Digital property fundamentals
What 30x, 35x, 40x actually means
The multiple is not an answer. It is a compression of a dozen judgements into one number.
The monthly revenue multiple convention comes from the content site broker market - platforms like Motion Invest and Flippa. Monthly revenue was chosen as the denominator because it is more stable and less prone to manipulation than annualized figures or EBITDA, especially for small web properties. The convention is imperfect, but it is the market standard and what most buyers and sellers use as a starting point.
Risk
Newer sites, unproven traffic, or a single revenue source score lower. The multiple prices the probability that revenue continues. The higher the risk, the lower the multiple.
Durability
Evergreen content in stable niches commands a higher multiple than trend-dependent content in volatile niches. Durability means the asset will keep earning without constant intervention.
Operations burden
Sites that require high owner time sell for less because the buyer is paying for a job, not an asset. Low-ops sites command a premium.
Growth potential
A site with a clear build roadmap and room to grow commands a premium over one that has plateaued. Buyers pay for potential, not just current earnings.
Exit liquidity
How easy will it be to sell again? Niche size and buyer pool matter. Sites in popular niches with broad appeal are easier to exit and thus more valuable.
The negotiation layer
Listed price and transaction price are rarely identical. What moves a multiple down in negotiation: revenue seasonality revealed in due diligence, traffic concentration, affiliate programme terms. What protects the multiple: clean due diligence, documented systems, warm handover.
Two operators can look at the same site and reach different multiples. The framework narrows the range - it does not eliminate judgement. If a seller's multiple and your multiple differ by more than 5x, the honest conversation is about assumptions, not arithmetic.