Buying based on revenue

[mxzsleds]

I know revenue is a good benchmark to determine a price for a name. I think people are too interested in the actual parked revenue a name is making rather than its potential. The same name can make $2 a day on namedrive $4 a day on sedo or $6 a day on hitfarm or vise versa. When you are talking about 36-48+ months revenue you are talking about 100's-1000's of dollars difference. Even more important to point out, my sedo account could be different than your sedo account. I could be getting more/less per click on the same key word as you for the same name. Sales should be less revenue based and name value should involve a number of factors.

 

[dcristo]

At the end of the day its based on what the buyer is prepared to pay. If you want more money for your domains then it's in your best interests to better monetize them. If you can prove to someone that a domain can make so much a day, then your giving more confidence to the potential buyer.

 

[mxzsleds]

Just because I make $xx amount of dollars a day on a name does not mean Joe Schmoe will make the same amount of money on that name. Even if Joe is doing the exact same thing as me. This is the point I am getting at, people are obsessed with revenue, and should be more concerned with other factors.

 

[WhoDatDog]

Anyone who sells legitimate type-in revenue names for months of revenue is getting the worst of it by far. Even if somoene offered 30 years worth of revenue it would probably be a good deal for the buyer.

The Internet isn't even out of the first inning and PPC hasn't even gotten it's feet wet. I would never sell any good PPC name for anywhere near what the prices are today.

Those who are constantly looking to pay 24 months revenue for great names have no concept of the time value of money or investment in general. If they do then they are secretly laughing at all of the clowns who are basically giving away their names for free.

I would rather just wake up everyday for 24 months and keep the money (and the name) myself. The people who have the really great names know better than to sell them for PPC revenue. In fact, out of all the biggest sales I have seen at DN Journal I cannot remember one instance where stats were even mentioned.

No end-user has ever mentioned stats when buying any of my names, and I have never asked for stats when buying any worthwhile name.

The stronger the name the less important the stats are, and the weaker the name the more important.

 

[mxzsleds]

The stronger the name the less important the stats are, and the weaker the name the more important.

I agree. I think you can also say that about the buyer.

 

[Biggie]

Buying domains that have a level of risk at "revenue x's # of months" is reasonable.

Generic domains of course, do not fit this category.

 

[WhoDatDog]

Buying domains that have a level of risk at "revenue x's # of months" is reasonable.

Generic domains of course, do not fit this category.

Those aren't really revenue names. Lots of it is manufactured and not statistically reliable or relevant anyway. A name that is decent enough to get a few type-ins on it's own should never be sold for a few years revenue.

No sane person with predictable revenue would sell at these rates. The transactions that occur in the "hot potato" market usually end badly for one of the parties, with the seller having way more information than the buyer at the time of sale.

So-called "Revenue Names" in this area really aren't revenue names at all. It's just a way for one side of the transaction to get the upper hand. I guess there must be a few people who have sold legitimate revenue names at low multiples, but they are few and far between.

 

[Biggie]

Those aren't really revenue names. Lots of it is manufactured and not statistically reliable or relevant anyway. A name that is decent enough to get a few type-ins on it's own should never be sold for a few years revenue.

No sane person with predictable revenue would sell at these rates. The transactions that occur in the "hot potato" market usually end badly for one of the parties, with the seller having way more information than the buyer at the time of sale.

So-called "Revenue Names" in this area really aren't revenue names at all. It's just a way for one side of the transaction to get the upper hand. I guess there must be a few people who have sold legitimate revenue names at low multiples, but they are few and far between.

I am speaking more to the so-called "tm/typo" market of domains that produce revenue based on traffic by those who cannot type correctly.

these are what i consider "risk" names and selling or buying them according to a monthly revenue multiple is acceptable.

typos of generic words or phrases, again do not fit this category.

 

[fatter]

I like to figure revenue names for end users based on what it would cost the enduser to buy the same traffic, to me is more than fair. ie: if joebusiness has to pay google 5.00 a click for my keyword then if i get 10 typeins a day then based on that he would be paying 50.00 a day for the 10 visitors, discounting about half the traffic because half would not click on joebusinesses link because he wanted something else. I think the first link in adsense gets about 50 percent of the traffic.as you can see my formula would pay the domainer a lot for the domain. Guess why i dont sell any names
But the way i look at it i am making good money so no rush to sell, and i say this to endusers you can pay me now or pay me later, eventually they will figure it is cheaper to buy the domain, especialy with all the click fraud, click fraud doesnt effect your company when you own the name