[i]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? [/B]

If you believe you can maintain the revenue stream, you can sell the name for as little as $8000 in five years and still come out ahead. Of course, you are hoping to find a buyer for the name, and that is always difficult to predict. It is like real estate. You are counting on a revenue stream as well as finding a buyer. Good real estate is easy to sell, other types you have to wait and see if a buyer comes by.

Rich

I threw that out there because it seems most people making offers based on PPC revenue multiples dont consider the fact (or at least factor it into the domain name value) that they will be able to sell the domain name for most likely a higher price in 3 or 5 years. Seems like some consideration should be given to that.

Originally posted by richrf
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.

Domains are a very high risk asset, only 6 years ago values fell about 90-95%. In terms of your cashflow think about an industry where almost all revenue comes from only two sources, yahoo and google.

Originally posted by snoopy
Domains are a very high risk asset, only 6 years ago values fell about 90-95%. In terms of your cashflow think about an industry where almost all revenue comes from only two sources, yahoo and google.

Yes, this is true. At the height of the dot.com craze I was being offered six figures for www.links.com. Then the offers turned cold - as low as mid five figures. Now it is up again. Very similar to real estate. However, I have found that prime realty property, tends to appreciate over the long term. It is a bit of a risk with links.com, but very few investments are risk free, except maybe for Treasury securities which are yielding a little over 5% at this time. As long as I am getting revenue that approximates risk free investments, I am satisfied.

Time will tell - as always.

Rich

Originally posted by richrf
However, I have found that prime realty property, tends to appreciate over the long term.

I think the property comparison probably isn't good, at some point in the future domains will likely be replaced by something else. Maybe that will be 20 or 40 years, but I can't see domains lasting forever.

Originally posted by snoopy
I think the property comparison probably isn't good, at some point in the future domains will likely be replaced by something else. Maybe that will be 20 or 40 years, but I can't see domains lasting forever.

Tough to say, but addresses (e.g. Park Ave.) seem to have very long lives. In any case, 20 - 40 year horizon is excellent for any investment.

Rich

Rick :
Things to ponder:
1) Cash is King
2) How much rent/revenue would a 100 K condo will give you per month (less risk) ?
* or a duplex for that matter.
3)You are getting offered 20 years revenue.
4)There is such a thing as "too generic of a domain name * " and I think links.com is one (* copyrighted by moi)
5)
http://domainstate.com/showthread.ph...5&pagenumber=5

Hint: read it backwards, last page first.

6) Remove all links and "search boxes" from your parked page, only " show ads" for games music and chat, they either will click or leave , you will be surprised of the results.
7)Life is short.

Question for Domain:
If you were offered 20 years of revenue would you have posted this thread ?
or would you have run like Forest ?

Domains appear to be much like real estate values in my opinion - a bumpy ride - with long term upward movement, provided you don't own any swamp land.

The dot.com bust was an anomaly, but like playing the stock market, you have to know when to hold 'em and know when to fold 'em.

Originally posted by snoopy
I think the property comparison probably isn't good, at some point in the future domains will likely be replaced by something else. Maybe that will be 20 or 40 years, but I can't see domains lasting forever.

Originally posted by snoopy
I think the property comparison probably isn't good, at some point in the future domains will likely be replaced by something else. Maybe that will be 20 or 40 years, but I can't see domains lasting forever.

The net is built upon the logic and consistency already inherent in everyday language ... which has served society well for centuries. What do you envision in 40 years that would be better?

Originally posted by Domo Sapiens
[B]
3)You are getting offered 20 years revenue.

I don't think many buyers for the name links.com would be trying to jutify a purchase on revenue, I think the 6 figure offers would either be people with a plan for the name or people speculating (hoping to resell). Whether the name makes $1 per day or $13 per day wouldn't have much effect on its value in my view.

Originally posted by snoopy
I don't think many buyers for the name links.com would be trying to jutify a purchase on revenue, I think the 6 figure offers would either be people with a plan for the name or people speculating (hoping to resell). Whether the name makes $1 per day or $13 per day wouldn't have much effect on its value in my view.

Agreed, but there is uncertainty as to what's the full potential for this domain? if it was developed ( also needing consideration are the costs , time and know-how associated with doing so)
IMO if you add all the ingredients 100 K is a decent offer .

Originally posted by carlton
What do you envision in 40 years that would be better?

The manner in which people navigate a network.

$7000 X 20 years = $140,000
See Domain Run!


My hunch is if I ever find the time to develope this site, it will make $25,000 a year minimum.

Originally posted by Domo Sapiens
Question for Domain:
If you were offered 20 years of revenue would you have posted this thread ?
or would you have run like Forest ?

Originally posted by snoopy
The manner in which people navigate a network.

you got me thinking..
LAN , WAN or ..?
What can it be better than WIFI.. telekinesis ?

Originally posted by Domo Sapiens
Agreed, but there is uncertainty as to what's the full potential for this domain? if it was developed ( also need consideration is the costs , time and know-how associated with doing so)
IMO if you add all the ingredients 100 K is a decent offer .

Agree about the uncertainty-but that could be said of any domain where purchase can't be justified on the basis of revenue. A more extreme illustration might be a name like zqy.com- the value is largely to do with characteristics of the domain aside from traffic, if you sold the name then considered the revenue multiple it would probably be 100 years or more.

If links.com had revenue of say 30k per year I'd probably agree it would be valued based on revenue, because the price traffic people would pay would probably be higher than what someone solely looking to resell or develop would pay.