~LadyH
1/ ROI = return on investment.
E.g. if you give me $100 now and I give you $110 than that’s a ROI of 10%.
2/ A very very unscientific but nice thing:
If you have a x% ROI, it will take you 70/x years to have your money back.
This works for ROI’s from 1% till let’s say 15% and is a good estimation only.
For example; you want to sell your site to your buyer providing him a 7% ROI, which means he will have his money back in 70/7 = 10 years.
So, in this case, your price should be 10 times your yearly cash flow (= cash in – cash out).
BUT: casino affiliate sites are risky business, I woul never buy a site at 10 times yearly cash flow, let’s say a ROI of 15% (so 70/15 = about 5 times cash flow) is more reasonable.
Hope it helps.
PJ
PS/ The 70/x rule is based on log(2), I can give you the full ‘proof’ if you wish.