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various Sold: YouConvert.com - $1,200.00

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BuyBrandWeb.com

Praveen ChidaboyinaTop Member
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Sold YouConvert.com for $1200 USD on Flippa with BIN.
Purchased by Zamzar.com

Acquired it for 390 USD + 14 USD renewal fee + 50 USD namebio promotion - $144 USD Flippa commission ;
1200-598 = $602 USD profit and 100% return
Hold time - 7 months.
 
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The views expressed on this page by users and staff are their own, not those of NamePros.
Sold YouConvert.com for $1200 USD on Flippa with BIN.
Purchased by Zamzar.com

Acquired it for 390 USD + 14 USD renewal fee + 50 USD namebio promotion - $144 USD Flippa commission ;
1200-598 = $602 USD profit and 100% return
Hold time - 7 months.

Your ROI% was actually 154% ($602 ÷ $390 = 1.54 x 100 = 154%).
 
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Your ROI% was actually 154% ($602 ÷ $390 = 1.54 x 100 = 154%).

Actually, it was closer to roughly 394% annualized since 154% was in 7 months ;)
 
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Actually, it was closer to roughly 394% annualized since 154% was in 7 months ;)

True, but an annualized ROI makes no sense here because the activity is not repeatable. You can only sell the domain name once and collect your proceeds once. You cannot repeat it every 7 months. Therefore, the 154% ROI still stands.
 
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True, but an annualized ROI makes no sense here because the activity is not repeatable. You can only sell the domain name once and collect your proceeds once. You cannot repeat it every 7 months. Therefore, the 154% ROI still stands.

1. Why can't you?

2. Even if it is not repeatable, why then to assume 0% return? Why not 10% gain or 50% loss? ;)
 
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Your ROI% was actually 154% ($602 ÷ $390 = 1.54 x 100 = 154%).

Would you elaborate on that, please, I don't get your math? He invested total of 598 $ on that domain, not 390 $, and earned net of 602 $. Hence 602 / 598 = ~100%.
 
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Would you elaborate on that, please, I don't get your math? He invested total of 598 $ on that domain, not 390 $, and earned net of 602 $. Hence 602 / 598 = ~100%.

Well, his original investment -- his basis -- was $390. Sure, you could add in the $14 renewal to make it $404. Everything else, the promotion fees and the commissions fees are "cost of sales". Those are artifacts of how he chose to sell the domain name, incremental costs he elected to spend to get the domain name sold. He need not have incurred those expenses to sell the domain name -- he could have chosen another way, perhaps a free way. Meanwhile, his investment in the name remains $390 (or, $404).

So, perhaps the ROI% is thus (Sales Price - Cost of Sales - Investment) ÷ Investment; or, ($1,200 - $194 - $404) ÷ $404; or, $602 ÷ $404 = 149%.
 
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True, but an annualized ROI makes no sense here because the activity is not repeatable. You can only sell the domain name once and collect your proceeds once. You cannot repeat it every 7 months. Therefore, the 154% ROI still stands.

I think annualized ROI makes sense for a full time domain investor.

Would you prefer a 250% profit in 2 years holdtime over a 100% profit in three weeks holdtime just because ROI is more in first case?

Who said it is not repeatable? For a full time domain investor it is indeed repeatable. Once we get our cash back, we can buy more domains and repeat.
 
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