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Multiples
Its Funny how many guys say sites only sell for a 10 X Monthly Multiple
I wonder how many are actually check writers ????
So I agree a 4 year multiple is high, with inherent traffic risk, but a site is a business , its the same dollars as I was receiving in my prior career that was sold at a almost 6x yearly multiple
A site is worth what a buyer feels is an acceptable return , what he feels it can grow to, etc...Just like a normal business that you would enter....
If I buy a site that makes a Net 4K a month and I pay 18x= 72K
That 72K investment yields me 5.5% / month, annualized 66% ..How's your mutual fund performing ????
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