Terms by Category
How to Use This Glossary
Each term links to related concepts throughout the page. If you are new to buying or selling digital assets, start with Valuation, Multiple, and SDE in the Financial section — those three will unlock the rest.
Buyers doing due diligence should read through Due Diligence, Escrow, Traffic Diversity, and PBN. Sellers preparing to list should focus on Verification, Owner Dependency, and Transferability.
The categories above are color-coded — financial terms in indigo, SEO in green, traffic metrics in amber. Jump to any section using the buttons at the top of the page.
Financial Terms
SDE (Seller's Discretionary Earnings)
The most common earnings metric for small online businesses. SDE = net profit + owner's salary + owner perks + one-time expenses + interest + depreciation. It answers: how much money does this business actually put in the owner's pocket? Most website valuations use a multiple of SDE.
Add-back
Expenses added back to net profit to calculate SDE. Examples: owner's personal car lease, family phone plans, one-time legal fees, owner's conference travel. Legitimate add-backs are normal — excessive add-backs are a red flag.
Valuation
What a business is worth based on earnings, growth, risk, and market comparables. Common methods: SDE multiple (small businesses), EBITDA multiple (larger), DCF (projected cash flows), and comps (what similar businesses sold for). Use Empirelytics' free valuation calculator.
SEO & Search Terms
PBN (Private Blog Network)
A network of websites built solely to create backlinks. Google penalizes sites using PBNs. During due diligence, check if the site's backlinks come from real websites with real traffic or from obvious PBNs (identical IPs, same design, no traffic).
EEAT
Experience, Expertise, Authoritativeness, Trustworthiness. Google's framework for evaluating content quality, especially after the Helpful Content Update. Sites with clear author credentials, original research, and transparent ownership (not anonymous) rank higher and are worth more.
Sandbox
Informal term for Google's probation period on new domains (first 3-6 months). New sites rank poorly regardless of content quality. When buying a site, check domain age — sites under 6 months are high-risk because they haven't exited the sandbox. Buyers pay premium for aged domains (2+ years).
Traffic & Analytics
Organic Traffic
Visitors who arrive via search engines (Google, Bing). The most valuable traffic source — it's free, sustainable, and indicates genuine demand. A site with 90% organic traffic is more valuable than one with 90% paid traffic. Verify organic traffic via GA4 read-only access.
Paid Traffic
Visitors from ads (Google Ads, Facebook Ads). Less valuable than organic because it costs money to maintain. If paid traffic stops, revenue typically drops to near zero. Check: what's the ROAS (return on ad spend)? Is the business profitable after ad costs?
GA4 (Google Analytics 4)
Google's analytics platform. For verified Empirelytics listings, sellers grant read-only GA4 access so buyers can independently verify: monthly traffic, traffic sources, geographic distribution, device split, bounce rate, pages per session, and session duration. No screenshots that could be faked.
Traffic Diversity
How many different sources send visitors. A site getting 80% of traffic from Google is risky (one algorithm update could destroy it). Healthy diversity: 50-60% organic, 15-20% direct, 10-15% social, 5-10% referral, <5% paid. Buyers discount single-source traffic sites.
SaaS Metrics
MRR (Monthly Recurring Revenue)
The predictable monthly subscription revenue. MRR = number of customers x average subscription price. SaaS businesses are valued at 3-5x ARR (Annual Recurring Revenue = MRR x 12). Growing MRR commands a premium multiple.
ARR (Annual Recurring Revenue)
MRR x 12. The standard SaaS valuation metric. A SaaS business with $120K ARR growing 20% YoY with <5% churn might trade at 4-5x ARR = $480K-$600K.
LTV (Lifetime Value)
Total revenue a customer generates before canceling. LTV = average monthly revenue per customer / monthly churn rate. A business with LTV 3x higher than CAC (customer acquisition cost) is healthy. Higher LTV:CAC ratio = more valuable business.
CAC (Customer Acquisition Cost)
How much it costs to acquire one paying customer. CAC = total marketing spend / new customers. The LTV:CAC ratio should be at least 3:1. A business spending $500 to acquire a customer worth $300 in LTV is losing money on every sale.
Digital Asset Types
Content Site
A website that generates revenue through display ads (Mediavine, Raptive, AdSense) and/or affiliate links. Revenue is typically tied to organic traffic. Content sites trade at 2.5-3.5x annual SDE. Key metrics: traffic, RPM, niche longevity, content quality, EEAT signals.
Affiliate Site
A website earning revenue by referring visitors to products/services and earning a commission on sales. Amazon Associates (1-10% commission), ShareASale, CJ, Impact, and direct brand partnerships. Amazon commission rate cuts are a major risk factor.
E-Commerce Store
An online store selling physical or digital products. Shopify, WooCommerce, or custom platform. Valued at 2-3x SDE typically. Key metrics: AOV (average order value), repeat purchase rate, supplier diversification (not dependent on one supplier), and inventory turnover. Dropshipping stores trade lower than branded inventory stores.
SaaS (Software as a Service)
Subscription-based software business. Valued at 3-5x ARR growing, 2-3x ARR flat. Key metrics: MRR/ARR, churn, LTV:CAC, NPS, feature adoption, developer dependency, and tech stack maturity. SaaS is the most valuable digital asset category per dollar of revenue.
Newsletter Business
A business built on an email list. Revenue from sponsorships, paid subscriptions (Substack, ConvertKit), or affiliate offers. Valued at 2-4x annual profit. Key metrics: subscriber count, open rate, click rate, list growth rate, churn. A 50K-subscriber newsletter with 40% open rate is very valuable.
Domain Name
A web address sold as a standalone asset. Premium .com domains with high search volume, brandability, and shortness command the highest prices. Valued by comparable sales. Voice.com ($30M), NFTs.com ($15M) are outliers — most domains sell for $2K-$50K.
E-Commerce
AOV (Average Order Value)
Average amount spent per order. Higher AOV = more revenue per customer. E-commerce stores with $100+ AOV are generally more valuable than $20 AOV stores because they can afford paid acquisition.
Content & Advertising
RPM (Revenue Per Mille)
Revenue per 1,000 pageviews. Key metric for content sites. Mediavine/Raptive sites typically see $15-40 RPM. A site with 100K monthly pageviews at $25 RPM earns $2,500/month. Higher RPM = better ad network or niche.
Ad Network
Platform that places ads on a content site. Premium networks (Mediavine, Raptive/AdThrive) require 50K-100K monthly sessions and pay $20-40 RPM. Entry-level: Google AdSense ($5-15 RPM). A site graduating from AdSense to Mediavine typically doubles revenue overnight — a common value-add for flippers.
Buying & Selling Process
Due Diligence
The investigation period after an offer is accepted. Buyer verifies everything: traffic (real or bot?), revenue (real or fabricated?), content (original or plagiarized?), backlinks (natural or PBN?), accounts (transferable or locked?). Typical due diligence is 7-14 days.
Escrow
A neutral third party holds the buyer's payment until the seller transfers the asset. Funds are not released until the buyer confirms receipt. Protects both parties. Empirelytics facilitates escrow on every transaction. Typical escrow fee: 0.5-1% of purchase price.
Asset Purchase Agreement (APA)
The legal contract governing the sale. Specifies: what's being sold (domain, content, code, accounts, email lists, social profiles), purchase price, payment terms, transition support period, non-compete clause, and representations and warranties. Have a lawyer review this.
Migration
Transferring the asset from seller to buyer. Includes: domain push/transfer, hosting migration, database export/import, code repository transfer, email account handover, social media admin transfer, payment processor reconnection, analytics property access. Complex migrations need 2-4 weeks.
Non-Compete
A clause in the APA that prevents the seller from starting a directly competing business for a specified period (typically 2-5 years) within the same niche. Standard in digital asset sales. Protects the buyer from the seller immediately recreating what they just sold.
General Terms
Flip
Industry term for buying and selling websites for profit. 'I flipped that site for 3x what I paid' means the buyer improved the business (grew traffic, added revenue streams, optimized operations) and resold it at a higher multiple. Empirelytics is a marketplace for buying, selling, and flipping digital assets.
Broker
An intermediary who facilitates the sale. Brokers list the business, vet buyers, manage communications, coordinate due diligence, and guide the transaction to close. Empirelytics provides broker support on deals over $50K. Typical broker fee: 10-15% of sale price, paid by seller.
Verification
Empirelytics' system for proving a listing's claims are real. Three tiers: Basic (seller self-reports, team reviews), Verified (payment processor and analytics connection confirmed), and Identity-Verified (seller's government ID checked). Verified listings sell 3x faster.
Niche
The specific topic or market a website operates in. 'Survival gear reviews' is a niche. 'Poker strategy for beginners' is a niche. Narrower niches often have less competition but smaller audiences. The sweet spot: a passionate niche with high RPM and low competition.
Monetization
How a digital asset makes money. Common methods: display ads, affiliate marketing, sponsored posts, digital products, SaaS subscriptions, e-commerce sales, services/consulting, membership sites, and lead generation. Diversified monetization (3+ methods) reduces risk and increases valuation.
Ready to put these terms into practice?