- Joined
- Jul 10, 2007
- Messages
- 1,537
- Reaction score
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SEX.com fiasco is not unexpected...
It was reported here at DNF 2 years ago that at that price level and that biz model the deal
is not sustainable.
Here's the link:
http://www.dnforum.com/f250/domain-names-portfolio-management-theory-thread-286221.html
Star Performers
It turns out that one doesnât need star-quality domains to make a decent living. As a matter of fact, some of the stars can literally kill your business.
Letâs take a look at the financial workings of sex.com. This domain was purchased for $12,000,000 with a commercial rate loan at 11.75%/10 year.
At this rate the sex.com owner has to pay $170,435 in monthly payments. It was reported that sex.com attracts close to 3,000 visitors a day, with half of those converging. Several years ago the adult industry was paying publishers anywhere from $2 to $5 per visitor. These days the numbers are $0.25 to $2.00. Assuming sex.com is getting the top dollar we get
3000 x $2 x 30 days x 50% = $90,000 estimate.
$170,435-$90,000= $80,435 shortage!
Yes, there is a good chance that another shmuck will come along and shell out $25 million for this domain and rescue the current owner. Meanwhile, the sex.com owner is bleeding.
It was reported here at DNF 2 years ago that at that price level and that biz model the deal
is not sustainable.
Here's the link:
http://www.dnforum.com/f250/domain-names-portfolio-management-theory-thread-286221.html
Star Performers
It turns out that one doesnât need star-quality domains to make a decent living. As a matter of fact, some of the stars can literally kill your business.
Letâs take a look at the financial workings of sex.com. This domain was purchased for $12,000,000 with a commercial rate loan at 11.75%/10 year.
At this rate the sex.com owner has to pay $170,435 in monthly payments. It was reported that sex.com attracts close to 3,000 visitors a day, with half of those converging. Several years ago the adult industry was paying publishers anywhere from $2 to $5 per visitor. These days the numbers are $0.25 to $2.00. Assuming sex.com is getting the top dollar we get
3000 x $2 x 30 days x 50% = $90,000 estimate.
$170,435-$90,000= $80,435 shortage!
Yes, there is a good chance that another shmuck will come along and shell out $25 million for this domain and rescue the current owner. Meanwhile, the sex.com owner is bleeding.