Someone called me a tech millionaire, and I got all snippy, but then I realized that I have no idea how to value Pinboard. Do I just, like, multiply earnings by something? Is it the craigslist value of the servers? How do you value a tiny tech business?
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(For those curious, the site makes about $190K/year in revenue, has 25k active users, has costs of about $38k, mostly fees and colocation, and I'm not looking to sell it. Rather, I am biding my time to buy out everybody else)
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Replying to @joshu
I see it as a source of income, so the sale price would have to be whatever principal was enough to generate that income in perpetuity
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Replying to @Pinboard
Yes, but you also have to pay a premium to decrease risk. 30 year treasuries are paying 2% right now. But will continue to pay that without effort for 30 years. Whereas yours may grow or may die depending on the effort put in. So you would have to price it as:
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the revenue stream plus the labor. generally companies are worth 5x revenue, plus or minus.
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Thank you, this is helpful and in line with other answers
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