Re:Show HN: I bought a SaaS and am modernizing it
by ElCapitanMarkla on Tuesday October 06, 2020 @06:18AM
(#24696269)
Nice work. Are you able to give some ball park figures around what this sort of thing has cost / yearly revenue for the site? e.g. are we talking low 10s, high 10s, 100s, millions...
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Re:Show HN: I bought a SaaS and am modernizing it
by nathanstitt on Tuesday October 06, 2020 @09:20AM
(#24697371)
Definitely not millions, more like mid 10s :-D
A good rule of thumb for valuing a SaaS is to take trailing 12 months revenue and multiply by 2-5 depending on the growth potential of the the business.
In this case it was at the bottom end of that scale due to signups having slowed to a trickle.
I valued it a bit more since it has a huge list of past customers. My hope is that once the updates are completed I can convince at least some of the to resume subscribing by a tasty "6 month free" type offer.