Platform Roll-up Strategy

A strategy of acquiring and combining small, profitable apps and plugins across various established platforms to build significant revenue streams.

Key Platforms for Roll-up Opportunities

• Shopify plugins

  • Friend's company exclusively buys Shopify plugins
  • Publicly traded on Canadian exchange (~$600M market cap)

• Enterprise Software Platforms

  • Salesforce plugins
  • Zoho plugins (similar user base to Salesforce)
  • Slack integrations

• Gaming Platforms

  • Platforms like Fortnite, Minecraft, Roblox
  • In-game experiences and mods
  • Currently selling for low multiples (often less than 1x revenue)

Financial Metrics

• Revenue potential

  • Individual apps making $50-100k per month
  • Potential to build $10-20M revenue company through acquisitions
  • Can be highly profitable

• Acquisition economics

  • Often selling for low multiples
  • Prefer 9-month payback period vs 3-year
  • Can leverage cheap debt for acquisitions

Key Risks

• Platform dependency
  • Single platform risk
  • Platform can change direction/rules
  • Algorithm changes can affect visibility
  • Platform could become hostile competitor

Strategy Implementation

• Focus on established platforms with large user bases
• Look for simple, profitable apps
• Use cheap debt to finance acquisitions
• Roll up multiple small properties
• No need to invent - just acquire and optimize
• Consider payback period when evaluating risk