Why pricing side projects is hard
Side projects lack the clear valuation frameworks of established businesses. Revenue multiples work for profitable SaaS but not pre-revenue projects. Comparable sales data is limited. Emotional attachment distorts judgment. Buyers and sellers often have wildly different value perceptions. Getting pricing right requires honest assessment.
Framework for realistic pricing
Start with recreation cost: what would a buyer spend to build this from scratch? Factor in time, expertise, tools, and trial-and-error. Add value for existing assets like domains, users, and brand recognition. Subtract for known limitations and required work. Compare to similar sales. Arrive at a range and explain your logic.
Common pricing mistakes
Avoid these errors: pricing based on time invested rather than buyer value, using arbitrary round numbers without logic, ignoring comparable sales, overpricing based on potential, failing to account for required work, and not explaining how you arrived at your price. Each of these reduces buyer confidence and can prevent sales.
When to price lower or higher
Price lower when: you need to sell quickly, proof is limited, the asset needs significant work, or comparable sales suggest lower values. Price higher when: you have strong proof, unique assets hard to recreate, existing revenue or users, and time to wait for the right buyer. Be honest about which category you fall into.
Showing your pricing logic
Include a pricing rationale in your listing. Explain what components are included, what comparable assets have sold for, what a buyer saves versus building, and what assumptions you made. Transparency reduces negotiation friction and builds trust with serious buyers.