August 18, 2014 (Mon): Knowing the value of your website is an important part of being a successful entrepreneur. Whether you are just now getting your website up or you have already established a consistent revenue stream and a lot of traffic, keeping on top of how much it is worth will give you a much better timeframe on when you will be able to sell it for that big payday you have always dreamed of.
The professionals over at Digital Exits were able to come up with a very informative infographic that allows us to get an estimate on our own e-commerce sites. While it is important to get a professional third party valuator if you are planning on selling the business soon, this infographic can give us a lot of insight of an approximate figure.
While going over the infographic, you will notice the word “multiple” is used a lot. The meaning behind this is about the earnings of your business. As an easy example, let’s assume your e-commerce site has an annual revenue of $200,000. This type of business could easily sell for a multiple of 2 or 3, which means that the estimated value of the business would be about $400,000 to $600,000.
So, make sure to figure out what your e-commerce business is really worth, whether it is with this infographic, or done for free by a professional at Digital Exits.