1 hypothetical situation

[seamaster]

If i buy a domain, hmmm....lets say www.guy.com for $150k today, its getting no traffic and no revenue. I worked on it and stretched the traffic to high point and thus as a result income goes to say 2000 USD/mth. now after 1 year guy.com is earning $2000/mth and i want to sell it, then how its price would be calculated....

premium name + natural price increase

or

premium name + natural price increase + monthly income (but how)

appreciate your thoughts.

 

[HappyBunny]

Formula #2, of course.

But to answer "how", it depends on your business model (how you generate the income). If no additional work is required to maintain the income, it will sell for much higher compared to if it requires constant work to keep the traffic

 

[lzy]

Depending on the name, you could go something like 10 years revenue.

 

[PowerUp]

Depending on the name, you could go something like 10 years revenue.

Assuming he bought the domain at $150k with $0 income. Now assuming he worked on it until his income is $500 a month. So 10 years revenue is $72k. Surely it should be worth more than that?

I think the domain value should be = market value of domain without development + Y years revenue.

 

[-REECE-]

I think it would really depend on both the generic domain in question and the amount of monthly revenue.

A real enduser (the guys who buy these kind of domains much more frequently than other domainers) aren't likely to give a damn how much it earns.

A domainer on the other hand would likely appreciate being able to earn some passive income while attempting to sell it and would likely factor that into his purchase price.

For most premium generics, you're going to have to do a pretty good job developing to make more money than it'll make parked.

$2000/month from nothing sounds great, but realistically speaking, how many domains sell for $100k+ and receive no or little traffic?

If i buy a domain, hmmm....lets say www.guy.com for $150k today, its getting no traffic and no revenue. I worked on it and stretched the traffic to high point and thus as a result income goes to say 2000 USD/mth. now after 1 year guy.com is earning $2000/mth and i want to sell it, then how its price would be calculated....

premium name + natural price increase

or

premium name + natural price increase + monthly income (but how)

appreciate your thoughts.