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leandot | 2 years ago

First of all congrats for creating something and achieving some traction. However, on the valuation side I think the things are a bit different. The size is just too small to justify a higher multiple, because you have to maintain the product, invest in marketing, etc. Until at least 5-6k mrr the buyer would be at a net negative (either hire someone to maintain or do it themselves and in a lot of countries the mrr is enough for neither).

A strategic buyer might buy it for the potential, but also at that size they can likely copy it quickly and with a bit of marketing scale it up.

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avinoth|2 years ago

I guess it's a bit of this and bit of that. The products I've sold before or discussed with others were on the former side. I think that was largely due to the metrics that are usually used to qualify (churn, MoM growth, etc.) are bit less impactful compared to a mature, stablized product.

It's mostly seen as a jumping board for them to quickly get going, compared to finding idea, building it, getting some SEO footing, etc. That's just my anecdotal experience btw.