Selling a company/SaaS with 1 customer?

by blockaywhite. Posted on Sep 11, 2020    3    9


Hi all,

I have spent the past two years developing my company, a live streaming youth sports company. I have spent over $60,000 developing the site (hired developers). Our company/product is 100% scalable, able to handle literally thousands of live streams and millions of viewers at once. We offer a unique business model, one that can work well given economy of scale. Ads, PPV, and digital downloads. We have partnered and integrations with major companies in our space, we have an email list of over 10,000 emails, Facebook and Twitter accounts. We have an iOS app. Our site is built on AWS, and has live streaming for pennies a minute.

Problem is, I've learned I am a builder (an excellent project manager), not a marketer/CEO. We have 1 active customer (given we're in IL and IL has banned sports for the fall). However, we have over 250 events broadcasted on our site, and have had a few customers in the past.

I am looking to sell the company or do something with it, to at least make some of my money back on it. COVID has been rough, and need the cash and don't have the time to "wait for it to take off". I've posted it to flippa, have a few watchers, but no bites. Any advice is appreciated. Thank you!


Comments

robothouse77 1

Why not just let it run by itself? Is there a self service component? Can you let it build with a few hours a week while you move on to something else?

mephistophyles 1

Why only one customer? This is a huge red flag in terms of the product you want to sell. Either no one knows about it and can’t find it (best case scenario) or you’ve built a very expensive solution to a problem no one seems to have.

To be very blunt, what are you selling exactly? The product, which we can’t really gauge it’s value, or the company, which is clearly not generating any revenue.

You’ll be hard pressed to find a buyer and it may be better to cut your losses here and move on, whether that’s building something new or joining an existing team that has good product market fit (based on your comment).

Good luck!

MaxPast 1

From my experience, the best chance to sell is either to your direct competitors or to your best affiliates/partners. Even if your competitors are struggling as you are, your affiliates/partners may not because they depend on multiple sources of income. Yes, you will not get much but you will, at least, recover your initial investments for your next venture.

But, taking into account that you have got just a single customer and no affiliate relationships, the only way to go is to look for your competors' affiliates and try to make the sale. I don't know if affiliate marketing works in your niche but if it does, you will easily find some prospective acquirers.

-JoeAnderson 1

Maybe you can pivot? Take what you have and direct it to a different market even though it has many of the same underlying features? You mentioned high-scale streaming; Maybe it can be transformed into an educational streaming site? Something like that?

  blockaywhite 1

That is what I first thought, and tried to do. But YouTube has been the go to for education streaming sites. We have built our product exclusively around sports, which YouTube doesn't quite cut it we've found.

-JoeAnderson 1

Physical sports? E-sports? A single, specific sport?

  blockaywhite 1

All Physical sports, primarily in the high school space.

walston10 2

I looked for you, pretty sure I found you, living in Texas where high school sports are king I think it's a good idea. I don't have the cash anyways but something like this could be really good. My heart breaks for you as the sports are cancelled but even more-so I think facebook live is your biggest enemy here. It looks great, great idea, sorry to hear how much you pumped into it, but best of luck. I know you're over it. To be honest I think the best marketing for whoever takes it would be split income as a fundraiser for the school. 50/50 so each subscriber pays $10 a month, (or whatever) 5 to the school, 5 to the company. The schools will do the marketing for you. (Those that actually have sports.)