SOP #57 — Building the Multiple

SOP #57 — Building the Multiple

Don't accept the asking multiple — build your own from risk factors. Run this to set a defensible number.

1. Start from the niche baseline multiple (e.g. 30–40x monthly profit for content). Write it down.
2. Subtract for traffic concentration: one source over 70% drops the multiple. Fail to adjust and you overpay.
3. Subtract for revenue concentration: one program or product dominating cuts it further.
4. Subtract for age under 24 months — young sites carry update risk.
5. Add back for diversified income, owned email list, and growing trend. Each is a small premium.
6. Land on a range, not a point. Fail if you bring a single number to the table.

Save this — run it every deal.