Return On Investment

August 22, 2013  |     |     |   0 Comment

Return On Investment (ROI) is a measure used to evaluate the performance of an investment. To calculate ROI, the Profit is divided by the Cost of the investment to the investor.

Most website or traditional business buyers seek ROI of at least 25% from a website or business purchase. Note that in the case of website purchases involving seller financing, the Cost is the cash down-payment and not the total purchase price.

Author: 

Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.

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