Your asking price is one of the most important decisions you'll make as a seller. Price too high and you'll get little interest; price too low and you'll undervalue your work. Here's how to get it right.
How Startups Are Typically Valued
Most startups on our marketplace are valued using a revenue multiple:
- SaaS businesses: 2–8x ARR (annual recurring revenue), depending on growth rate and churn
- Content / newsletter businesses: 24–40x monthly net profit
- Productised services: 1.5–3x ARR
- E-commerce: 2–4x annual net profit (SDE)
These are ranges, not guarantees. Your actual multiple depends on growth trajectory, churn, customer concentration, technical debt, and market conditions.
Factors That Increase Your Multiple
- High year-over-year revenue growth (30%+)
- Low churn (under 3% monthly for SaaS)
- Diversified customer base (no single customer over 10% of revenue)
- Strong documentation and clean financials
- A business that can operate without the founder
Factors That Decrease Your Multiple
- Declining revenue or stagnant growth
- High churn or customer concentration
- Heavy founder dependency
- Technical debt or poor documentation
- Unresolved legal or IP issues
Research Before You List
Look at comparable listings and recent sales on the platform. What are similar businesses asking for? What are they actually selling for? This gives you a realistic baseline.
How Much Negotiation Room to Build In
Most buyers will negotiate. A 10–20% buffer above your minimum acceptable price is standard. If your true floor is $400K, listing at $440K–$480K is reasonable. Going higher than 25% above your floor typically reduces enquiry volume significantly.
Should I List "Open to Offers"?
Some sellers choose to list without a fixed price and invite offers. This can work well for unique businesses where comparables are limited, but it can also attract low-ball offers. In most cases, setting a clear asking price is more effective.
Can I Change My Price After Listing?
Yes — you can update your asking price at any time from your listing dashboard. If you reduce the price, buyers who have shown interest will be notified.