How much worth dropshipping store with 500 monthly profit?

Deividas696

Deividas696

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Hello all,

I'm just curious, how much should be worth dropshipping store which is just 4months old but doing about 500 $ monthly profit?

Thanks in advance for the answers!
 
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In my opinion this depends on other factors as well. For example if your store is built for long term or short term success.

Other factors might be DA, TF, CF, RD.

If you used PBNs for ranking no one will pay near as much if it is whitehat only. (However if your pbn is really great they might not even find out)

I can't really rate with this information. But for estimates I always multiply monthly profit by 14.

For your store: 500 * 14 = 7000USD
 
As mentioned above will depend on many factors.

As a general rule I won't pay more than two or three times the net yearly profit. I assume from those 500 monthly you'll have to deduct the cost of servers for the web, items you sell, maybe some paid ads here and there...

So lets say you have a ROI of 50%, that means out of the total 500 monthly, only 165 would be real net profit per month.

My offer would be around

165*24 = 3960 $
165*36 = 5940 $
 
Are you getting profit organically or through Ads? would be a huge factor in my opinion.
 
perrymason said:
As mentioned above will depend on many factors.

As a general rule I won't pay more than two or three times the net yearly profit. I assume from those 500 monthly you'll have to deduct the cost of servers for the web, items you sell, maybe some paid ads here and there...

So lets say you have a ROI of 50%, that means out of the total 500 monthly, only 165 would be real net profit per month.

My offer would be around

165*24 = 3960 $
165*36 = 5940 $
Click to expand...

Do you know the meaning of profit?
 
Priince1337 said:
Do you know the meaning of profit?
Click to expand...

I do, it can be slightly different.

While profit refers for a general level of revenue, it can be calculated in many levels as well. In this case for example, they might be making money from shoutouts, which could be considered part of the profit or maybe as other income since is not part of the real sales.

Net profit or income just explicit refers to the bottom line or the financials and if I'm gonna put my money on something rather be as explicit and concise as possible :)
 
perrymason said:
I assume from those 500 monthly you'll have to deduct the cost of servers for the web, items you sell, maybe some paid ads here and there...
Click to expand...
Oh that is really something I missed in my calculation. It also matters what product you sell.

A physical product as @perrymason mentioned decreases the ROI. A info product (e-book sales for example) have a nearly 99% ROI.
 
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