SaaS due diligence: Instafeed API

Drew Bredvick, β€’ deal-memosfinanceside-projects
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I've recently become more and more interested in acquiring small side projects, repositioning their marketing, tweaking pricing, and developing additional features if needed.

This approach is inspired by quite a few people:

Why take this approach?

Building isn't the most important part. While this isn't always true (building rockets that go to Mars is very hard and the engineering is definitely the most important part), it's largely true in the SaaS world.

Instafeed API – a no code solution for creating an Instagram feed

Asking price: 3k

Where I found it: MicroAcquire

MicroAcquire - Startup acquisition marketplace

Creator: https://twitter.com/mddanishyusuf

What this project gets right

Room for growth

Downsides

Tech diligence

BuiltWith: https://builtwith.com/instafeedapi.com

The tech stack uses tech I'm familiar with:

I signed up for an account and tested out the product a bit.

Findings:

Remaining questions:

Costs

Final verdict

Is it worth 3k? Probably. With the traffic dependencies on the current owner's blog post & personal brand, I'd be sure to add in the contract details about the posts staying up (YT vid as well).

There's room to change how this pricing works (per site instead of volume-based), remove the free tier and switch to free trial, and add some widgets to grow in different marketplaces.

If you're familiar with the tech stack, these things shouldn't be difficult. Where the biggest investment will be is in building out plugins for marketplace exposure.

Can this be a great business?

It's definitely possible, but it's going to take a little development.

Am I going to put in an offer?

Not this time. I think the project is great, but lives a little bit outside of my interests. If I had experience building plugins and could think of a durable marketing channel for acquiring new customers I think I would pull the trigger.

Who is this for?

I think this is a good opportunity for a developer who:

By changing the pricing model, creating plugins and integrations (Wordpress, Shopify, Webflow), and doing a little SEO / content marketing you could have a good business on your hands.

Questions? Let’s discuss on Twitter.

Β© Drew Bredvick.RSS