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.
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.