cyberair - 4:50 pm on Mar 18, 2005 (gmt 0)

Actually, as long as the site continues earning the same, your asset has not lost value. Therefore, all the income you are receiving could be considered a profit.

As for a 3 to 6 months multiple, I would love to find a seller willing to accept those terms. If anyone can find one, buy the site and sell it to me for 12 months multiple asap.

I agree that a solid web business is just as any other business. Web business also have real estate and assets. A very important real estate in the web is the Domain. If you are in the widgets market, and the website being sold is widgets.com, then it is fair to recognize widgets.com as a very valuable piece of real estate. Widgets.com becomes a location, an Address, the same as a retailer buying a block at Rodeo drive, or XYZ company buying an office near Wall Street, it's prime location for business.