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How To Price Your Online Business?

by Tamara9182
3 replies
Hi all! I hope this okay to post, but I was wondering if someone could give me insight on what algorithm I should use in pricing my online business? I read online that it should be the gross yearly profit times 2 or 3, but not sure since that would be 6 figures? Also, if anyone has any ideas on where it would be appropriate to sell, I'd be so appreciative.
#business #online #price
  • Profile picture of the author David Beroff
    Some more details would be incredibly helpful.

    But yeah, 2-to-3 years net is one starting point. Much also depends on how much the new owner has to do in order to keep the money coming in; is this completely passive, or do you work on it 60 hours per week, or something in between?
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  • Profile picture of the author writeaway
    Most buyers would look at how much your ACTUAL PROFITS ARE and the following factors:

    1) how easy it is to replicate your business

    2) how many competitors you have

    3) how much of your business is ACTIVE versus PASSIVE income

    4) how much of the business is tied to your personal brand or personality

    5) how much of your business can be outsourced
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  • Profile picture of the author Tamara9182
    Ahh, thanks so much everyone! Extremely helpful. It's a social media marketing business that I currently outsource offshore. I work on it maybe 10 hours a week, but that's just because I'm paranoid and like to see what's happening for myself (review analytics,etc). It could obviously be much less since I have offshore help. I think the unique selling point is simply the established relationships I have with large brands/agencies. Tired of the grind and want to do something a little different. Plus the extra cash and less headaches would be so helpful right now.
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