What are some key metrics to determine the value of a FB app, and is it a good time to sell an app that is successful but growth is stagnating?

There are three questions here: - the strike price of the options - the market value of the company - how much those options are actually worth to the recipient 1. The strike price is the price people pay to exchange their options for shares. You can set any strike price you like: it's just a negotiable contract term. However, if the strike price is less than the market value of the shares, the options are taxable (which people tend to avoid), so you typically set the strike price at or above the market value. 2. The market value of the company is how much the company is worth. The celebrity of the founder is clearly a big part of it. If the company were sold, the acquirer would want the founder to lock in as part of the acquisition. So figure out the value a couple of ways: (1) off standard profitability metrics: X times yearly profit and/or revenue vs. comparable companies (2) off the acquisition price: with and without the founder and add the percentage chance the founder would go with it (3) off recent transactions in the stock (what people pay for the stock is a great indicator of value) These will give three different answers: pick some sort of average number, so you can justify your strike price. 3. What the options are worth to the recipient: remember they are only worth something if the recipient can exercise them for stock, and then sell the stock (or receive dividends) for more than the option's strike price. So figure out the probability of the company being sold above the strike price in the next X years, and what an weighted average expected sale price is for the company in the next few years (noting the founder's importance), and that's what the options are worth. I hope that helps.

I think Facebook is great for really targeting your audience and you’re on the right track. But I think you can have a better funnel than that. I find, for getting better conversion today, it is better to get your Facebook traffic off of Facebook as fast as you can to your offer and into your funnel. It is more effective for driving actual sales. If you’re just looking for social branding etc. then your funnel might be ok. A very effect strategy is to create either a video or report that you give away to your audience in exchange for an email. It should be something that helps solve or bring to light the problems patients are suffering from and how to go about solving them. Then mention how having a great Chiropractor can solve all of that and can be the most effective way to get ride of the pain. I would also have some things in there that would help them in other ways. Then I would send them to an event or webinar with your top Chiropractor and you in an interview / reveal-all type webinar to educate your lead and manage their fears of going to a Chiropractor. You could tell them that the first step is making an appointment for an assessment. You should make it easy for them to find the best and most effective Chiropractor in their area. You might have a discount on the assessment only available to them for being on the webinar to get them to sign up at the end of the webinar. By the way, once this is recorded, you can make this evergreen so you don't have to do a webinar all the time. As long as you are reaching more and new people with your Facebook campaign you won’t have to change the video all the time.

Once you have people signed up to make an appointment, make sure they are also putting a deposit of a 100 dollars or something down. This will increase your show rate for the Chiropractors. Then give them a voucher for that Chiropractor, for more than you’re asking for at the deposit for services, to use with that Chiropractor. Allowing you to prevent cancelations etc. so that their getting their money back in the form of a voucher for services which, by the way, is not a discount and shouldn’t diminishing your Chiropractors Rates. This strategy I have used in several markets that has produced more prequalified leads and patients / customers. Remember to test, track and know your metrics. You’re going to need to make some tweaks in the beginning, but this can be very effective for you. So to recap: 1. Setup a landing page with your offer in exchange for an offer. You can build this in software like Leadpages.net or Megaphoneapp.com 2. Make your offer downloadable if an ebook or white paper or present your video after. I recommend using Wistia instead of YouTube for playback as you will be able to have heat maps of your video to know where your fall off points are. You can also make this page with the software mentioned above. 3. Use an email autoresponder to engage your lead and email them about the event you’re doing after they had time to read or download your materials. Or, if a video, I would just pitch them at the end with a link below the video to automatically register. 4. Put on a webinar with your guest using either GoToWebinar or Google hangouts if you know how to set that up. 5. Make sure you have your appointment getting page with your the down payment created. You can use several different type of scheduling services so you can automatically deliver the lead/ appointment to the chiropractor. To Note: The reason I don’t send the visitor to the webinar first is because it is better to get the visitor predisposed to your information before asking them to commit to a webinar and when you do it the way I played out, you will have a much better show rate. This is it in a nutshell. Obviously there is more to it. If you need another funnel idea I am hear to help. I have used other effective strategies in the past to also make money on the front end to make your advertising free. It just depends on what you want to do and how advanced you want to get. Hope this helps give you some ideas. :) If you need help implementing something like this just let me know.

There are different ways that you can make a profit from a Facebook group. The key is to understand your audience and know what type of services/products they would be interested in. You can charge businesses or companies that are looking to target that specific audience a flat fee and post their products/services on their behalf. You can add affiliate links for products or services that are relevant to your audience and earn commissions on the sales/leads generated from those links. You can sell advertising on a CPC basis. Etc...

"Based on the success we are able to achieve" suggests, to me, you are looking at a price that will be tagged to an earn out provision. In other words, the price of the deal will be contingent on you achieving specific revenue targets in the future. If I'm reading this wrong, please correct me because it's an important piece of information. Early stage startup typically suggests a focus on revenue growth with minimal focus on earnings. The most valuable acquisitions will be those that have growth in the top quartile of the industry along with an EBITDA that is also in the top quartile. Companies with these will have the highest multiples. Revenue multiples are also a function of the industry and the general character of the market. Currently, the IPO markets are doing pretty well and the overall M&A market appears to be pretty solid making multiples equally solid. In terms of industry, the media publishing industry has moderate to slow growth depending on the segment. I'm assuming there is a social or online component to your startup which would suggest that it would be part of the new growth side of the market. Generally speaking, market growth averages are at about 8% for larger companies suggesting that new entrants should be able to sustain low to mid double digit growth over a longer horizon. "Growth rates", i.e. percentages, can be meaningless for very small companies. For instance, a company that grows from $25,000 to $250,000 in a year has a massive growth rate..... but the value may be very low due to lack of track record and overall profitability. As such, it can be very hard to estimate multiples. That said, if I were putting forth a hypothetical, it would be something like the following: Assuming: The company has over $1M in revenue and is growing at an average of 12 - 15% per year. Assuming: The company is profitable, but barely, say something in the 10% EBITDA range. Assuming: The company is a service company with few assets but is not subject to significant brain drain (key people leaving would result in devaluing the company). If any of the above are wrong, it can change things significantly. Revenue multiples might be in the 0.7 - 1.15x revenue on forward looking and .9 - 1.25 on a trailing level. EBITDA Multiples could be in the 8 - 10 times on a forward looking and 10 - 12 times on a trailing level. Take it with a grain of salt because there are a lot of factors you don't mention and more information is important to make a meaningful diagnosis.

It can certainly be tough to build up a substantial follower base, starting from nothing or very little, especially if you haven't launched your product yet. But here are a few tactics to help you get in front of more people pre-launch: 1) Start sharing tons of useful content. Before you bother sending people to your Twitter feed or Facebook page, you want to make sure they'll find something valuable once they get there. If you have the time, create original content that ties into your industry, your product, or your company in some way (without directly promoting yourself, though). If you don't have the bandwidth to create your own content, find other articles from bloggers you admire or experts in your industry, and share their content. Just make sure you're putting out information that's highly relevant and valuable to the audience you're trying to attract so you can engage them once they find you. 2) Create conversation. The people who aren't following you yet aren't seeing your tweets, so how do you show them value and get them to discover you? Start a conversation! At Change Collective, we're rolling out our first course on Becoming an Early Riser. So I'll do a Twitter search for "need to wake up earlier" and find a bunch of people who are tweeting about the exact problem we're setting out to solve. By favoriting their tweets or replying with -- "That's great! We think we can help - check out our newest course & let us know what you think!" -- I'm getting our product on their radar and simultaneously providing value to them. 3) Ask for help. Start with your fellow team members, and ask them to share the company's Facebook posts or retweet some of your tweets. You can even create lazy tweets for them to share. What about your board members? Advisors? VCs? They all have a stake in helping your company grow awareness and adoption, so find an easy and appropriate way for them to help by leveraging their networks. And if you have friends and family who are excited about your business and supportive of what you're doing, they probably won't mind a friendly request to help spread the news every once in a while. Hope this helps! I just joined an early-stage startup and I'm currently building up our marketing from scratch. Happy to jump on a call and offer some tips from the trenches if you'd like. Best of luck!