Assuming you currently own 50% of the business, then a $5k buyout imputes a $10k valuation on the business. That's less than 1x your annual revenue which seems extremely low.
If you no longer want to work on the business, I agree it's fair to your co-founder to sell your share (or at least the majority of it) but it should be for a more reasonable valuation IMO.
A 3x annual revenue multiple for 100% of the business is a typical valuation, if you have decent profit margins and the site doesn't require on-going work to keep running as-is.
So that would be a valuation of $54k or $27k for your half. Let's call it $25k to simplify.
Rather than your co-founder having to pay it all upfront (which would be quite risky as perhaps the revenue implodes, etc), you can structure it such that you continue to get X percent of the revenue (maybe even 100%) until you've received the $25k.
Whether it's $25k or something isn't just an accounting matter, but also subjectively what seems fair.
If you're basically "walking out" of the business and leaving your co-founder hanging, then maybe it's fair for you to walk away with less than 50%. Many companies have a vesting clause built-in for this.
On the other hand, you derisking the buy-out by having it done through revenue-based payouts might already make up for the fact that you're moving on.
One final thing to consider is that you'll need to make it worth it to your co-founder to continue. If your demands are too high, it's likely they won't want to continue either and you're both left with a dying business and no payout.
Thanks Marc. Appreciate your response! I have to think about it maybe 5k is indeed not that much. I have to take into account that the code base is bad and he has to find someone to continue with. It has a lot of potential but it takes a lot of development time.
Looks like you're hotlinking to some images hosted on googleusercontent.com that don't load for us. Possibly, because they hosted behind a login?
Did you copy/paste them from Google Docs or Gmail or something like that? It didn't actually copy/paste the image, but just the URL. Which we cannot access.
If you download the image to your computer first and then add them to your post, they should upload to our servers where they are visible to everyone.
Welcome Wassim! The 12 projects in 12 months approach is a great way to find something with product/market fit 🙌
Hi yes. Been meaning to reply. The current way is like you do. Create the todo on the homepage and then check the checkbox.
I agree it's a bit annoying and counter intuitive. The vast majority of todos on WIP are immediately completed and never in a pending state. So I will change it such that the checkbox is already visible when creating the todo + automaticlaly check if by default for you.
Oh that's a really interesting idea!
I've been wanting to build a "share your Stripe numbers" product since before it was cool, but never found a good model.
Some mechanic where a user can unlock it seems really interesting.
Have you seen home.omg.lol yet? I signed up for a 10-year account recently because the app works well, and it was $50 ($5/year).
I point it out to you because it does an amazing amount of community building as add-on value which I think is brilliant. Not sure how many of these are relevant to WIP, but I bet reading their offerings might give you some ideas.
Hi Luke, I never formally welcomed you here so here it goes: welcome to WIP :)
Mused seems really cool and your signup numbers confirm it.
For those server costs, have you reached out to your hosting provider to see if they are willing to sponsor you? Or perhaps some other hosting providers? Your tech is really cool, so I can imagine a forward-looking provider would want to be associated with it. Even if NeRF tech you use isn't directly related to their products.
For long-term monetization, it's hard to predict what would work. I think it's a matter of trying a bunch of things. Try to get into a routine of trying one new monetization approach every week or so. Put yourself out there in different fields to increase your "luck surface". Create a bunch of different applications for Muse and share them on relevant sites.
Also make it easy for someone that sees your work, to reach out and share feedback with you. This could lead to new ideas you haven't thought of yet.
I'd also follow up with some of the press that already covered you. I could totally see National Graphic become a customer for example.
Hey Marc, thanks again for the invite, and great idea on testing a new version every week. I'll start doing that. I've never had subscription revenue before, so it's important learning from everyone here.
I'm on Google Cloud Platform right now, and they sponsored me 2,000 USD but will sponsor 200,000 USD if I get venture funded... which I was kind of torn about because it would pay for a lot of GPUs. Azure has a similar program I was testing out.
Great idea about Natgeo too.. I'll reach out to them.
It seems like virtual tourism is hit- or content-focused right now so have been testing out nerfs to try to differentiate to help other creators instead.