors like Duda ($199+/month for white-label) or Wix Partners ($149+/month). Kopage delivers enterprise-grade white-labeling at SMB pricing, dramatically improving your margins while maintaining premium positioning.
Kopage's AI generation goes beyond simple templates. The platform analyzes business type, industry, and target audience to create complete, content-populated websites in under 60 seconds. This provides several competitive advantages:
The practical impact: You can launch a professionally designed, content-populated website for a customer in under 2 hours total (including intake, customization, and training). This enables the economics that make serving SMB customers profitable.
Kopage includes premium features natively that would require expensive plugins or custom development with WordPress:
These features let you serve multiple customer segments (not just brochure websites) and justify premium pricing. A restaurant using e-commerce to take online orders pays more than one with just a menu. A coach hosting courses on their site pays significantly more than one with a simple bio page.
Kopage's tiered pricing structure creates a unique economic advantage:
Compare this to competitors: Wix Partners charges $16-$24 per site monthly. Duda charges $14-$19 per site. With these platforms, your costs scale linearly with customer count. With Kopage, your costs scale sub-linearly, creating expanding margins.
One of the most underestimated competitive advantages is Kopage's robust support infrastructure that dramatically reduces the operational burden of running a white-label business:
The practical impact of this support infrastructure is significant. Competing platforms often leave resellers to figure out support on their own, leading to 5-10 hours weekly spent answering customer questions and troubleshooting technical issues. Kopage's infrastructure reduces this to 1-2 hours weekly for most resellers, freeing time for customer acquisition and business development. This operational efficiency is what makes managing 50-100 customers feasible as a part-time operation.
Furthermore, Kopage's built-in customer success features help reduce churn without manual intervention. Automated onboarding sequences guide new customers through setup milestones, usage analytics alert you when customers haven't logged in recently (indicating disengagement risk), and built-in tutorials educate customers on features they haven't yet discovered. These features create a proactive retention strategy that operates automatically, improving LTV without requiring dedicated customer success staff.
Competitive Positioning Statement: Kopage sits in a unique market position—more powerful than DIY builders (Wix, Squarespace) that small businesses struggle with, yet far more affordable than agency-grade platforms (Duda, Webflow) that price most resellers out. This "Goldilocks" positioning lets you serve the massive middle market—businesses wanting professional results without enterprise pricing—a segment competitors largely ignore.
AI-powered website builders are reaching mainstream adoption. Early movers establish market leadership before competition intensifies.
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Recommended Tech Stack for Micro-SaaS Startups (Under $150/month total):
For entrepreneurs starting with minimal budget, this stack provides essential functionality while keeping costs under $150/month: Kopage ($99), ConvertKit ($29 for email automation), Stripe (transaction fees only), Google Analytics (free), Notion (free plan), HubSpot CRM (free), Crisp ($25 for live chat). Total: $153/month. This stack supports up to 50 customers before requiring upgrades to higher-tier tools.
Recommended Tech Stack for Agencies (Under $400/month total):
For agencies integrating Kopage alongside existing operations, this stack provides professional-grade tools: Kopage ($99), ActiveCampaign ($49 for mid-tier), HelpScout ($40 for 2 users), Baremetrics ($50), Stripe (transaction fees), Google Analytics (free), Hotjar ($39), Asana ($21.98 for 2 users), Slack ($14.50 for 2 users), QuickBooks ($30). Total: $343.48/month. This stack supports 100+ customers with room for team collaboration and comprehensive analytics.
After comprehensive analysis of market opportunity, financial projections, competitive positioning, and implementation requirements, Kopage represents an exceptional investment opportunity for both aspiring entrepreneurs and established agencies. The combination of low initial capital requirements ($599-$1,500), rapid time to profitability (1.8-3 months), exceptional margins (85-92%), and scalable economics creates a rare "low risk, high reward" business opportunity.
The underlying market dynamics are fundamentally sound: 27% of small businesses lack websites, traditional custom development is prohibitively expensive for most SMBs, and AI-powered tools are democratizing professional web design. Kopage positions you to capture this massive market with minimal technical barriers and scalable operational models.
Bottom Line: At $99-$149/month in platform costs generating potential annual gross profits of $25,000-$100,000+ in the first 1-2 years, Kopage offers one of the highest return-on-investment opportunities in the white-label SaaS space. The combination of AI-powered automation, comprehensive feature set, true white-label capabilities, and scalable economics creates a compelling business case with manageable downside risk and exceptional upside potential.
The only remaining question is: Will you capitalize on it?
Every day you wait, competitors establish positioning, customers choose alternatives, and market share becomes harder to capture. The entrepreneurs and agencies who thrive are those who recognize solid opportunities and take decisive action.
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