Domain with parking revenue above $1K/day

[BobDiGiTaL]

if it makes 1500 today, it'll make 800 next year and 200 a day in 2012.
+ if it was making what he claims, the seller would show you the stats, not just show you traffic logs for the past 12mo. <---- smells fishy

 

[Deleted member 111831]

It is possible a domain could make more than this.

Poker.com I am sure makes more and it is just a glorified landing page. If they parked with Fabulous I'm confident it would make more than $1k a day still.

If the domain is a typo or vague (the visitors are looking for different things) then a lander may be better. If it is very targeted (they are looking for the same thing) then I think development may be better.

 

[Joe]

Thanks for all of your comments, words of advice, and thoughts on this topic. I am still in talks with the seller and am awaiting to be provided with revenue information directly from the parking provider, along with traffic data directly from the hosting company.

 

[gingeman]

definitely possible.

 

[MikeAuricchio]

It's definitely possible, but so many questions arise.

1. Why has the owner not developed the domain?

2. Why would he ever sell it?

3. Is he naive to the value of such a domain, and if not - what kind of huge sum of money is he asking for it?

I'd love to get a pm of the domain in question, and then maybe some of these questions might have answers attached to them.

 

[Fearless]

The seller is asking $3mil

Do you have $3M cash?

 

[URLtrader]

Ask for 1099 issued by the Parking Company for 2009 !!!

 

[stewie]

3M to buy it ...lol run you have to be nuts , unless the domain name alone is a killer.

*this deal sounds like a life changing deal, for both parties.... ound: like the song says "Run Joey Run"


JMO

 

[MikeAuricchio]

I agree, 3M is too much - market value on any turnkey business like this would be 3x(revenue/year) = 1,000x365x3 = 1.095M... and that's assuming the domain actually makes a grand per day in parking.

 

[HolyRoller]

Its possible yes.
Personally I think $3m is way to much unless the domain name is very valuable in itself, look at what other domains you could buy for that sort of cash. Even $1million and you are still taking a considerable risk. nearly 3 years to start to make a profit and thats assuming that the revenue stays constant and doesn't drop. For this sort of money you could probably buy a great domain name and still have cash left over to invest in develop ment and promotion of an online business

 

[Deleted member 111831]

Its possible yes.
Personally I think $3m is way to much unless the domain name is very valuable in itself, look at what other domains you could buy for that sort of cash. Even $1million and you are still taking a considerable risk. nearly 3 years to start to make a profit and thats assuming that the revenue stays constant and doesn't drop. For this sort of money you could probably buy a great domain name and still have cash left over to invest in develop ment and promotion of an online business

Disagree. If it made $10 a day and was a premium generic .com with 100% type in traffic it would be worth 10-20+ years of earnings. Why should a domain earning $1,000 a day be any different?

Just because $1,000,000 is a lot of money doesn't mean you should get more in return for it. What if this were a group of 100 premium generics? Clearly assigning a 3x multiple would be silly. Same deal for one domain.

Anybody who thinks generic .com traffic is worth 3 years of earnings, feel free to PM me and I'll buy yours.

I have a feeling this is a high xxx,xxx or low x,xxx,xxx domain anyway, ignoring the earnings. That or OP is getting scammed.

 

[MikeAuricchio]

I have a feeling this is a high xxx,xxx or low x,xxx,xxx domain anyway, ignoring the earnings. That or OP is getting scammed.

So you disagree with my estimation that it's worth low x,xxx,xxx - supply rationale for why you disagree, and then you have a feeling that it's worth high xxx,xxx to low x,xxx,xxx lmao... sounds to me like you agree =)

 

[HolyRoller]

Disagree. If it made $10 a day and was a premium generic .com with 100% type in traffic it would be worth 10-20+ years of earnings. Why should a domain earning $1,000 a day be any different?

Just because $1,000,000 is a lot of money doesn't mean you should get more in return for it. What if this were a group of 100 premium generics? Clearly assigning a 3x multiple would be silly. Same deal for one domain.

Anybody who thinks generic .com traffic is worth 3 years of earnings, feel free to PM me and I'll buy yours.

I have a feeling this is a high xxx,xxx or low x,xxx,xxx domain anyway, ignoring the earnings. That or OP is getting scammed.

Well the issue is we don't have enough information to make a real judgement on this. 1 domain is a completely different situation from a group of premium domains. Based on the fact he just has traffic information and we don't know the domain name, paying a $x,xxx,xxx is a risky venture. And, investing in a domain that makes $10 a day and one that makes $1000 a day is completely different.

 

[Deleted member 111831]

So you disagree with my estimation that it's worth low x,xxx,xxx - supply rationale for why you disagree, and then you have a feeling that it's worth high xxx,xxx to low x,xxx,xxx lmao... sounds to me like you agree =)

You misunderstood. I think this domain is probably worth that much regardless of earnings. i.e. I think we are discussing a bookstore.com or green.com type of domain here. If not, the traffic and revenue don't make sense.

---------- Post added at 03:18 PM ---------- Previous post was at 03:13 PM ----------

investing in a domain that makes $10 a day and one that makes $1000 a day is completely different.

Disagree. It is only different if the relative difference in cost is substantial to you. This is like saying buying 10 shares of Apple is completely different than buying 10,000 shares of Apple. If you mean the difference is that Warren Buffet would only consider one while your average accountant would only consider the other, you are right. If you mean there is anything remotely different about these investments, you are wrong.

 

[HolyRoller]

You misunderstood. I think this domain is probably worth that much regardless of earnings. i.e. I think we are discussing a bookstore.com or green.com type of domain here. If not, the traffic and revenue don't make sense.

---------- Post added at 03:18 PM ---------- Previous post was at 03:13 PM ----------



Disagree. It is only different if the relative difference in cost is substantial to you. This is like saying buying 10 shares of Apple is completely different than buying 10,000 shares of Apple. If you mean the difference is that Warren Buffet would only consider one while your average accountant would only consider the other, you are right. If you mean there is anything remotely different about these investments, you are wrong.

If money has no real meaning then you are right, there is no real difference, unfortunately most of us don't have Warren Buffet's capital or bank balance. I understand your logic though. The reference to buy shares though, isn't strictly true, buying 10,000 Apple shares is different from buying 10 Apple shares. The quantity of shares you purchase can have an impact on the value of the shares and the price you pay (thats a bit off topic though lol).

I'm sure you can agree though that without complete information its very hard to say whether the domain is worth $xxx,xxx or $x,xxx,xxx value.

 

[MikeAuricchio]

Agreed, all interpretations at this point are neither valid or invalid without all the facts on the table.

Also, I see where you're coming from PokerPie but comparing domains to stock shares is apples to oranges.

 

[Joe]

I wish that I could tell you all what the name is, but since I cannot, all I will say is that it is in fact very generic indeed. From what I can tell thus far, the domain receives on average between 70-90k type-in's/day. Also, according to Alexa, it has a traffic rank in the U.S. of around 13,000 (if this matters to anyone). Still awaiting to receive more detailed and comprehensive traffic data (direct from the hosting company), as well as the revenue sheets provided directly by the parking company....all this should happen this next week sometime, is what I am told.

 

[Joe]

Here's the latest update folks, for those who care to know: the parking company would NOT directly provide me with traffic or revenue data for the domain even though the seller (their client) was joining in my request, but they were able to confirm in a written acknowledgement that for at least the past 12mo. period, their parking lander for the domain in question receives on average 70-90K type-in's/day and the average NET proceeds exceed $1K/day.

Comments anyone? Is there anything else I should demand to know as part of any reasonable diligence taken....insofar as the issue of revenue or traffic? THANKS.

 

[BobDiGiTaL]

Have your limo take you to the airport, get in your private jet and visit this guy in person.
You shouldn't conduct a 1-3 Million dollar deal over the internet.
Since you are the only one that knows the domain name, you are the only one that can decide whether to buy or not.

 

[scrsteven]

Big warning signs flash when you say "NET" there. "average NET proceeds exceed $1K/day" That makes it sound like the owner is using arbitrage (buying traffic for cheap hoping the visitors will click higher paying ads), and the NET profit (revenue minus cost of traffic) is $1000/day. The buying traffic could be in forms like billboards even where it results in type-in visitors recorded but there are big expenses behind driving that type-in traffic.