Contribution Margin is revenue remaining after variable costs directly associated with generating that revenue.

What Does Contribution Margin Mean?

Revenue remaining after variable costs directly associated with generating that revenue.

Why Is Contribution Margin Important When Selling an Online Business?

This term can affect how buyers evaluate risk, value, transferability, payment structure, or the practical completion of an online business acquisition. Founders should understand it before entering negotiations or signing transaction documents.

Related Terms

• Gross Margin
• Customer Acquisition Cost
• Adjusted Profit
• Take Rate
• Valuation

Next step: Explore the related glossary terms above or request a confidential online business valuation from Company-Seller.