Should I sell my AI app for $50k ?

[Jeannen]

Hi!

I received offers for my app, but I'm still hesitating if I should sell it or not.

Here is some background:

I learned to code in May of last year (2022) (full details here). Since then, I released lots of apps, until one started to work well. Without going into too many details, it's related to AI. I launched the app in December 2022, so 3 months ago, and it generated $20,000 of sales so far.

It makes consistent sales ($100-$200/day) fully organic. The profit is around 70%

However, the issue is that the internal reviews are pretty mediocre. Since AI can't generate EXACTLY what people ask, and some don't respect the limitations (I wrote clearly the do/don't but people don't read), the results often end up being just ok. That could definitely be improved in the long run by re-working the app, but I think it's beyond my technical capacities. I'd also like to focus on other businesses.

I decided to list it for $50,000 on a platform acquisition marketplace, and I received a few offers already.

I just wanted to get some opinions from entrepreneurs who've been there before too.

Should I sell it, or keep it as a cashflow source to fund other projects? And is $50,000 too high, too low, or ok?

 

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[circleme]

A track record of only 3 months and you are already getting offers? I would definitely NOT buy that at all (from a buyer perspective) as the earnings and traffic history is quite short.

I'm curious. Can you give some more information about your product?

And btw: A big congrats on your success! I'm in the process of building mine as well and I would be happy for any general information from someone who has made it if you don't mind.

 

[WillHurtDontCare]

Have you vetted the buyers? There are a lot of tire kickers out there, as well as snakes who will try to get you to cough up your intellectual property during their "due diligence."

Have you considered listing it for more? AI is a hot field right now, and you're selling at roughly your annual projected income (.20,000 / 3.5 * 12 * .7 = 48,000). Established SaaS companies sell for 3-4x annual profit, sometimes more.

Obviously there is a lot in the air with the SaaS only being a few months old, so $50K might be solid.

I'd ask yourself these questions:

• Could you hire a machine learning dev from another country to improve the app for you?
• If you sold it for $50K and found out that you could have received much more, would you regret it?
• If you don't sell it and it fizzles out, would you regret having let the $50K pass by?
• How much time are you willing to lose for other projects in an effort to improve your sale price here?

Though, congrats on going from not knowing how to program to having a profitable SaaS in less than a year.