Website Investing
Glossary

The number of months of net profit a website sells for.

Monthly revenue minus all operating expenses.

Total income generated before any expenses are deducted.

All costs required to run and maintain a website.

The ratio of sale price to monthly net income.

The estimated market value of a website.

Annual net operating income divided by asset value, expressed as a percentage.

Return on Investment — the percentage gain or loss on an investment.

The time required to recoup the initial investment from net income.

Visitors who find a website through unpaid search engine results.

Search Engine Optimization — the practice of improving search rankings.

A score predicting how well a website will rank in search results.

Links from other websites pointing to your site.

Words and phrases that people type into search engines.

Specific, low-competition search phrases with 3+ words.

Revenue Per Mille — earnings per 1,000 page views.

Cost Per Mille — what advertisers pay per 1,000 ad impressions.

Banner and sidebar advertisements shown on a website.

Earning commissions by promoting other companies' products.

The percentage of a sale paid to the affiliate referrer.

Affiliate commissions paid monthly for the lifetime of a customer.

Monthly Recurring Revenue — predictable subscription income.

The percentage of subscribers who cancel in a given period.

The methods used to generate revenue from a website.

Earning income from multiple sources rather than one.

The investigation and verification process before buying a website.

Confirming a website's actual traffic using independent data.

Independently confirming a website's actual income.

Evaluating potential threats to a website's future performance.

A negative action by Google that reduces a site's search rankings.

A secure third-party service that holds funds until transaction conditions are met.

The process of moving all website assets from seller to buyer.

Moving a domain name from the seller's registrar to the buyer's.

A website offered for sale on a marketplace.

The price a seller initially lists a website for.

A plan for creating and publishing content to grow traffic and revenue.

The percentage of visitors who take a desired action.

Comparing two versions of a page to see which performs better.

A database of subscriber email addresses for marketing.

A free resource offered in exchange for an email address.

Legal rights to creative works, brand assets, and proprietary content.

A contract preventing the seller from starting a competing business.

The legal contract outlining the terms of a website sale.

A public database showing domain registration information.

Software as a Service — cloud-based software sold via subscription.

Annual Recurring Revenue — yearly subscription income.

The total revenue a customer generates over their entire relationship.

The percentage of customers who continue using a service over time.

A specialized segment of a market with specific audience interests.

Patterns and changes in website valuation and demand over time.

A collection of multiple website investments owned by one investor.