December 16, 2019

I got $100K acquisition offer for Visa List

HaKr @1hakr

After my Visa List launch on ProductHunt, i posted a gist of my journey on Reddit and what do you know, i got a message from a some guy who said he was willing to buy Visa List for $100K.

This is not the first time i got an offer to sell Visa List, in fact i think this is the 7th time in a year. It made me think what is actually the value of Visa List and how can i decide that irrespective of whether i want to sell or not. So i did some math based on Visa List stats

  • MAU : 310K
  • Monthly Page Views : 650K
  • Monthly Revenue : $5,000
  • Growth Rate: 10%
  • Yearly Revenue w/o Growth: $60,000
  • Yearly Revenue w/ Growth: $106,921

Selling for $10000 would mean a loss of $6000 on the face of it but you are actually losing a lot more revenue. Usually you have to consider the lifetime value, let's say you 5 years, you can potentially make $0.5M or may be more so you are actually losing a lot.

On the other hand cash flow is more risky and there is no guarantee if it will actually survive for that long and keep the growth rate. Having said that, these acquisition offers rarely close, so 95% of the time someone is just wasting yours and their time at the same time.

I'm not saying you shouldn't sell, you can if you need cash very badly and/or you don't believe in your microstartup very strongly. No shame in admitting that, not every idea can be successful. I have more than 10 ideas didn't see the light of the day.

I believe in Visa List and wouldn't sell it for money any day but thats just me. What do you guys think?

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