thorough piece on purchasing a digital asset.published a very
From why to buy a digital asset, to who are the buyers? And how much should you pay, I found the article to be a good read.
If you are thinking about diversifying your digital asset business to more than just domain names, it’s worth checking out.
We see these sell, on average, at a 1.95x annual profit multiple and have seen them sell for up to a 6x multiple. The reason that a content site, or really any digital asset for that matter, might sell for an extraordinarily high multiple is because the buyer sees a significant weakness in the company that can be fixed rather easily with their skills and then optimized to allow for a speedy return on their investment.
In the wide world of eCommerce, we see sales, on average, of a 1.85x annual profit multiple with a high end at around 4.5x. It’s important to remember that there is a wide variety of eCommerce sites. They can be Amazon FBA stores, Shopify sites, drop shipping companies, print on demand services, or they can own their inventory and be running fulfillment themselves. All of these factors must go into the valuation of any given eCommerce store.