You know, most people are completely deluded on what something they own is worth.
I've seen people list software that has NOTHING going for it. No traffic, no revenue, no users. Would take 2-3 days to build from scratch, asking $30k.
In the past I allowed those listings on, but now I'm more vigilant about screening those out. But still, most listings will start at a high asking price. Because sellers are biased towards their own sale, sometimes, rightfully so.
My advice to buyers is, just ignore the price tag.
Do your own math. What is it worth to you?
Figure out your min-max range.
Send in your offer. Takes 10 minutes.
Here's a template you can use:
I saw X on Borderline. I think you've built something really great!
I'd like to continue to work on it and scale it up.
Given the revenue, I can offer a 4x multiple at $12k. (contingent on going through the code, analytics, etc)
I know this is lower than your asking, so I understand if you're not interested in selling at this price.
However, I just wanted to send in the offer and see if you'd be willing to potentially discuss a sale closer to my price.
Here's what happens to most sellers.
They get ZERO interest.
Nothing, at all.
So when you send in a REAL offer, that is legitimate interest, at a realistic price, the seller WILL take it seriously. Even if it's significantly lower than their asking.
The reason is simple. The seller doesn't set the price, the market does.
YOU ARE THE MARKET.
If you say something is worth $10k, and there is no one else to out-bid you, it's worth $10k.
If you say something is worth $10k, and another investor is willing to buy at $50k, it's worth $50k.
If you say something is worth $10k, and the seller decides not to sell, they are personally deciding to out-bid you and buying it back from the market at over $10k.
So what have we learned?
The market decides what something is worth. You, the seller, and other buyers make up the market.
If you see an outrageous price, send in your offer. The only other bidder in most cases is the seller themselves.
And usually, not selling a project has consequences. You've got to pay for server costs, fix bugs, give up headspace and take time away from your family and other projects. There are many reasons to sell a project, even at a bargain price.
So, if you think something is interesting, and potentially worth buying. Send in your offer. Even if it's lower than ask.
Preferably, don't be too aggressive and send in extremely low offers, just be reasonable and send in a fair offer that would make sense for everyone involved.
Good luck with your next buy!
Thanks for reading!