A business is an asset with a revenue stream which can be purchased or sold. Businesses can be valued in a number of ways. One way to value a business is to use SDE (seller's discretionary earnings). SDE includes the net profit of the business plus any personal income, discretionary income, one-time expenses, and owner salaries that should be added to the net profit. Traditional businesses are valued at a multiple of 2 to 4 times the most recent 12 months of cash flow plus assets. Network marketing and direct selling distributorships, however, are valued differently from other businesses.