I want to share how and why I sold the company in order to both educate and inspire potential software entrepreneurs.  I certainly don't know everything and obviously companies sell for much more than I sold Long Tail Pro for (I won't be featured in Tech Crunch anytime soon); however, I'm willing to share what I have learned and hopefully that can be beneficial to a few of you.
Long Tail Pro is a keyword research tool. Keyword research helps you find exact keywords that people are actually searching for. Some keywords are high competition (meaning it is harder to rank for on your site) and some have lower competition (easier for you to rank). How does Long Tail Pro work? First it finds the actual keywords for you based on the ‘seed keywords’ that you input. Then it helps you analyze the competition to see which keywords will be harder or easier for you to rank. How does this benefit you? You can take those ‘easier to rank’ keywords and use them in your content to increase search engine traffic to your site.
The Google Keyword Tool is SUPER helpful for building a foundation for your keyword research strategy. At the end of the day, these search numbers are coming straight from the horses mouth. You can filter down to a hyper-local level and see which keywords are getting the largest search volume. Plus, with it’s integration with PPC you can get a quick idea about commercial intent by looking at the bid and competition metrics. How much are people bidding on KWs, higher = more likely to generate a return. Usually its aligned with search intent. That said, the trending data is a little less reliable. I would still use Trends to analyze the popularity/ seasonality of KW search volume.
The final sales price was based on a multiple of trailing 12 months net income (i.e. The average net income over the most recent 12 months).  I feel like I got a very good multiple.  I had talked to the brokers at FEinternational, Quiet Light Brokerage, and had viewed sale history of other similar companies, so I know the price I received was very competitive.
From time-to-time – there are discounts or promotions available for Long Tail Pro. Whenever these become available – all links on my site that lead to the Long Tail Pro sales page will reflect the discounted price. If there is a huge sale or a massive deal – I always let my email subscribers know about it as soon as possible. If you’re not on my email list yet – feel free to sign up by clicking the button below. I’ll even send you one of my FREE guides!
I just have the free version right now so I don't know all that the pro one can do. But even the free version has A LOT of tools you can use, I haven't even figured them all out yet. But one that I have used is their Content Optimizer. You can take a new or existing content piece of yours, and compare it to one of your competitor's pieces on a similar topic, and see where you might be lacking based on the keywords that are used in each piece.

Keyword Overview looks at the entered term on its own and addresses expected searches per month, the difficulty of competing against Page 1 results for the same term, a rough estimate of organic click-through opportunities (versus paid ads and non-organic positions on the search engine results page), and the perceived priority that the user should assign to optimization for this term, where the higher the score, the higher the demand and a lowered level of competition.
Ever since Google announced the impending demise of the AdWords Keyword Tool and their preference for its new avatar – the Keyword Planner, yet another hot discussion has sprung up in the SEO community. This time, strong adherents of the free-for-all ideology are riled at Google’s decision to make the Keyword Planner accessible only to marketers who’ve explicitly signed up to Google’s AdWords (which is one step more than having a Gmail account), taking it closer to being a paid tool in future! I don’t see this as a hindrance, because most other keyword (or other) tools require you to create an account and sign in before you can use them, even if they’re free. But if Google does it, we have reason to pounce on them, don’t we?
For example, assume your search ad generated 5,000 impressions in one day, of which 100 visitors have come to your site, and three have converted for a total profit (not revenue!) of $300. In this case, a single visitor for that keyword is worth $3 to your business. Those 5,000 impressions in 24 hours could generate a click-through rate of between 18-36% with a #1 ranking (see the Slingshot SEO study for more on potential click-through rates), which would mean 900-1800 visits per day, at $3 each, or between 1 and 2 million dollars per year. No wonder businesses love search marketing!
Customize the data that LTP is going to fetch with pre-filters like “Suggested Bid” (or Cost per Click [CPC], i.e. the amount of money an advertiser is willing to pay for a click on their AdWords ad that is targeting that specific keyword), “Local Search Volume” (average number of monthly searches for a specific keyword), “Advertiser Competition” (the amount of advertisers competing for a specific keyword) and “Number (of) Words” (very important when you’re trying to find long-tail keywords).
1 – I’ve found a niche with low competition and good CPC . but the thing is the while doing competition analysis. I observed that most of the sites that are in the top 10 serps ranking are small ecommerce site selling their own product or sites like niche specific classified ad site with low and thin content. What are your suggestions ? Should I go for such keywords ?
Although more and more keywords are getting encrypted by Google every day, another smart way to come up with keyword ideas is to figure out which keywords your website is already getting found for. To do this, you'll need website analytics software like Google Analytics or HubSpot's Sources tool. Drill down into your website's traffic sources, and sift through you organic search traffic bucket to identify the keywords people are using to arrive at your site.
They’ll show you information like how many external links the site has, the number of Facebook and Google+ shares, estimated visits per month, and its page authority. All of this is valuable intel that can give you insight into where your page could potentially rank against them, without needing to do more research with a separate tool or on another page.
This might be the easiest way to make Long Tail Pro pay for itself. I’m pretty sure that the affiliate program is open to anybody (even if you don’t currently own the product). Simply get signed up and then promote it any way you see fit (within the Terms of Service, of course). If you couldn’t tell, I’ve been doing this for quite awhile via this blog and I’ve earned a healthy sum of money over the years as a result.
Provides links to price estimate tools from Google AdWords. That Google AdWords tool showed the necessary bid to rank #1 for 85% of queries, and roughly how much traffic you could expect AdWords to send you based on that bid price and ad position, though, as mentioned above, Google has obfuscated their data in their interface for everyone but longtime AdWords advertisers.

The Google Keyword Tool has a variety of helpful features meant to streamline the keyword research process. By entering terms or phrases into the search box, the Keyword Tool allows you to build extensive, relevant keyword lists from one simple interface. By default, the tool displays Advertising Competition, Global Monthly Searches, Local Monthly Searches, and Local Search Trends for each keyword. Additional options allow marketers to show the estimated Average Cost per Click, Ad share, and Search Share.
The old pricing is never coming back, just to be clear. However, if you bought the one time (lifetime) license at $97, you still have lifetime access to the original version of the software you bought. However, if you want the new/upgraded features (like KC scores), you need to buy into a new plan. If you still have questions, contact me or Long tail pro support at longtailpro com / support
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