Disruptive
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- Joined
- May 23, 2012
- Messages
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[TD="class: comment, width: 550, bgcolor: #FAFFFC"]In the book Millionaire Fastlane , MJ Marco says a business is valued according to its net earnings...
Just as an example... if an internet business nets $1000 a month, it might sell for $10.000, a 10x multiple.
My question is, what's the impact of the source of your traffic on this valuation?
If you net $1000 a month from an internet business that gets all it's traffic from Google SEO pretty much on autopilot... does your website worth the same as one website that nets the same $1000 a month but gets all it's traffic from a paid source that can "exhaust" at any time / raise its price at any time?
It's true that relying on SEO for traffic is also not a "sure thing"... you can be hit by an algo change at any time and lose your traffic overnight... but paid traffic pools can exhaust, ads saturate...
Do both businesses have the same value "theoretically" ?[/TD]
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[TD="class: comment, width: 550, bgcolor: #FAFFFC"]In the book Millionaire Fastlane , MJ Marco says a business is valued according to its net earnings...
Just as an example... if an internet business nets $1000 a month, it might sell for $10.000, a 10x multiple.
My question is, what's the impact of the source of your traffic on this valuation?
If you net $1000 a month from an internet business that gets all it's traffic from Google SEO pretty much on autopilot... does your website worth the same as one website that nets the same $1000 a month but gets all it's traffic from a paid source that can "exhaust" at any time / raise its price at any time?
It's true that relying on SEO for traffic is also not a "sure thing"... you can be hit by an algo change at any time and lose your traffic overnight... but paid traffic pools can exhaust, ads saturate...
Do both businesses have the same value "theoretically" ?[/TD]
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