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Ask HN: How to value small side projects? Can you sell them?

9 points by vonklaus ↗ HN
How can you value a side project or a small website you have built. I am working on a few things right now, and while I have the stupid and naive attitude of "fuck money", I can't really use my cellphone because creditors call it on a schedule I personally would consider "aggressive".

At some point I am going to have to sell something so that I can afford to keep working on what I want. I am not talking about a million dollar exit or some angel round. I am talking about getting a project or piece of software or website to the point where I can sell it, and how to attach or appraise a rational value to it.

I am looking to build something (or possibly if I can bear it sell something I have already built) for ~$1000 - ~$10k. Are these kinds of sales possible or likely?

* where could you list something like this?

* does it have to have users, or just be functional software?

* how could you sell something, if you had to do it, and where would you list it?

9 comments

[ 2.2 ms ] story [ 43.8 ms ] thread
dangrossman
For sales in that price range, Flippa is the most active marketplace. The most straightforward path to a $10K sale is to show $500-1000 in monthly revenue. You want to show that there's a business there, that a buyer can potentially see a return on their purchase within 1-2 years. If your side project has no users, or isn't functional software, then it's probably not worth buying to anyone else.

https://flippa.com/

vonklaus
ok thanks for the link. By no users I mean something that is a product with no network benefits. Maybe tool to build PDF documents using phantom, an invoice generator and email tool, etc.

Something simple that is useful, but isn't exactly going to put you on the Forbes 30 under 30 list. Will checkout Flippa, couldn't remember the site name.

cheers.

Mz
creditors call ... on a schedule I personally would consider "aggressive".

Let me suggest you go to a library and pick up a copy of "How to get out of debt, stay out of debt, and live prosperously." Also "How to survive without a salary" is an excellent book.

You might also enjoy reading this:

http://micheleincalifornia.blogspot.com/2014/02/money-and-ma...

Best of luck.

vonklaus
I read your article, best of luck. Pretty interesting, I considered doing this and have the luxury of even getting to make that choice. Obviously, living with my parents at 26 is pretty shitty, but at least I can write code, keep warm and freelance a bit. Cheers.
Mz
My article contains substantial links towards the bottom. I suggest you read them all. You pretty obviously need a financial education.
sideproject
Hello. I run SideProjectors

http://sideprojectors.com

It's a place where people sell & buy side projects (exactly what you're talking about).

Have a look through the projects that have been listed and hopefully you'll arrive at answers to the questions that you asked above. Happy to answer any questions too! :)

vonklaus
awesome thanks. Actually, super interesting because you really never hear about this space.

* What kinds of companies/software is selling the most?

* What is the average size deal?

* How long does it take a companu to sell (let's assume it is an average sized deal and in one of the competitve spaces)?

* Do you think it is possible to make a small project a month and sell it on your site?

sideproject
All kinds! I'm not sure if I can answer that properly. But I found that sometimes it follows the trend. A few weeks ago, "Deep Learning" was a hot topic (well it probably still is) and immediately following that we had a side project on Deep Learning. :)

Average size deal I think is between $1000 to $5000. But again, it depends how the seller prices it. Many times the price is settled behind the scene. We just cater the meeting between the seller and buyer.

3rd question is also hard to figure out. Some side projects (obviously) never get sold. A few users were disappointed that their projects didn't get sold. But what can I do? (I suppose I can bring more people...) But there have been quite a few projects that got sold literally within days after posting.

By all means! You can sell any side projects. It depends on the people and what they want. And what do they want? We just don't know. :) Try it out by posting something and gauge their interest.

kkoppenhaver
Hey there,

I've been looking into buying these kinds of sites for awhile now and haven't really found anything interesting up to this point.

For me as a developer, I would love to find something that's bringing in a decent amount of revenue, but needed some process upgrades (either technical or business processes).

I got sent a site the other day that was doing about $1k/mo but all the sales were one time, there was little to no SEO work, and their email list was dormant.

This is the kind of thing that I could see being able to have a direct impact on.

Just for me personally, I would value a prototype with users more highly that simply built out software. If a piece of software has proven that it can acquire customers and that the idea has at least a bit of traction, I know I can take the prototype and improve on that if necessary.

TL;DR That's right in my price range, and I would definitely buy something for the right multiple with a non-trivial number of users and a reasonably proven strategy of customer acquisition. So, yes I would say those sales are possible. If you have something you're looking to sell, shoot me an email. (email is in my profile)