For my purposes, my valuation of a web-based business is strictly based on cashflow. My budget depends on what you're selling.
If it's a content-only site used for AdSense revenue -- making $40/month net income, my budget may be $200.
If it's exclusive rights to a downloadable script that's netting $200/month, my budget could be $1,800.
If you've built a loyal membership site that's earning $400 a month, I may pay you $4,000 for the site.
Established offline businesses usually sell for 2-3x annual earnings. Small internet businesses are inherently more risky, and typically sell for 5-10x monthly earnings. Use that as a rule of thumb.
