dude said they had 92k downloads (i'm assuming at 99 cents). lets round up to 100k.

apple and google taking 30 cents on each dollar. so that meant they had 100k revenues - 30k to apple and google = 70k.

so they are at about 3x gross annual revenue on valuation or 4x if they're counting what they got back after apple and google's cut.

i think their valuation is a little low and suspect that they were moreso going after sharktank for the national publicity. (but even getting on shark tank and not doing a deal means you got to give up 5% of your company).

40k for effectively 20% of your company seems pretty high, unless they parlay this appearance into a LOT of coverage. but its on yahoo, etc., so it may have ended up as a very effective ad buy.

>https://www.youtube.com/watch?v=OhRzdqmuMGg
>
>Homey valued his company at $266,666? Aren't these kind of
>companies worth millions?
>
>And why only 99 cent for the app? He should've made the buggy
>version with the ads only 99 cents. And offered the premium
>version for 5 bucks. A college student who's interested in
>saving thousands should have 5 bucks to spare.

the overall market (full time college students w/ smartphones) is around 18 million. better to go for maximum market share than get a smaller percentage of folks willing to pay more.

at 99 cents, at worst, it's a novelty. ppl will be pissed if they pay $5 and don't get a scholarship.

i don't know the demographics o how many students qualify for the type of scholarships they are marketing.




peace & blessings,

x.

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I'm an advocate for working smarter, not harder. If you just
focus on working hard you end up making someone else rich and
not having much to show for it. (c) mad