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  1. #1
    Join Date
    Sep 2002
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    United States
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    668

    Reality Check

    I recently turned down a $25,000 offer on a domain name making two people more than $7000 (total) a year with PPC.

    Would you have accepted that offer? If not, what would you have sold for? (Based only on revenue factors shown)

  2. #2
    Join Date
    Sep 2002
    Location
    Sonoran Desert
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    2,681
    Do you mean you each make 3.5k?

    Too little information to give an opinion. Difficult to answer without knowing the name and category it's in. A lot depends on that. Also, the kind of visitors, traffic sourse (typeins)?, old links, paid links perhaps, etc.

  3. #3
    Join Date
    Sep 2002
    Location
    United States
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    668
    Yes, about 3.5k each. All type-in traffic, domain has no search engine standings to speak of and virtually no inbound links, no paid traffic. It's in a business category. U.S. traffic primarily.

    Originally posted by RealNames
    Do you mean you each make 3.5k?

    Too little information to give an opinion. Difficult to answer without knowing the name and category it's in. A lot depends on that. Also, the kind of visitors, traffic sourse (typeins)?, old links, paid links perhaps, etc.

  4. #4
    Join Date
    Sep 2002
    Location
    Wales (UK)
    Posts
    24,745
    Is it a generic/descriptive - and do you believe the revenue will increase with time based on the industry and how you currently monetize it?
    When using google for counts - use double quotes for usage counts for multiword terms and set "match type" to "exact" for all search volume lookups. Click here for more info

  5. #5
    Join Date
    Sep 2002
    Location
    .com.au
    Posts
    11,053
    Need to state the domain for people to give a good idea of value, describing the name yourself is like somebody asking their mother if they look attractive.
    GamesRoom.com, Possum.com, Arithmetic.com on greatdomains auction, low reserves, priced to sell!

  6. #6
    Join Date
    Mar 2003
    Location
    Behind your curtains
    Posts
    4,790
    It would depend on the likelihood of you being able to keep the domain for many years. ie if it's tm or typo I would take it as the days are numbered for owners of these kinds of domains. If it was generic I would not. I asked my mother if I was attractive btw and she said I was an ugly sod so kind of lost there snoops.

  7. #7
    Join Date
    Sep 2002
    Location
    Gold Coast, Qld, Australia
    Posts
    6,985
    Rob aint the only one with an honest Mum.

    Terribly difficult to answer the subject question without knowing the name.

  8. #8
    Join Date
    Nov 2005
    Posts
    50

    Re: Reality Check

    Originally posted by domain
    I recently turned down a $25,000 offer on a domain name making two people more than $7000 (total) a year with PPC.

    Would you have accepted that offer? If not, what would you have sold for? (Based only on revenue factors shown)
    Based upon revenue factors only, I would not have sold your domain. If you put $25,000 in another investment vehicle, it might yield 7 - 10%/year. Keeping it in the domain, you are yielding 28% a year - which is terrific and it does not take into account any potential appreciation of the name itself. If you expect this revenue flow to continue, I would definitely keep the domain.

    Rich

  9. #9
    Join Date
    Sep 2002
    Location
    .com.au
    Posts
    11,053
    isn't this name making 3.5k per year for the owner? 14%
    GamesRoom.com, Possum.com, Arithmetic.com on greatdomains auction, low reserves, priced to sell!

  10. #10
    Join Date
    Nov 2005
    Posts
    50
    Each owner has a $12,500 stake in the property and is making $3500 on the investment. 28% return is stupendous and if this revenue stream continues, is an excellent long term investment.

    Right now I am only making approx. $5000/year on www.links.com. While I have been offered six figures for this domain, I believe I can increase the current yield significantly and therefore drive up the price. I think, when evaluating an offer, a seller should consider:

    1) Current yield (is there a better place to place the money?)

    2) Future potential yield (which is what I am doing with links.com)

    3) Appreciation potential (treat a domain like real estate)

    4) Tax consequences

    Rich

  11. #11
    Join Date
    Sep 2002
    Location
    United States
    Posts
    668
    Sorry, I do want to name the domain because I might consider purchasing other domains that are similar. That is why I asked for opinions based on revenue not brand ability, etc. I have attempted to give all other info however. It is not a typo, not TM, it is two word generic and is not based on any fad that will go away. It is within the business sector. Revenue is currently in an upward trend. I have not sold the domain yet.

    This might be a gamble but I was thinking that I could make $3500 a year for 5 years or so and still sell the domain for more than $25,000 5 years from now making my gross profit $42,500. (If the name is sold, I get all proceeds from sale)

    Flawed thinking?
    Last edited by domain; 05-09-2006 at 02:01 AM.

  12. #12
    Join Date
    Sep 2002
    Location
    United States
    Posts
    668
    Did the person who offered six figures base that amount purely on the PPC revenue you earned or were other factors considered?

    Originally posted by richrf
    Right now I am only making approx. $5000/year on www.links.com. While I have been offered six figures for this domain, I believe I can increase the current yield significantly and therefore drive up the price. I think, when evaluating an offer, a seller should consider:

  13. #13
    Join Date
    Oct 2002
    Posts
    10,988
    Originally posted by richrf
    .

    Right now I am only making approx. $5000/year on www.links.com. While I have been offered six figures for this domain,
    I would have (long ago):
    1) take the money
    2) asked them to kiss my "Royal Tushi "
    3)and run like "Forest Gump".
    (BTW ; I am a terrible Poker player)
    "

  14. #14
    Join Date
    Nov 2005
    Posts
    50
    Originally posted by domain
    Did the person who offered six figures base that amount purely on the PPC revenue you earned or were other factors considered?
    I am sure that most of the value was based factors other than revenue. I have received numerous six figure offers, but have not entered into negotiations because I want to develop the site further.

    Rich

  15. #15
    Join Date
    Nov 2005
    Posts
    50
    Originally posted by Domo Sapiens
    I would have (long ago):
    1) take the money
    2) asked them to kiss my "Royal Tushi "
    3)and run like "Forest Gump".
    (BTW ; I am a terrible Poker player)
    I don't think so. If I took the 10000 and invested it in equally risk free securities (e.g. 5% one year CD), I would be making the same 5,000 without any potential capital appreciation.

    I am quite sure I can increase the revenue with some work. My son is thinking about starting a blog and he is quite good at writing and is really tapped into the youth market. I get 700 uniques a day (over 200,000 a year) so that is a good foundation to start with.

    So for now, I am sure holding and developing is a better strategy. But I welcome any comments on my the way I value investments.

    Rich

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