How are website and online stores valued or appraised?

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Online businesses will be valued very similar to physical businesses in that they are valued based on a multiple of the net profit to the owner. Obviously with an online business a lot of the establishment costs go into the website development, SEO, marketing plans etc. The seller will want to recoup the costs for this setup. There is also the element of social media presence and website traffic. The development of websites can vary from $1,000 - $100,000+ depending on how the website is built and the platform used. When analysing the valuation of a website or online business it's important to seek professional advice so that you can correctly analyse the business you're investigating. 
 

Tags: online business

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