domain Donations COMmerce and ORGanization

[Keith]

Hi folks,

We are planning to develop Donations.COMmerce. The plan is to offer a bit of equity in the company for an up front investment. At this point we have to value the company based on the domains only. How much would y'all value the pair of domains?

Donations dot COM
Donations dot ORG

Thanks!

 

[Keith]

Opinions on this pair of gems?

 

[PeppyNames]

I believe in the range of $XXXXXX

 

[DU]

Hi folks,

We are planning to develop Donations.COMmerce. The plan is to offer a bit of equity in the company for an up front investment. At this point we have to value the company based on the domains only. How much would y'all value the pair of domains?

Donations dot COM
Donations dot ORG

Thanks!

I'm not sure what equity you have with just domain names and I don't think it's the proper way to value the business as ultimately, if it's the most valuable thing on your books you're not doing something right. It's also tough because it's not obvious (to me at least) how to successfully commercialize a ventures that focuses on such a positive humanitarian cause type name. There is a LOT of focus on the "return on donation" at the moment.

I always think the singular is better than the plural in almost all cases (with some exceptions) but in this case it's not that much of a factor to me. Donations = Donation.. or at least you would be looking for repeat donation.

As far as value? To me it's a crap shoot once you get into good names and you're out of my league with this one.

There are probably better names sold for less and worse names sold for more but assuming a decent business plan, assuming a credible line of credit and for "balance sheet" purposes.

I would say $150,000 using the 25-75 rule for the .com and $200,000 the pair but I don't see the sense in splitting them - ever.

Personally? I think, depending on what you're doing, the .org could be the better base name to use. I think it has less value empty but it is the better and more suitable actual use. Having the pair is pretty awesome though - especially if you're plan is to do a wordpress/cloudstack type deal with the commercial/org as separate but joined ventures.

I did use "payments" as a reference because it's a comparable term / value and that sold for $150,000 a few years back. I believe it's potentially more commercial but there is likely some market uptick to offset that. The trick is that you are using this as equity. To get a decent site going (worthy of the name) - I think you're looking at $50K and that would be what 20-33% of what I have as equity valuation so I hope you have some other source of finance. If it's really a valuation for equity partnership I'd aim higher but have worked on a correspondingly solid business plan.

Anyone investing solely on name is going to seek almost full value, imho. That is 100% ownership of name with a buy-back clause timeframe and 10% royalty in perp or something like that. Never invest in someone elses dream.


This might get the discussion going :imho:

I'm totally open to being way wrong on this one.:lol:

 

[Keith]

I'm not sure what equity you have with just domain names and I don't think it's the proper way to value the business as ultimately, if it's the most valuable thing on your books you're not doing something right. It's also tough because it's not obvious (to me at least) how to successfully commercialize a ventures that focuses on such a positive humanitarian cause type name. There is a LOT of focus on the "return on donation" at the moment.

I always think the singular is better than the plural in almost all cases (with some exceptions) but in this case it's not that much of a factor to me. Donations = Donation.. or at least you would be looking for repeat donation.

As far as value? To me it's a crap shoot once you get into good names and you're out of my league with this one.

There are probably better names sold for less and worse names sold for more but assuming a decent business plan, assuming a credible line of credit and for "balance sheet" purposes.

I would say $150,000 using the 25-75 rule for the .com and $200,000 the pair but I don't see the sense in splitting them - ever.

Personally? I think, depending on what you're doing, the .org could be the better base name to use. I think it has less value empty but it is the better and more suitable actual use. Having the pair is pretty awesome though - especially if you're plan is to do a wordpress/cloudstack type deal with the commercial/org as separate but joined ventures.

I did use "payments" as a reference because it's a comparable term / value and that sold for $150,000 a few years back. I believe it's potentially more commercial but there is likely some market uptick to offset that.

The trick is that you are using this as equity. To get a decent site going (worthy of the name) - I think you're looking at $50K and that would be what 20-33% of what I have as equity valuation so I hope you have some other source of finance.


This might get the discussion going :imho:

I'm totally open to being way wrong on this one.:lol:

Wow thanks for the opinion!

6 figures has been rejected for the .com only. We already have a development plan which is along the lines of kickstarter. However, users can ask for anything under the sun. Maybe you need cash, furniture, clothing, car...whatever.

This will be a for profit site.

 

[DU]

Wow thanks for the opinion!

6 figures has been rejected for the .com only. We already have a development plan which is along the lines of kickstarter. However, users can ask for anything under the sun. Maybe you need cash, furniture, clothing, car...whatever.

This will be a for profit site.

You missed my edits but you're welcome. I hope others might contribute now too with a little more than the usual XXXXXX or regfee

The 25-75 rule is typical estimate saying that the range would be 25% less or up to 75% more... in case you're not familiar with it.

 

[Keith]

You missed my edits but you're welcome. I hope others might contribute now too with a little more than the usual XXXXXX or regfee

The 25-75 rule is typical estimate saying that the range would be 25% less or up to 75% more... in case you're not familiar with it.

Thanks again!

We have a solid biz plan and vision for the site. The biggest hurdle is the fact that we have no ability to maintain the site unless we hire someone or pay for support. It would be ideal to build the site and then go after investors. No reason we can't grow to millions in revenue in quick fashion.

 

[.NJ]

I did use "payments" as a reference because it's a comparable term / value and that sold for $150,000 a few years back. I believe it's potentially more commercial but there is likely some market uptick to offset that. The trick is that you are using this as equity. To get a decent site going (worthy of the name) - I think you're looking at $50K and that would be what 20-33% of what I have as equity valuation so I hope you have some other source of finance. If it's really a valuation for equity partnership I'd aim higher but have worked on a correspondingly solid business plan.

This is correct.

The name obviously has substantial value (six figs), but the profit would depend on what was actually paid for the name.

Now if your talking about major development for the name, things could go two different ways.

It takes money to make money, and the initial investment for the name will play a huge part.

Paying 50K (example) for a name, and then putting 50K into development puts you at 100K total investment.

Having a bad idea and plan for the name will set you back at 50K in the negative.

Having a good idea and plan of attack could and should produce 100+ times your initial investment and an on-going revenue stream.

The money adds up very fast with a good start-up and will take some time to get back. But what you put into it, you will get back out.

I have been involved in my start-up for over a year now, and it's def been a crazy ride (but well worth it).

Im sure your idea is solid and on well on target. Just keep certain things in mind during your journey.

Good Luck!

 

[Keith]

This is correct.

The name obviously has substantial value (six figs), but the profit would depend on what was actually paid for the name.

Now if your talking about major development for the name, things could go two different ways.

It takes money to make money, and the initial investment for the name will play a huge part.

Paying 50K (example) for a name, and then putting 50K into development puts you at 100K total

Thanks and yes we will spend what it takes to build a great site. Otherwise it's not worth doing. Fortunately for us, the development cost is all we will have invested. But then again we already have at least one developer willing to build it for very little equity. What we really need is operating cash! Similar sites I've looked at have teams of people running the show. It's tricky to get this going but we're very excited to see where it leads!

 

[clearskies]

Thanks again!

We have a solid biz plan and vision for the site. The biggest hurdle is the fact that we have no ability to maintain the site unless we hire someone or pay for support. It would be ideal to build the site and then go after investors. No reason we can't grow to millions in revenue in quick fashion.

Great, cracking name, good luck with it. But I hope your slice of those "millions in revenue" isn't too big.
Jay