My community is worth $18,000

Hey Tim, agreed that you cant really make a valuation from 1 sponsor.

However, I have been approached by a few additional companies about sponoring the community, so hopefully there are a few bidders when the next sponsorship window opens up 😊

Here is the whole thread if you don't want to click through to Twitter:

My community is worth $18,000

👇 Here's the logic behind that valuation:

I've received an offer to sponsor my community for ~$600/month.
After the expenses of running the community, that comes out to about $500/month in profit.

$500/month x 12 months = $6,000 year in profit

I don't really know what kind of multiples sponsored communities sell for, but going with 3x annual profit seems pretty reasonable to me.

3 x $6000 = $18,000

So from a strictly financial acquisition standpoint, the community could be worth about $18,000

However, a strategic acquirer might value the community much higher, if, for example, their target customers were people in the community, and they sold a high ARPU product or service

Want to add that I have no interest in selling the community.
Just considered it an interesting thought-experiment.

Does anyone have any experience with buying or selling communities from a strictly financial acquisition standpoint?

I only know of strategic community acquisitions, such as @stripe acquiring @IndieHackers from @csallen

Here is my community, for anyone curious: www.localseocommunity.com

@agazdecki
@NathanLatka
Have either of you ever heard of a financial acquisition of a community? (as opposed to strategic)

Haha I got to brush up on my Spongebob 😅