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It seems to make sense to run the numbers here: 8 million sold $1 apps, less 30% to app stores, that's $5.6m. If all 17 people on the about page took $100k sal
by mseebach 14y ago
It seems to make sense to run the numbers here:
8 million sold $1 apps, less 30% to app stores, that's $5.6m. If all 17 people on the about page took $100k salaries for the full two years (which they probably haven't, they've likely grown to this size from a lower number over the two years), that leaves $2.2m for running costs and profit. Besides that, they have 7 other apps in their portfolio which must be expected to provide some revenue.
In other words, what would they possibly do with more cash?
- lemming 14y ago$2.2MM is probably peanuts compared to what they would have made in an acquisition, you'd have to figure that any acquisition price would be far north of $8MM. I'm perversely glad they didn't take it, it's great to see people really dedicated to actually starting a viable business, but frankly I'm surprised. I'd like to think I'd make the same choice but I'm not sure, especially if I were the founder. Still, kudos to them.
- mseebach 14y agoSee the chart here: http://blog.asmartbear.com/wp-content/ss-images/lifestyle-versus-cash-in-bank.png http://blog.asmartbear.com/wp-content/ss-images/lifestyle-ve... from http://blog.asmartbear.com/rich-vs-king-sold-company.html http://blog.asmartbear.com/rich-vs-king-sold-company.html
- switz 14y agoLet's not forget that these are the guys behind MacHeist and plenty of VERY successful apps. They've turned their loyal MacHeist users into a social marketing platform for their apps. They have plenty of capital.
- phil 14y agoCamera+ has not always been $0.99, and it has in-app purchases. A revenue estimate that doesn't take those into account is going to be way off.
- bignoggins 14y agoif you count IAP, it's probably double that, just based on my own experience with paid apps and IAP.