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Tiny Acquisitions

tinyacquisitions.com

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Re: Tiny Acquisitions

#111

Post by runako »

alex_g wrote: post #68

If you're interested in buying and/or selling small projects, you can typically expect to pay more than $5k for something that's making any consistent amount of money. You're also unlikely to find a great deal on a really special project on a marketplace. People who post on marketplaces like Flippa or MicroAcquire or SideProjectors (there're dozens of them) have either: 1. Realized the time it takes to maintain is no…

There are a lot of reasonable reasons people would list a sub-scale business on a site like those. Some examples:

Take an app that makes $500 net monthly and requires 1-2 hours per week of work. Solid hourly rate, why sell? Except:

- Sudden change in family responsibilities leaves founder without the small amount of time needed.

- The business might net $5k in a sale, and the founder has an urgent need for cash (for ex for home purchase/repairs). The founder resigns to a fire sale because she needs money now.

- Founder realizes the business will remain sub-scale until someone injects another $50k. Founder has a day job but not $50k, and has no interest in raising money.

- Founder's job reviews side project and decides it's too close to "competitive" and asks founder to dispose of it.

- Founder takes a new job that prohibits side gigs.

- Founder gets sick and isn't able to maintain the business.

- Founder gets divorced and is ordered to split the value of the business with ex-spouse. (A sale may be the founder's only option to produce the cash.)

- Founder built the app using tech X 3 years ago. Founder now viscerally hates tech X and would rather have $5k than keep using that tech.

- (Edit: adding this one) Founder was just learning business when they started this business, and now wants to aim bigger. This business could be a good starting point for someone else in their personal development cycle.

Basically, there are a lot of reasons a founder might sell that have nothing to do with the business or its prospects. There are also reasons that have to do with the business not being a fit for the founder at that time. Due diligence is key when buying anything.

Re: Tiny Acquisitions

#112

Post by 867-5309 »

Scoundreller wrote: post #98
867-5309 wrote: post #93

Earlier quoted context omitted.

I meant visitors would be deterred by the sudden infestation of ads, not that page ranking would decrease. if anything it would probably increase also, how would a search engine visit make money?

Most Sites shows ads through Google AdSense. Most web searches are through Google. Makes sense for them to try and send you to properties where they might make some more money off of you.

ah I thought you meant without ads

Re: Tiny Acquisitions

#113

Post by 867-5309 »

_manifold wrote: post #79
867-5309 wrote: post #57

Earlier quoted context omitted.

I'd imagine hosting would not be resource-heavy so <$2/mo, that's why sites like these don't really need ads as the cost of hosting is negligible. is there any way of generating revenue other than plastering a load of ads onto a website? because doing so would cost a great number of users

I would assume they would be inexpensive to host as well. That's a given. I'm more interested in how much money they can make. Simply running ads doesn't really seem like an issue as long as you're not making the site unusable. I'd be more concerned about the fact that the average user in need of a base64 converter is arguably more likely to be using an adblocker.

those on the first page of search engine results are more likely to command a higher price. I wonder how much time it would take to reconcile the investment with ads, and likely a reduced userbase. probably years

Re: Tiny Acquisitions

#114

Post by IgorPartola »

runako wrote: post #111
alex_g wrote: post #68

If you're interested in buying and/or selling small projects, you can typically expect to pay more than $5k for something that's making any consistent amount of money. You're also unlikely to find a great deal on a really special project on a marketplace. People who post on marketplaces like Flippa or MicroAcquire or SideProjectors (there're dozens of them) have either: 1. Realized the time it takes to maintain is no…

There are a lot of reasonable reasons people would list a sub-scale business on a site like those. Some examples: Take an app that makes $500 net monthly and requires 1-2 hours per week of work. Solid hourly rate, why sell? Except: - Sudden change in family responsibilities leaves founder without the small amount of time needed. - The business might net $5k in a sale, and the founder has an urgent need for cash (for…

I am in that last category myself. I had a really nice and useful budget app that had thousands of daily users and cost all of $20/month to keep going, if that. Was making some money off it too with ads and sales of the ad-free version. Except I built it using Ionic back when it was based on Angular 1. Fast forward to now and that code simply doesn’t compile anymore against modern iOS and Android and I don’t have the time to rebuild it. With some TLC it could have been something but at this point all I’m doing is sending replies to customer emails explaining why the app isn’t available anymore. Lesson learned: JavaScript frameworks ruin lives.

Re: Tiny Acquisitions

#115

Post by Aperocky »

phist_mcgee wrote: post #89
Aperocky wrote: post #52

Earlier quoted context omitted.

Since this is likely my first conscious run in with a website explicitly generated through a no-code platform, I have to say my experience are very negative. The load time is unbearable for something as simple as this.

It could be the hacker news front page traffic slowing the server?

I had a side project game that made it to the front page for half a day and it logged about 28k visits for that day.

Any proven open source database should be able to handle that, sqlite included. It's most likely some form of bloat sitting in the middle slowing everything down. And probably more due to the way the page is generated via 'low code' framework vs. the intention/design of the author.

Re: Tiny Acquisitions

#117

Post by icedchai »

alasdair_ wrote: post #88

Assuming I wanted to buy a few of these, what's the best way to get the cash out at the end of it all? Create an LLC, have the LLC buy the sites, then just do dividends or something? I'm kind of hazy on how to fund such an LLC to buy stuff in the first place - do most people structure the initial money as a loan so it's tax free? I'd love to hear practically-speaking how to do this on a small scale.

The best way to get cash out is to not get cash out. You run "business expenses" through the company: laptops, your internet, cell phone, monitors (maybe you need a really big one, like a TV size.) Get creative. It's like getting a ~40% discount on everything you buy that way, since you're paying with pre-tax money. If you're lucky, you'll have very little profit. Pay yourself a small distribution with some of the remaining cash.

Re: Tiny Acquisitions

#118

Post by rlayton2 »

prawn wrote: post #83
alex_g wrote: post #68

If you're interested in buying and/or selling small projects, you can typically expect to pay more than $5k for something that's making any consistent amount of money. You're also unlikely to find a great deal on a really special project on a marketplace. People who post on marketplaces like Flippa or MicroAcquire or SideProjectors (there're dozens of them) have either: 1. Realized the time it takes to maintain is no…

Or don't have the time. I have/had profitable projects that don't take much time, but they'd be more profitable under someone who isn't spread as thin.

This is why I sold a website making about $150/mo in ad revenue for $5k. I knew the site could make more, but had other things on the go and I couldn't spend the time on the site to improve it.

The person that bought it from me did make those changes and did make more money, but I just didn't have the time to get there. Win-win for me

Re: Tiny Acquisitions

#119

Post by tekstar »

andi999 wrote: post #106
tekstar wrote: post #104

Earlier quoted context omitted.

I have a niche iOS app that makes between $200-400 monthly. I would sell it to someone who would continue to grow it because I would rather build new things than continue to add content to the app.

So what is the valuation? 3000 per year equals for 10 years 30k? (am not going to buy though)

In this specific case I would sell at a lower multiple to someone in the niche community. The amount of money to be made by selling someone who wants to exploit the userbase isn't worth tarnishing my reputation and subsequently shooting future projects within the same niche in the foot.

Re: Tiny Acquisitions

#120

Post by prawn »

rlayton2 wrote: post #118
prawn wrote: post #83

Earlier quoted context omitted.

Or don't have the time. I have/had profitable projects that don't take much time, but they'd be more profitable under someone who isn't spread as thin.

This is why I sold a website making about $150/mo in ad revenue for $5k. I knew the site could make more, but had other things on the go and I couldn't spend the time on the site to improve it. The person that bought it from me did make those changes and did make more money, but I just didn't have the time to get there. Win-win for me

Anyone with time for SEO/content work, general outreach and so on, could definitely capitalise on these opportunities. Many people building these projects don't have the time or interest in the more social side of it.
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