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I'd have to agree with DomainBuyerBroker. Quantity is a risky game at this point. If all your eggs are invested in domains that just barely eek out a profit during the year and can't really be developed as standalone Web sites - what will you do if the PPC income decreases or next year?
What will you do if domain renewal fees increase by $1 or $2? What will you do if the traffic to 20 percent of your names dries up because they never had stable organic traffic to begin with?
You're going to watch your income stream dry up and be left with assets that are worthless. Nobody (that's smart) is going to buy 3 word or 2 word domains that make little sense, little money and have no development potential.
I always look at things three ways when I sort through names:
1. Which names are strict PPC revenue plays.
That's to say which names generate earnings but have limited development potential and little resale value. These are the names you collect for your monthly income stream and these are the ones you can tap into and sell based on PPC multiples if times get tough or if you need to reallocate funds.
2. Which names are strict development plays.
Believe it or not there are plenty of names that make next to nothing when parked, but make a boat load of money with just a little investment of time, content and design. These are the names you sell beyond PPC multiples to someone else who can develop the name.
3. Which names have it all?
These are the best of the best and the gems that I value the most. These names have good and steady traffic, ppc earnings and lots of development potential. They are worth much more than the 8-12x annual revenue offers that many domain investors will offer you. These are the names you hold on to as long as you can or until you get a very worthwhile offer.
What will you do if domain renewal fees increase by $1 or $2? What will you do if the traffic to 20 percent of your names dries up because they never had stable organic traffic to begin with?
You're going to watch your income stream dry up and be left with assets that are worthless. Nobody (that's smart) is going to buy 3 word or 2 word domains that make little sense, little money and have no development potential.
I always look at things three ways when I sort through names:
1. Which names are strict PPC revenue plays.
That's to say which names generate earnings but have limited development potential and little resale value. These are the names you collect for your monthly income stream and these are the ones you can tap into and sell based on PPC multiples if times get tough or if you need to reallocate funds.
2. Which names are strict development plays.
Believe it or not there are plenty of names that make next to nothing when parked, but make a boat load of money with just a little investment of time, content and design. These are the names you sell beyond PPC multiples to someone else who can develop the name.
3. Which names have it all?
These are the best of the best and the gems that I value the most. These names have good and steady traffic, ppc earnings and lots of development potential. They are worth much more than the 8-12x annual revenue offers that many domain investors will offer you. These are the names you hold on to as long as you can or until you get a very worthwhile offer.