I have invented a the economic term "ROT" - you saw it here first

[RoToHead]

I am trying trying to keep the ROT as high as possible... to show value of DN after stats and evaluation of many variables, I have invented a the economic term "ROT" - you saw it here first

- the Ratio: Revenue over Traffic - ROT

$7 per real customer is better than $0.70 even with the 10 X volume

Test it on your own stats and revenue. Good luck! I welcome your results and comparisons.

 

[maroulis]

I am trying trying to keep the ROT as high as possible... to show value of DN after stats and evaluation of many variables, I have invented a the economic term "ROT" - you saw it here first

- the Ratio: Revenue over Traffic - ROT

$7 per real customer is better than $0.70 even with the 10 X volume

Test it on your own stats and revenue. Good luck! I welcome your results and comparisons.

you want an interview w/Larry King next? What is it you're smoking?

 

[Domagon]

ROT? You're kidding right LOL!

When I see ROT, I think of ROT-13, which is an extremely premative, "weak" encryption, but I digress.

Anyways, the widely used acronym RPM (revenue per thousand impressions) refers to practically the same thing. Related acronyms include RPC (revenue per click) and CTR (click-through rate).

Pegging a domain name value involves much more than traffic / earnings ... I've personally sold some domains that received very little traffic and/or earned very little for 4, 5, and even 6-figures+ ... there is no sure way to value a domain beyond what someone else is willing to pay.

Ron

 

[RoToHead]

Larry King - not. Andrew Duff - maybe.

ROT - a quick Ratio: Revenue over Traffic - like venture analysts asking want EBIDTs - not wanting to initially look at all the consolidated financials - they just want a tool for a snapshot.

My research suggests the ROT is a similar handle, and an important way to gain credibility, verses selling hype, in the DN marketplace

ROT is that snapshot of the financial reality, (I know on this DNforum we are often concerned selling the sizzle or hype of new names – but for the big firms – they need data) of the ROT potential - of course this is more boring because it is a bottom line dollar results measurement - whether the DN is bankable, verses just 'marketable'

Why else would someone buy a domain name - the feel ‘it is a money maker’ the potential Revenue is high as a ratio of the cost and expense of traffic - the traffic can and needs to be measure with RPM, CTR and RPC - the difference is the ratio is derived as a ratio of actual Revenue - and revenue is about the closest thing to money in this business

ROT bridges into the economic and financial world verses techie world. These acronyms are indispensable and comprise the variable that go into the ROT. The ROT, like ROI and ROE are measures from a financial or executive level where people don't have the patient, knowledge or training to point out the critical elements you adeptly illustrated


RPM (revenue per thousand impressions)
RPC (revenue per click)
CTR (click-through rate)

Thanks for the feedback

 

[dtobias]

Why else would someone buy a domain name - the feel ‘it is a money maker’

Lots of other reasons, actually... including vanity, ego, a belief that a particular name is the most logical identifier for a site... there's more to the Internet than making money.

 

[Onward]

delusional domainer? = dd?

I've created a new industry term..."dd"

 

[Andrew Shaw]

I dont think there is room in this forum to make fun of someone for their ideas. If you disagree, explain why. Talk is cheap Onward.

 

[RoToHead]

DTobias

thanks for the observation

Lots of other reasons, actually... including vanity, ego, a belief that a particular name is the most logical identifier for a site... there's more to the Internet [domaining] than making money.

In stocks everyone who is buying, believes it will go up, buys from a seller believing it is going down -


Onward - I "invented" an economic term "ROT" ...maybe I'm overly enthusiastic with a new insight, but not quite a delusional domainer... but someone will buy it...DelusionalDomainer.com - any bids yet?

thanks for the good reality check...

 

[Duckinla]

I'm not clear what you're trying to get to with ROT. Revenue Over Traffic sounds to me like revenue divided by traffic? Which would be RPV. Or are you just saying that revenue is more important than traffic? Which is completely arguable by the way.

 

[RoToHead]

Duck in LA
I have been looking at ways to quantify value, as one of the measures of DN/business price - I easily get taken by the excitement and potential of a new business or DN -
ROI is an accepted way to measure the 'return on what is invested' - it gives a number, like a per centage - the higher the number, the more money you make per dollar at risk or invested.

DN and domain value is way more complex with many different matrix are used to measure, and quantify the value.

Revenue Over Traffic is a similar ratio as ROI - the higher the number, the higher the value.

With banks "APR" has become almost a legal definition of interest rates so it allows for a real comparison of what you will earn or pay when choosing between financial options. To compare apples to macs.

If you can measure and demonstrate one DN is at 3.75 ROT and another at 7.50 ROT then you then can take some of the risk and gamble out of this process and improve your odds of picking a winner. The 7.50 ROT is worth more perhaps.
Volume of traffic is still a multipler.

There are certainly certain assumptions and standards that are the basis for such a comparison - ytbd

 

[Duckinla]

So what is the formula? That's the part I'm not clear on.

 

[denny007]

$7 per real customer is better than $0.70 even with the 10 X volume

Actually opposite is true. Its better to have 10 customers with $0.7 profit each than just one customer with $7 profit.

 

[Domagon]

It depends on what one is selling and the marketplace the business is trading in...

If it's a product / service that's recurring (ie. memberships, add-ons, refills, etc) then more customers (ie. the 10 x $0.7) is better ...

But if the product is more of a one-time purchase / difficult to sell, then fewer customers (ie. 1 x $7) is likely better.

A prime example of where less customers is typically better is advertising sales ... a relatively small number of large-spending advertisers is often better than a bunch of low-spending advertisers that frequently come and go.

Ron

 

[Onward]

I dont think there is room in this forum to make fun of someone for their ideas. If you disagree, explain why. Talk is cheap Onward.

Chill out big guy...I was not making fun of him...I was creating an industry term for domainers wanting 5 million dollars for esuperstoresnownet.com.

dd delusional domainers.

 

[Theo]

Exactly how does this qualify as a "legal issue" ?

 

[Andrew Shaw]

Chill out big guy...I was not making fun of him...I was creating an industry term for domainers wanting 5 million dollars for esuperstoresnownet.com.

dd delusional domainers.

Maybe I misunderstood what you were saying, and if so, I appoligize.

 

[Duckinla]

I'm still not clear what ROT means. Does it mean "Revenue divided by Traffic" which would be revenue per visitor, or does it mean "revenue is more important than traffic"?

 

[denny007]

Yeah me neither, let us know example ROT for a domain which has in one year:
50K visitors, 10K clicks $0.20 each

 

[Domagon]

Let's cut to the chase ...

* How many domains do you own?

* How many have you sold?

* How many have you bought?

* Have you earned a significant profit on multiple domain sales? -and/or currently earning much revenue from active websites with traffic?

Now to be fair, it's possible for one to come up with some new economic term / methodology without hands-on experience, but unless you're a professional economist (or some equivalent) with a public trackrecord (ie. articles, studies, etc), you're likely not going to get far with ROT; in my view is the wrong acroynm to choose anyways - to many, revenue over traffic just doesn't make sense.

Anyways, if you're serious, which it appears you are, then I'd suggest researching the domain name business (presumably that's why you're here ) and be more public about your real name, credentials, etc so as to build credibility, which greatly enhance your odds of being succesful in your endeavor.

Ron

p.s. not sure why underlining / bold, etc no longer work ... did DNF change something or is my user config messed?

 

[Duckinla]

"How many domains do you own" is the most insignificant question one can ask in this industry. Are you talking to a guy with Casio domains or Rolex domains.

I own 1400, but probably 1,000 won't get reregistered this year, but by then I may have 2400, but I would trade them all for 1 if the right opportunity presented itself.