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What are my websites[slash] online business worth.
Well, everybody knows that step one is..
..valuation!
Now one needs to pick their preferred method for valuating. We have compared sales (based), asset (based), profit (based), and of course the commonly used industry standard comparison, often referred to as rule-of-thumb.
Rule-of-thumb uses values which are truly pertinent to our industry. It is similar to Comparable being you use the average ratio gross profits to sales of the industry standard---compare yours to ALL the others. Not merely one of your choosing.
Comparable means you're comparing yours to basically another which you feel is similar to yours, which sold as recent as possible. As similar in profit, sales, size etc as possible!
Profit is solely based on your books. Most hates this since is tells them what their company is truly worth!
Asset is typically used by, or reserved for, those whom plan to only add the recent acquisition to their current list of assets.
All you need to do is decide the one that pleases you the most. By no means does this tell you the exact value. Only only helps you acquire an estimated value since nothing online is solid.
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