How do you make 33 percent annual return on your money?
Well online website businesses are selling for approximately two-and-a-half to three-and-a-half times annual net income today. That means at a 3x multiple you’re looking at a thirty-three percent return on your money.
And of course, if the value of the business appreciates over time, that can be a lot more.
Now of course we need to look at that net income figure and make sure that whatever effort the owner puts into it is valued appropriately. But that’s another video!