Should I sell my SaaS for 5k to my co-founder?
Hi,
Currently, our app dogfluence.com has an MRR of 1.5k. I've been working on it for the past 2.5 years (AVG of 6 hours a week). I really enjoyed working on it, but my passion has waned in recent months
Some stats:
- 3292 users;
- 15616 on the mailing list;
- 372 companies;
- 5k impressions per day - 300 clicks (in search console);
- 1.5k MRR;
https://simpleanalytics.com/dogfluence.com
It's a very cool product but the code base is not that good, because we shipped fast and did not know what direction we wanted to go. If I proceed with the project it should be rebuilt from scratch (backend/frontend code).
It's a very big project and complex project, and in relation to the code base and the number of users, it still generates too little money.
What would you do? Should I sell it to my co-founder who definitely wants to go through with it, for 5k?
Or should I give it 1 more year? If I sell the project I will invest my time in other Saas projects.
Please let me know your opinion :)
A value of 2-3x on the average ARR over the last 2 years is reasonable, so that’s $36k if the $1.5k MRR is an average (and not a peak). Divided by 2 (assuming you own 50%) is $18k. So $5k sounds very low.
But there are too many unknowns like:
And then there’s your time and happiness. If your heart’s not in it then $5k to walk away is a sweet deal. But if you want to get 50% of the value of the business then it’s likely more.
Very thorough estimation
Thanks! Appropriate it
15k mailing list + $1.5k MRR (4 months "he makes it back"). The appropriate price would be around 40k
@larsjanssen6 chat with the guys at motioninvest, FE International, or even Empire Flippers.
They'll give you a realistic valuation, which you can use to negotiate with your partner.
5K is too low. On microacquire you can sell Saas for 36-50x MRR. Bringing the valuation of your solution to at least 40k. So, I think you should target a compensation around 20k.
Think about your time and value. Calculate it
No, I wouldn't sell. 5K is really not that much for those impressive stats.
You'll get your 5000$ after 3 Months or do you split it with your partner and you get 5k in 6 months, right?
So you say 1.5k is not so much but other guys don't get 1.5k in months.
Sell it if you don't want put work in this project in the future.
Don't sell it because it's too much work to put in.
Just my 20 cents
Create another SaaS side by side. Use existing mailing list and SaaS product to promote new SaaS. When new SaaS gains popularity... think on upgrading your existing SaaS!
No. Those 15616 on the mailing list can be worth alot more.
It will produce more later
I think that in case you don't see any expansion or new opportunities for your SaaS it is the right decision to sell it and invest in a new product.
I wouldn't sell it. Keep it as a passive income. And you don't need to rebuild anything, unless you want to scale.
I don't think you need to sell,
YOu build a passive income digital asset, Good job!
Bow go next and increase the MRR or bring someone that will do it for you!
Probably more in the 1-4x ARR range
Selling your SaaS to your co-founder for 5k may be a good option if you are looking to exit the business and move on to something else, or if you need the money urgently. On the other hand, if you believe your SaaS has the potential to grow and generate more revenue in the future, you may want to hold onto it or consider selling it for a higher price.
Additionally, you should consider the relationship with your co-founder and the terms of the sale. Is 5k a fair price for the value of the business? Are there any other potential buyers or investors that may offer a better deal? It's important to evaluate all of your options before making a decision.
Ultimately, the decision to sell your SaaS to your co-founder for 5k should be based on your individual circumstances and what you believe is best for you and your business.
You getting 5k for selling 50% ?
A spreadsheet will almost always tell you to hold the SaaS and reconsider selling it in six months and it will generally be correct.https://jefferytalthomas.com/
This is very low. What people say is 10x or 20x your MRR is a good bet.
On other side, when you will have enough MMR, you can hire dev to rework it
Just thinking out loud, up to you
And good luck 💪🏻
Hi! Interesting product! To answer your question - No! Don’t sell it! 😅
What would be interesting is to know how many paying customers. If I look at the priceplan and divide lowest tier on MRR. You have 30 paying customer?
What would i would focus on is plg approach on steroids and cover more communication with your customers on the freemium tier. Do you have any statistics of converts from freemium tier to a subscription?
I would gladly help you guys out, im on a journey were I want to share my knowledge/experience and at the same time learn by learning and connect with new interesting entrepreneurs! 🤩🚀
If anyone else read this and want me to review anything, get feedback, discuss just PM me or add me on twitter or linkedin. ☺️🙏🏻
https://www.linkedin.com/in/robinwilgott