Customer Concentration is the degree to which revenue or profit depends on a small number of customers.

What Does Customer Concentration Mean?

The degree to which revenue or profit depends on a small number of customers.

Why Is Customer Concentration 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

• Risk
• Customer Retention
• Recurring Revenue
• Valuation Multiple
• Due Diligence

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