Investment Expectation

[rmacdon]

Hi Folks,

Looking for your thoughts on this.

Is it possible to buy 1 domain for $10,000.00 that generates $1,000.00 per year? I have yet to see it based on the following:

- no TM
- no TYPO
- safe and constant type in traffic
- ppc or ppa
- no porn
- no gambling

Thanks,
Rob

 

[Biggie]

your multiple of 10yrs rev on a domain that fits such criteria....would be the minimum to even consider

especially since you want the traffic to be consistent.

but who's to say the name won't make 1200 the next yr and 1500 the yr after

or if the name was making 800 a few years before you found about it, then when you did it had made $1k the previous yr?

when you add those if's, then the multiple grows


said all that to say, yeah i think there are some out there, but $10k won't get it

maybe go for one that is making $500 a yr and hope it's on the upswing

 

[BostonDomainer]

Well I once purchased a domain name on the aftermarket for $1,000 and sold it the same week for $11,000. So the numbers are very similar yet same conceptually. (I've never been a multiplier paradigm.. but I digress) Strict ROI imoh it is not possible however plausible it may seem it is lacking.

 

[rmacdon]

I was thinking purely buy and hold strategy, not really flipping domains -

I do agree, it is getting much more difficult to get a 10% (safe) return without development, although development moves towards unsafe.

At 500 a yr, the ROI is only 5% (yikes) considering a bond fund can almost get you there and definitely a basket of good dividend stocks.

 

[DomainMagnate]

It's possible, the main problem is you can never be sure that the revenue stays stable. 10 years is a long time in Internet years. I think the risks (and rewards too) in any long term internet based investments are way too higher than in traditional investments, like bonds, stocks, or real estate.

 

[Biggie]

I was thinking purely buy and hold strategy, not really flipping domains -

I do agree, it is getting much more difficult to get a 10% (safe) return without development, although development moves towards unsafe.

At 500 a yr, the ROI is only 5% (yikes) considering a bond fund can almost get you there and definitely a basket of good dividend stocks.

if you're thinking buy and hold


then i suggest you scale down to a few $100 > $300 a yr domains


less risk, less expense and over time, you can use some of that income to purchase more names

 

[Gerry]

less risk, less expense and over time, you can use some of that income to purchase more names

I like the handregs or drops that make a thousand a year.

WOOHOO!