Godd generic dot com's what revenue multiple?

[TheLegendaryJP]

Ok guys here a question for you, just taking a bit of a survey.

Let's assume you own a nice two word dot com
10 yrs old
Has approx 1XXX uv a month
Has a nice high ctr above 50% as it is highly targeted
Is an industry that will not end, say its Job/Work related
Shows a little ovterture with extension
Easily monitized via parking or affiliate
Currently earning $6 a day or roughly $180 a month on low rev share account so there is room to grow elsewhere if the buyer had a better account share.


My question, how many years revenue would you sale for if approached?

Personally I have found many big players want 20-25 yrs, no joke! Do you think asking 15-20 yrs is too much, I know 10-15 is more like it but the issue is FINDING names like this investors will part with.

What are your thoughts?

 

[katherine]

I wouldn't value the name just based on revenue. You're saying it's a generic so it must have built-in value regardless of revenue - revenue should be treated as a bonus. If it were a so-so name with traffic but nothing special to it, then yes I would consider selling based on (quality of) traffic & revenue. Perhaps 5-8 years, it depends. Maybe it's because I don't have too much faith in the future of PPC as we know it.
.

 

[TheLegendaryJP]

True, quality of name is important, good point.

Yes would be a nice name like findJobs etc.

 

[hugegrowth]

I would base the price of the name more on the market you are in. For example, what could the domain earn in the hands of a business in that market? Revenue multiple from parking only applies if you are selling the domain to another domainer, and don't want to get full end user value.

 

[Biggie]

Ok guys here a question for you, just taking a bit of a survey.

Let's assume you own a nice two word dot com
10 yrs old
Has approx 1XXX uv a month
Has a nice high ctr above 50% as it is highly targeted
Is an industry that will not end, say its Job/Work related
Shows a little ovterture with extension
Easily monitized via parking or affiliate
Currently earning $6 a day or roughly $180 a month on low rev share account so there is room to grow elsewhere if the buyer had a better account share.


My question, how many years revenue would you sale for if approached?

Personally I have found many big players want 20-25 yrs, no joke! Do you think asking 15-20 yrs is too much, I know 10-15 is more like it but the issue is FINDING names like this investors will part with.

What are your thoughts?

LJP

i never think about asking what i want for a domain as being too much...that's for the potential buyer to decide

we go back, so take this like it's meant


you (not you specifically) will NEVER, EVER, be a BIG PLAYER....until you STOP thinking like a SMALL FRY.



i have sold generic domains making $2 > $4 a month for 5 figures, so those calculate @ 100 plus years revenue.

i think when you have a generic domain that has traffic and produces revenue, then you shouldn't use multiples for pricing.

the price should reflect the value which you have conveyed to the potential buyer, in how it will enhance or grow their business.

end-users don't know anything about domainer multiples...only other domainers do, so why use it to calculate a price, unless you're selling to another domainer?

then again, a lot depends on your financial situation and how desperate you are to sell.

imo...

 

[TheLegendaryJP]

I hear ya Biggie, personally always catered to domainers so always getting as close to the " limit " as possible without selling too short.

Regrets, Ive had a few...

 

[Focus]

I would say realistic value is current sustainable revenue x 12-15 years + base generic value of name = price

last big one we sold was 25 years + rev multiple..and was a great deal for the buyer

It definitely all depends on your motivations and cost though...if you need the cash flow to make more money sometimes a bird in the hand is surely worth two in the bush, esp. when that bush might not be there in the future. Good luck brother..and PM me the name of course! :smokin:

 

[TheLegendaryJP]

I would say realistic value is current sustainable revenue x 12-15 years + base generic value of name = price

Great minds think alike

 

[PRED]

i agree with jp and focus last few posts, problem is, thats what it 'should get'.
unlikely resellers will pay that imho. 15 years rev. + what the name is worth? off these tight gits lol?
i have a couple of domains making 3/400 per month each short .coms, generic, tick all boxes
i dont want to sell as an income source, but also i know resellers will try and nail down price on revenue, when it has original value which is substantial imo and 'then' revenue on top. of course this ppc revenue to a domainer is ok, but the savings to an enduser and worth in traffic are worth infinitely higher.
all in all these sorts of names are too good for resellers as they wont pay what theyre worth.

this whole revenue thing has got distorted as the peopel with revenue names are very often crappy typos with no inherent value, traffic can also just disappear so be very careful buying those sorts of names.
its shocking sometimes how many good one word generics get very little traffic, any research shows that.
all in all jp, if its a great 2 worder with traffic, you gotta develop or approach endusers. or you will just get lowballed imo

 

[TheLegendaryJP]

I hear ya Pred, its a delicate balance. I can verify most great dot com's I have sold are based mainly on spec and little on revenue. Mind you the climate is shifting fast and hard to revenue which hurts us to a large degree. At one time not long ago the name far exceeded the revenue multiple, now adding to even a multiple is challenging. A lot of great prices realized the last couple months but over all, tough crowds. I remember the days just about any decent one word dot com would nail down $2XXXX $3XXXX+++ in hours, now the first Q is, what is rev like. In the " old days " that question would easily be laughed off, now if you want to sale....

 

[Beachie]

From the activity on here and around the main marketplaces, the domain market seems pretty much dead to me. Based on offers I've received recently, the multiple is about 4 minutes or 0.000007 years, so your domain earning $6/day would be worth about 40 cents.

 

[TheLegendaryJP]

From the activity on here and around the main marketplaces, the domain market seems pretty much dead to me. Based on offers I've received recently, the multiple is about 4 minutes or 0.000007 years, so your domain earning $6/day would be worth about 40 cents.

Are you offering :lol:

 

[Keyboard Cowboy]

From the activity on here and around the main marketplaces, the domain market seems pretty much dead to me. Based on offers I've received recently, the multiple is about 4 minutes or 0.000007 years, so your domain earning $6/day would be worth about 40 cents.

Back for good?

 

[Beachie]

Are you offering :lol:

Hehe I'm being a bit tounge-in-cheek, of course, but in all seriousness I'm surprised at how slow things have been for the last six months.

Back for good?

I've been back for a little while, but not posting much

 

[David G]

From the activity on here and around the main marketplaces, the domain market seems pretty much dead to me. Based on offers I've received recently, the multiple is about 4 minutes or 0.000007 years, so your domain earning $6/day would be worth about 40 cents.

What with revenues being down so much over past couple years selling based on ppc rev multiples makes little sense. Even at 100 X income it may not be good for sellers.

 

[Biggie]

I've been back for a little while, but not posting much

your imput was missed...welcome back!

 

[Devil Dog]

From the activity on here and around the main marketplaces, the domain market seems pretty much dead to me. Based on offers I've received recently, the multiple is about 4 minutes or 0.000007 years, so your domain earning $6/day would be worth about 40 cents.

Apparently you do not realize I am a reseller. I'll give 2 minutes and that's all that name is worth.

You will be thankful I took this name off of your hands.

 

[BobDiGiTaL]

it depends on the name, a generic revenue earner is worth at least 10 years, even if there is no parking revenue in 10 years.