I turned down a $40,000 cash offer. Here is how and why.
My 6-month-old project ($322 MRR) was offered $40k.
Good morning/afternoon/evening, everyone!
It’s Tony Dinh here 👋
This is not a typical monthly update. Today, I just want to share a short story that happened this month.
Please let me know if you enjoy/hate ad-hoc update emails like this, I really want to hear your opinion so I can adjust the newsletter plan going forward! 😊
I turned down a $40k offer to buy my 6-month-old project
Here is how and why:
Six months ago…
…I launched BlackMagic.so. It's a Twitter SaaS that helps people do fun stuff with their Twitter profile picture and banner.
I only make $322 MRR from it at that time, but it's a really fun project for me and has helped me grow my Twitter audience tremendously (from 1k to 10k followers).
Last month, I received an offer…
…to buy 100% ownership of BlackMagic.so at $40k from a buyer on Micro Acquire. That's more than x10 annual revenue!
Below is the breakdown of "100% ownership":
Codebase and IP
Website, brand, domain name
Newsletter with 5,147+ subscribers
Twitter account with 800+ followers
AWS Account (with $5,000 credits)
$40k is a lot to me. Living in Vietnam, it's enough to cover my living cost for a good number of years!
It seems like a very good deal, so why didn't I accept the offer?
Here are my reasons:
1. I don't really-really-really need the cash right now
Before I quit my job, I had piled up a good amount of saving enough for me to live without any income for 2+ years (even more after I moved back to Vietnam).
Considering I get to keep ~$30k from the deal after tax and costs, it's not a life-changing amount for me. Sure, I have some more breathing room for my indie hacking journey, but it's not quite that significant.
2. I still have so much love and plans for the product
My to-do list for Black Magic is long, and I'm nowhere finished. There are so many things I want to do to provide value for my followers and customers via Black Magic.
The project has helped me grow my Twitter account from 1k → 10k followers, and I believe it can help me grow from 10k → 100k soon.
I also believe I can grow the product to 2-3k MRR within the next year or two. I feel it is way too early to sell at this point.
3. Other reasons
The two above are the main reasons I didn't sell, but there are some other smaller reasons:
The buyer's plan to grow the product isn't ideal for me.
I don't want my customers to feel "betrayed". Many of them use the product just because I'm the one behind it.
I have not yet sure which project I will move on to after I sell BlackMagic.
So yeah, that's why.
Is it the right decision?
Only time can answer.
Thanks for reading, and have a good productive week ahead!
I'm back to building now.
See you next time 👊