If I was a potential buyer I'd see someone selling a site just 4 days after launch as a big red flag. Was the developer's confidence in it's potential so low that they chose to take a sum equivalent to 4 months' salaray (assuming they're not 16) rather than ride the wave?
On the other hand, maybe they're on to something - repeatedly build sites with cool design, get a mention on Tech Crunch, and flip.
In the last comment on the Sitepoint auction, the creator mentions that he earned $30 from Google ads. While this is during (probably) a peak in traffic due to all the buzz around his site, let's assume he averages $50/day from Google ads. Unless he comes up with a solid revenue model, gets some sponsors or his site takes off even more, he'd be making around $1500/month.
Selling for $25,000, on the other hand, could allow him to invest in another more promising idea. All that aside, I'm still not sure if I'd do what he has done.
While I think InviteShare provides a useful service and could gather a community, I think it would be difficult for someone to easily make a full-time business out of it on its own.
$25,000 for what likely could have been a handful of days work is an excellent payout, and possibly a great way to fund their next startup ;]
"Could be done in a handful of days" is the stock response to web applications these days. On one hand its mostly true (its easy to get the majority of functionality working), but its also a bit of bravado: raw functionality and a polished product are not really equivalent.
Well said. I was just pondering this the other day - how did did I manage to get really cool/hard coding projects (AI, systems, etc.) done in school in just under a week while it takes many months to get a decent web application built. I realized that it's because the things you build in school are prototypes that deal with very specific use cases, while web apps require you take care of lots and lots of details so that ordinary people could use them.
Please don't reply saying "maybe you should consider Ruby on Rails" because that's not the point of my comment :)
Come to think, this "scenario" seems like a good idea rather than going through YCombinator.
Think about it. Find something easy to implement (shouldn't be more than 1.5 months effort) and target it to TechCrunch audience. Flip the site for $25k - $30k and embark to your ultimate goal.
Now you don't have to share 6% - 10% of your company to YCombinator (or other similar companies)
This may be true, but the guy who applies to YC with $25k already in the bank and the experience of having sold a 'startup' after less than 2 weeks of launching, will surely have some kind of advantage over other applicants; No?
We had $16,000 in the bank when we accepted YC funding and were already selling product.
Nonetheless, it was 5% of equity well-spent. I couldn't hire pg, tlb, or Jessica for any amount of money. But when I let them give me $15k, they became part-time employees for three months. Pretty cool deal, I think. But, hey, if you already know where you're going and how to get there...and you just need a few thousand dollars to do it, skip YC. It's not right for you.
Having a bit of reserves in the bank before applying / getting into YC seems like it'd be a major help.
Although it appears that many YC startups haven't had any trouble getting angel funding after their initial funding runs out. Just traditionally it can take many months to raise funding (while being distracted from making the product better), no?
I've thought about that too but you have to realize that while you're not giving up 2-10%, you also miss out on the connections you could have made with other entrepreneurs, potential cofounders and investors.
Now if you could raise $25-$30k AND take advantage of YCombinator's resources, that sounds like a plan.
On the other hand, maybe they're on to something - repeatedly build sites with cool design, get a mention on Tech Crunch, and flip.