Dividend Ten

Freelance & personal finance journal

Make Money

Just listed my $16,167/ yr revenue biz on Flippa for $1

So for those of you who follow my income reports know, Fiverr has been a consistent “side hustle” that I run which typically brings in between $1-$2k / mo, with zero in the way of promotion.

I tallied up all revenue it generated over 2016, and saw that it earned $16,167.

I became curious, if I just sold the whole enchilda to someone, along with my “recipe” for how I fulfill it, what could I get for it?

This question goes to the heart of valuation – which is a key question for anyone who buys stocks. Whether you’re buying a slice of a massive company like Coke, or 100% of a teeny company like my Fiverr side hustle, the value of a company is the sum of all cash flows that you can extract from the business.

So assuming that $16,167 is consistent, would it be worth to a buyer – 1x years sales, 2x, 5x?

I decided to let the market tell me what it was worth.

Yesterday, I put the site up for sale on Flippa. The auction started at $1.

It cost me $29 to list my website. They offer a lot of other options to spend more to promote it get more eyeballs, but I declined.

I wrote the following headline, which I hoped was attractive enough to get some eyeballs:

$16,167 revenue in 2016 – 2 yr micro-business w/ 705 5 star customer reviews

I then went on to explain.

This unique opportunity includes a 2 year old Fiverr account, has earned me $30k+ since launch. I’ve done exactly ZERO promotion and I will provide a simple delivery template that anyone can follow.

Flippa pulled in my verified analytics data (which are somewhat useless in this case) and I uploaded revenue proof, various screenshots and other proof points that I thought would make the listing compelling.

The auction is set to run for 30 days.

I’m really curious to know what value this business has.

What do you think? As a sophisticated investor, how would you value this business?

In case you’re curious, the full listing is located here.

Will see how the auction plays out this month.

 

5 Comments

  1. This is an interesting journey for you. I once sold my website which was just ad revenue for roughly 12x monthly income. But if the website actually has a “stable” income then sure it is worth perhaps 24x monthly income or perhaps more!

  2. R2bk

    Hi 10,

    Why ending the auction so early? I think its a great product you selling!

    Cheers,
    R2bk

  3. Good luck on the auction!
    Divi Cents recently posted…Dividend Income – March 2017My Profile

  4. Jay

    Hey Greg,

    Thanks for posting this. I was curious to bid on your site but it looks like the auction has ended. I’d be curious to speak with you about this more, or interested to bid if you re-open the auction.

    Cheers!
    Jay
    Jay recently posted…How to Diversify Your Portfolio Like the Hedge Funds Pro’sMy Profile

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