Factors That Lead to a Higher Multiple During Valuation


Factors That Lead to a Higher Multiple During Valuation

Minimize critical points of failure

Anything that has the power to be a total deal breaker can be considered as critical points of failure. Even so, you might want to minimize this as much as possible. For example, your traffic could be killed along with your revenue if your website traffic is purely Google-organic. Similarly, if you are an Amazon affiliate, and amazon changes its terms and services overnight, then you could get banned for reason that you did not understand or have time to react to, ending up with a site that makes zero money. 

Seo services in ahmedabad says that in the ecommerce space, there are situations where the entrepreneur only has a supplier who makes their product. What if the supplier suddenly wants to increase prices?

This is why, it is important for you to diversify your traffic sources and have multiple monetization strategies for a content site. 

Every business has some weakness and your job should be to minimize those weaknesses in and optimize your content to get the most value out of your business. 

High traffic

Because higher traffic correlates with higher revenue, it should ultimately increase your net profit. There is no doubt that high traffic can be an added bonus to the multiple on top of creating a solid net profit. There are many buyers who look for businesses that can be optimized to the extreme at eery marketing funnel. When there is high traffic, then there is more room to play with the different conversion rate optimization factors.

While there are many sellers that are fantastic at driving traffic, they might not exactly be the best at copywriting or cro in general. Here lies the biggest opportunity for the buyer to increase conversions with their own copywriting skill. 

Email subscribers

It is a cliche in the marketing space to say that money lies in the email list. But it is so common that it is an unavoidable factor. Email has often been one of the biggest drivers of revenue for companies. The best seo company india says that you have to be one of the people who takes conscious steps towards having an effective email list. ultimately , even if it proves to be a miss, it counts when your business is being valuated. The thing to note is that if you can prove that your email list is adding value to the business, then your email list can actually improve your overall multiple. Using a good email automation sequence to up-sell your traffic and routinely email them with pieces of high quality content and offer, then your email list has a lot of importance. 

Social media following

Over the time, social media has become really important. Today, it can also be seen as an important even if it is a fickle beast. 

You should think of your social media following as a soft email list. Although the reach of the social media would be different in comparison with the email list, it is just as important.

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