Fomo App Growth Story

Justin Mares shares how he and a partner acquired a Shopify app called Fomo through creative deal structuring.

"A partner and I bought a Shopify app called Fomo. It was doing $14k a month when we bought it. We paid less than $400,000 for it. The deal was structured really well - the guy wanted out, he was a single founder. We told him 'We know how to market, we have connections, we can really help grow this thing.'

We bought 85% of the business and arranged to pay him in monthly chunks over 20 months. Every month we used the revenue from Fomo to make our payment to him. My partner and I basically came out of pocket $0 to acquire this asset - we only had to throw in $5 each to pay developers the first couple months.

Now it does about $95k a month. It's been a good deal for everyone - the original owner got his time back, started other companies, and when we exit this thing he'll probably make more than if he had continued running it for the last 3 years, with no headache."