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Old 08-09-2005, 04:37 PM
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jacobwissler jacobwissler is offline
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Join Date: Jun 2004
Location: Houston, Texas USA
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Default Value of Website

A brick and mortar business will sell for 12 to 24 months profit (total owner compensation) plus the value of the hard assets and inventory. Most people purchasing a website will use the same formula.

Some business owners elect to spend a fortune on websites that do not produce revenue, because the website creates an image for the company, just like landscaping for the office. When a business decides to put a $90,000 cement driveway in front of the office and a $40,000 lawn, to make the office look more professional, that is revenue which will not be returned, except perhaps over the very long term if an improved image = more sales. A website may be a similar investment in the company's image.
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