[cestith]

For a business that is all about monthly recurring fees, rather than an annual multiple a big part of the consideration can be the customer acquisition cost in the industry. If I have a similar company already, I'll pay you up to somewhere around what it costs me to acquire the same number of new customers some other way. If you have 10,000 subscriptions and it generally costs me $5 per customer to land new subscribers, $50,000 makes a lot of sense. Much less than that is a real bargain. Much more and maybe I just spend the money marketing to your customers instead, depending on what other assets come in the deal. This is largely independent of what your subscription fee is.