Nano Thought

Hey y'all!

I've been thinking a lot about valuations lately, especially in the SaaS space. There's this interesting disconnect happening in the market - founders are still anchoring their valuations to development costs while buyers are laser-focused on traction and growth potential.

Dev costs are going to almost $0 with AI, dont forget that. We want to buy product market fit...not code.

Let me be real with you - I've been on both sides of this equation. Just a few months ago, I bought a SaaS that needed some love. Instead of obsessing over what it cost to build, I focused on what I could do with it.

Which brings me to something pretty exciting that happened this week...

We just landed our first organic search customer for that SaaS! I know, I know - it's just $83. But here's the wild thing - I was more excited about this $83 than some of the million-dollar deals I've done.

Why? Because it validates everything we've been quietly working on in the background. It's proof that our SEO strategy is starting to work, right before our big relaunch next week.

Sometimes it's these small wins that remind us why we do what we do.

Speaking of which...

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We like to keep it simple - great content + fantastic strong backlinks = ranking and free traffic from Google.

Here are some results for a couple of our current clients:

We are a small team - and I like to keep it that way.

It allows me to have a personal relationship with every client we have.

​Book a call here to chat​

This Weeks Opportunities

Let's talk about a listing I saw this week that perfectly illustrates what NOT to focus on when valuing a business:

🎉 (Not linking to listing, as I don't want to hurt the seller)

SaaS Startup: AI Content Publishing Tool

• Asking Price: $16.5k
• Location: United States
• TTM Revenue: $2k
• Last Month's Revenue: $268
• Multiple: 16.5x profit / 8.7x revenue

Here's why this listing caught my attention - but not in a good way. The seller is justifying their valuation based on "asset/development cost and dual market capabilities." But here's the thing - at this scale, development costs are irrelevant.

What actually matters:

• Current traction (which is minimal)
• Growth trajectory (seems flat)
• Market validation (limited so far)
• Improvement potential (the only real bright spot)

This is a perfect example of focusing on the wrong metrics. When you're buying a business at this size, you're not buying the cost of development - you're buying its potential and validated market fit.

I see this mistake all the time - founders thinking their valuation should be based on what they spent building the product.

But the market doesn't care about your costs. It cares about results.

Think about it - would you rather buy a business that cost $100k to build but makes $200/month, or one that cost $10k to build but makes $2k/month with growing demand?

I know which one I'd choose.​
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As always...do your own due diligence, the above is based off of what we see as an opportunity from the info provided in the listing and some light due diligence, not a deep dive. It just one of many scenarios that could play out and its up to you to do your own due diligence and see if this makes sense for you!

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​Thought Leader Theater

Had a blast this week being a guest on The Koerner Office podcast! We dove deep into building successful AI businesses without coding experience in Episode #117.

Check it out on

​Spotify​

​Apple​

And give me a follow on IG

James: https://www.instagram.com/thejamescamp/​

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Thanks y'all; see ya soon!

(James)

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P.S.

We're opening up a limited number of 1:1 advisory spots for February.

If you're looking to buy, grow, or sell an internet business and want personalized guidance, reply to this email with "February Advisory" and we'll connect you with an advisor to chat about your goals.

These spots typically fill up fast, so don't wait!

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All investment strategies and investments involve the risk of loss. Nothing contained in this newsletter should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit. Some of the links in this email may or may not be paid placements in which we are paid by advertisers for placing.