how much can I sell my revenue domains for?

[WhoDatDog]

If you have an asset that generates $1,000 per year and you pay $15,000 for that asset, then that is a pretty good investment return. Looks like 180 months to me. As far as I know PPC has only been around for a few years, so if you think this is the top then get out now. If a name is making $1,000 per year in PPC then it's potential as a name is likely much more than what the PPC is paying.

What was the PPC of Annuity.com last year? Who freaking cares? The name sold for 600K about a month ago. If the name was making $300 per year in PPC then GT Web could have probably picked it up for $1,200 or so....he would have overpaid if you ask him. Fifteen years revenue would equal $4,500......another surefire way of getting into debt, right GT Web?

PPC is one of the most mis-understood areas in domaining. There are names worth millions of dollars that likely get very little PPC income if undeveloped.

 

[GT Web]

If you have an asset that generates $1,000 per year and you pay $15,000 for that asset, then that is a pretty good investment return. Looks like 160 months to me.

Ahhh, this is where you are mistaken. Yes, for most investments a ROI of 6.67% would be pretty good. However, the domain name industry is moving so quickly, no one can accurately predict where it will be in 5 years. If you were investing in a chunk of land that made you 6.67% per year it would be great, but domains are much riskier than just about any other type of investment.

PPC is one of the most mis-understood areas in domaining. There are names worth millions of dollars that likely get very little PPC income if undeveloped.

Yup, this is true, except this thread is about "revenue" domain names. There are dozens of ways of valuating a domain name, but for this discussion we are talking about revenue, not Google PR, or brandability or anything else (if you want to talk about that please start a new thread).

You obviously did lots of research - you went to DNJournal, found some sales #'s and then made some completely inane statements.

WhoDatDog.com, for example, would be the type of name I would pay millions for - a term like that just carries such a professional and business-like tone.

 

[Duckinla]

I will sell my wife for 15 years revenue. She just started teaching last year so there is a lot of upward income potential.

 

[Biggie]

I will sell my wife for 15 years revenue. She just started teaching last year so there is a lot of upward income potential.

lol selling your wife......"it's hard out there for a pimp"!

These comments below are as a member...not as mod.

GT Web ... makes illogical statements and does not have a clue. he has no right to attack others...whatsoever.

whodatdog...it's best that you ignore his comments.

varchar..sorry that your thread got side tracked by attacking wannbies

 

[GT Web]

GT Web ... makes illogical staements and does not have a clue.

Thanks Biggie! :baby:

 

[Duckinla]

Just to be clear, 15 times cash flow is A LOT to pay for something unless you are factoring in some growth potential or some other unrecognized value.

If I pay $15,000 for $1,000 annual cash flow, in 15 years I will have my money back. In 25 years I will have made an additional $10,000 and will still be earning $1,000 per year.

If I invest $15,000 at 5% interest, in 15 years I will have avout $30,000 and will be earning about $1,500 per year. In 25 years I will have $50,000 and will be earning interest of about $2,500 per year.

Having said that, I will gladly sell my entire revenue generating portfolio at 11 times annual earnings right now. That way I won't have to sell the wife.

 

[GT Web]

Just to be clear, 15 times cash flow is A LOT to pay for something unless you are factoring in some growth potential or some other unrecognized value.

If I pay $15,000 for $1,000 annual cash flow, in 15 years I will have my money back. In 25 years I will have made an additional $10,000 and will still be earning $1,000 per year.

If I invest $15,000 at 5% interest, in 15 years I will have avout $30,000 and will be earning about $1,500 per year. In 25 years I will have $50,000 and will be earning interest of about $2,500 per year.

Having said that, I will gladly sell my entire revenue generating portfolio at 11 times annual earnings right now. That way I won't have to sell the wife.

Best post made in this thread so far.

 

[financialtraffic]

I wouldn't pay more than 4 times earnings right now unless the domain has boundless development potential and a very wide-reaching scope.

I'd rather buy a few gems per year than waste my money on expensive assets.

If anyone in this business is willing to go 15 times PPC revenue they had better well have a detailed business plan involving heavy development in order to speed up the return.

 

[Duckinla]

4 times earnings seems to be a good rule of thumb when valuing based on revenue only. Add some for a good generic with long-term potential, subtract some for a typo, subtract more for a trademark issue I would think. A good generic without typos could have end-user value well beyond the PPC revenue I would think.
I don't buy domains, but I've sold a couple. For the domain in question, 4 times earnings would be about $13,000 if the revenue is $10 per day. I'm going to bet that 99.9% of all domains sell for less than $13,000.

 

[SouthernTn]

But then theres the *Whats the Name*

It could be a term thats only *IN* for the moment, but will play out.. Then, paying 4 times the rev, wouldn't be worth it.

So, all these evaluations are good and stuff, but it still all depends on what the name is, along side what its earning.. Not just, what its earning.