> A few more emails/phone calls laters (this became a theme) they finally made their first offer. It was around 3.5x revenue.
Is this the standard opener now? Also, is that 3.5 annual or monthly revenue? For centuries I believe that 20x annual revenue has been a rule of thumb for properties, companies &c.
I think online properties are generally worth less because they take less time to cultivate and build. Also while their earning potential might be solid over the short term, over the long term it's not so easy to gauge.
His Bible app is obviously different than most such properties, which is why he was able to bump up the offer. But still, if the app landscape changes, that can make their purchase worthless overnight. So you have to price that into the offer.
Is this the standard opener now? Also, is that 3.5 annual or monthly revenue? For centuries I believe that 20x annual revenue has been a rule of thumb for properties, companies &c.