domain godfather.com

[katya]

Please valuate www.godfather.com

PR3, currently it's without content

Thank You

 

[BigCharlie]

You still don't get it. That's why you probably will never have these names. People put money in savings accounts and get 4 percent. If you invest 400K in Godfather.com you will earn 18K per year and that equates to a 4.5 percent return if the revenue never increases.

Some people believe in the future of domain names and some people don't. Those that do have an understanding of what is going on understand the above equation while those that do not understand the time value of money and/or do not believe in the future of domain names are often perplexed. Those same people probably bought Internet stocks at 200 times earnings and probably shy away from the pricey dotcoms so they can build a portfolio of names in extentions no business cares about and most people never heard of. It's not real hard to figure out.

 

[GiddyUp]

katya - do you want to tell everyone how much you paid for it? :hehe:

 

[briman1970]

You still don't get it. That's why you probably will never have these names. People put money in savings accounts and get 4 percent. If you invest 400K in Godfather.com you will earn 18K per year and that equates to a 4.5 percent return if the revenue never increases.

Some people believe in the future of domain names and some people don't. Those that do have an understanding of what is going on understand the above equation while those that do not understand the time value of money and/or do not believe in the future of domain names are often perplexed. Those same people probably bought Internet stocks at 200 times earnings and probably shy away from the pricey dotcoms so they can build a portfolio of names in extentions no business cares about and most people never heard of. It's not real hard to figure out.

You're right... it's not very hard to figure out.

If I had $100,000 to spend on domains, I would never work again. I can find revenue portfolios and single names all day long for 18-24 months revenue. They wouldn't be near as "pretty" as Godfather.com, but I could care less. If pp-underwear-forsale.com makes $100 per month and the traffic is stable and verifiable, I would jump on it for 18 months revenue and seriously consider it for 24 months worth. I could easily locate/buy a buttload of such names for $100,000. My return on the investment would be $5,000 a month... a whopping 60% return per year! Plus, I'd be in the clear in 2 years or less! I would be a fool to purchase a $1,500 per month revenue domain for that kind of money, much less $400,000!!! If I had $400,000 to spend on domains, I wouldn't. I would purchase a well-established business (with website and staff), sit on my hiney and change my name to Count De Money.

 

[gou]

If you invest 400K in Godfather.com you will earn 18K per year and that equates to a 4.5 percent return if the revenue never increases.

That's not 4.5% return; it's 4.5% AFTER 22 years.
There is no way GodFather.com is worth even near 400M.
I am a partial owner of a company that owned Vancouver.com, and we sold that one for $123,800.

 

[BigCharlie]

You gave Vancouver away. 18K per year income from a 400K investment is roughly 4.5 percent return per year. The reason I gave the example is to show that it still made sense at 400K, let alone 10K where some people appraised it at. But why should I teach those who don't want to be taught? After all, you can give away a name like Vancouver.com, you can also register free .infos of words you can't pronounce. There is room for everyone to get lost. I don't own Godfather, but like I said before, if you list the name with a BIN in the low XX,XXX you will see how awful those appraisals are.

 

[Devil_Dog]

That's not 4.5% return; it's 4.5% AFTER 22 years.
I am a partial owner of a company that owned Vancouver.com, and we sold that one for $123,800.

You all got hosed!

Buyer was probably laughing all the way too the bank.

 

[briman1970]

You gave Vancouver away. 18K per year income from a 400K investment is roughly 4.5 percent return per year. The reason I gave the example is to show that it still made sense at 400K, let alone 10K where some people appraised it at. But why should I teach those who don't want to be taught? After all, you can give away a name like Vancouver.com, you can also register free .infos of words you can't pronounce. There is room for everyone to get lost. I don't own Godfather, but like I said before, if you list the name with a BIN in the low XX,XXX you will see how awful those appraisals are.

Although I agree with your opinion concerning the nonsense appraisals that many NP newbies tend to post, I disagree that Godfather.com makes sense at $400K. It may make sense at $100K to an end-user with deeeeeeep pockets, but $400K to someone as a financial investment? Oh my gaaaawd!!! :yell:

 

[gou]

You all got hosed!

Buyer was probably laughing all the way too the bank.

Not really, travel is a tough business. Our gross profit margin was very small.

 

[verbster]

This is an interesting discussion on domain values and philosophy, but I'm curious about the acquisition. Katya, do you own this name? Did you buy it in 2001 like whois says (expires in 2012)? If so, how did you get it? If it's making $1500/mo with simple parking, imagine what it could make...Did you ever try? So many questions....

 

[DomainersEdge]

I'm the actual owner of godfather.com. Katya works with me. I really appreciate this conversation string and I agree with verbster that this is a very interesting discussion on domain valuation philosophy. We own a lot of domain names but this is probably the premier name in the portfolio. I am a sedoPro member already (thanks for those who sent Katya invitations via PM) but haven't done anything other than the basic parking with this or any of our other domains.

Any suggestions on what should be done with this domain? Is anyone out there particularly good at taking a killer domain and squeezing out a lot more revenue? If so, I'd certainly be interested in talking with them.

Just to add my two cents on the valuation philosophy... For me, the most important factor (although certainly not the only factor) is sustainability of traffic. There are domains which produce a good amount of residual traffic because of LP. These domains can be valuable, but it is likely that the traffic from these domains will decrease over time and making any kind of long term bet (even 12-18months) is a bit risky. On the other hand, domains which produce traffic due to direct navigation (like godfather.com) have significant innate value. Traffic 'should' grow over time, not shrink.

 

[Jo]

Excellent reading, it has inspired me to think bigger.

 

[briman1970]

I'm the actual owner of godfather.com. Katya works with me. I really appreciate this conversation string and I agree with verbster that this is a very interesting discussion on domain valuation philosophy. We own a lot of domain names but this is probably the premier name in the portfolio. I am a sedoPro member already (thanks for those who sent Katya invitations via PM) but haven't done anything other than the basic parking with this or any of our other domains.

Any suggestions on what should be done with this domain? Is anyone out there particularly good at taking a killer domain and squeezing out a lot more revenue? If so, I'd certainly be interested in talking with them.

Just to add my two cents on the valuation philosophy... For me, the most important factor (although certainly not the only factor) is sustainability of traffic. There are domains which produce a good amount of residual traffic because of LP. These domains can be valuable, but it is likely that the traffic from these domains will decrease over time and making any kind of long term bet (even 12-18months) is a bit risky. On the other hand, domains which produce traffic due to direct navigation (like godfather.com) have significant innate value. Traffic 'should' grow over time, not shrink.

As I said earlier in the thread, were the domain name mine, I'd develop a slick site containing info on crime bosses past & present, living & dead. With that kind of natural traffic, Adsense should bring in just as much revenue as Sedo parking provides, or more. TM issues should be minimalized as well, because you're using the generic term as your base of content.

I agree that buying linkpop domains is a somewhat risky business. That's why buying a large variety of well-researched names is important. I've won some and lost some (the largest to the City of Paris, AAARGGGHH). My portfolio revenue grows on some names and shrinks on some, but I'm making a lot less mistakes than when I started this crazy game.

I have domains that are type-in and lots of LP domains as well. I easily get the uniques that you do and after all the sales and revenue I've made, I'm riding on about a $600 investment. I make $200+ per month which, right now, is a massive 400% return per year. Plus, I will be riding free in 3 months. By then I believe my traffic and rev will still produce $200 a month. Now I just need to do this about 20 times over. After reg fees, I'll be making in a year what you make in a month :o but I'm having fun and learning more all the time!

Although the days of straight reg'ing a name that gets 1000's of type-ins from day one are over, there are still names with pure type-in traffic available for reg fee. I just reg'd 3 names that should get around 200 uniques per month as a group. I understand that this is nowhere near 15,000, but 50 more like this and I've got a great "direct-navigation" portfolio as long as there are clicks to go with the traffic.

Now go and develop that name so we can all take a gander!

 

[BigCharlie]

If this sale is legitimate, and it looks like it is, then it sure puts into perspective the low price on the Vancouver sale. Of course, no mention of traffic stats or revenue was discussed in the article....because it doesn't matter with these types of names.


Branson.com domain sells for $1.6M
St. Louis Business Journal - 1:36 PM CDT Tuesday
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In the third highest-priced domain sale of the year, Larry Milton bought the domain name Branson.com for $1.6 million in cash.

For publicly reported domain name sales, Branson.com drew the third-highest price paid for a domain in 2006, the 21st most expensive of all time and the highest price ever paid for a city site, according to a release.



The site is meant to give tourists information on Branson, Mo., a city located more than 250 miles southwest of St. Louis that attracts more than 7 million visitors annually, the release said.

Branson.com has not changed hands since its initial registration in 1995.

Larry and his wife Lianne Milton, bought the domain name from the original registrar, Groman Enterprise, based in Hollister, Mo.

Financial details of the transaction were not disclosed, but Larry Milton told the St. Louis Business Journal that part of the $1.6 million cash deal went to pay off an option from a third party.

According to a release, Larry and Lianne Milton of Branson bought the site in February 2006.

New owner Larry Milton said in a statement, "With a destination site like Branson.com, we thought it only fair and right that it be a Web site that represented Branson and a source of information about our city. Our focus from the very beginning was to make this a community and tourist-driven site that would benefit everyone."

 

[matt_bodis]

I'll give $20,000 for this domain if interested.

I mean, look at my avatar.

 

[snoop]

That's not 4.5% return; it's 4.5% AFTER 22 years.
There is no way GodFather.com is worth even near 400M.
I am a partial owner of a company that owned Vancouver.com, and we sold that one for $123,800.

I'm convinced this gou person has nothing to do with the seller or vancouver.com after reading these comments in dnjournal,

"A day after posting this report we learned from David Jeffs at Communicate.com Inc. that there is more to the Vancouver.com sale than meets the eye in the SEC filing. Mr. Jeffs told us that the original deal for the domain was a lease to own contract crafted in 2001. It called for 5 annual lease payments of 50,000 Canadian dollars, with a final purchase payment of 150,000 Canadian in 2006 (the $123,000 referenced in the 10Q report). In prior years, those 50,000 CAD payments were shown on the books as lease payments. All told, Communicate.com received 400,000 Canadian for use of (and finally sale of) the domain over the past 5 years. Mr. Jeffs added that they Communicate.com Inc. not have made the same deal today."

 

[gou]

I'm convinced this gou person has nothing to do with the seller or vancouver.com after reading these comments in dnjournal,
*artical*

I am already aware of this as Adam (communication director) already explained the situation. However, to add cogency to my argument (or to exaggerate my point), I disregarded the sale agreement. In Q1 2006, the domain was sold and revenue of $123,800 was recorded. Nothing specific is disclosed in the 10Q filed with the SEC.
Even to say that over the course of five years, Vancouver.com was worth 400,000 CAD, that further proves the point that GodFather.com is not worth $400M.

 

[snoop]

I am already aware of this as Adam (communication director) already explained the situation. However, to add cogency to my argument (or to exaggerate my point), I disregarded the sale agreement. In Q1 2006, the domain was sold and revenue of $123,800 was recorded.

You obviously have no idea what you are talking about since you've just taken the sale price that was listed in a press release (which the company ackowledged was not an accurate reflection of the agreement), please spare us all the big noting and name dropping.

 

[gou]

You obviously have no idea what you are talking about since you've just taken the sale price that was listed in a press release (which the company ackowledged was not an accurate reflection of the agreement)

What press release?
I was referring to the official Form 10Q filed with the Security and Exchange Commission under Section 15(d) of the Securities Exchange Act of 1934. This was the OFFICIAL sales price and I have already told you why I used this figure rather than getting into the sale agreement.

 

[snoop]

This was the OFFICIAL sales price and I have already told you why I used this figure rather than getting into the sale agreement.

If you truly knew about the rest of the agreement then it is totally misleading of you to present the $123k figure as the purchase price in your inital post when it has been clearly stated by the company the deal involved 5 annual lease payments plus a final payment for ownership of $123k (a deal which was initated 5 years ago). The 123k is a residual payment, not the full price for the domain.

Perhaps you can state your exact connection to the company since you claim to be "a partial owner", are you an director, employee or merely someone who was bought some shares on the open market?

 

[matt_bodis]

He probably doesn't even own the domain whatsoever.