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How much are you willing to pay for traffic with revenue domains?

Located in Domain Parking and Traffic Monetization started by biggie, Nov 5, 2012.

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  1. biggie

    biggie Top Member VIP ★★★★★★★★★★

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    :talk:

    Hi All

    started this thread because i've seen some new posts in domains wanted section recently, where members are seeking such names.


    you will have to offer more than $$ > $$$ to get decent submissions


    example:

    if i have a domain making $2 a month, do you think i'm going to sell it to you for 2 years revenue or $50?

    in fact an offer like that is lower than what you would pay if bidded for at namejet.



    or a domain making $10 a month, do you think i'll sell for $300

    absolutely not...unless, i'm clueless!

    so...if you want these type of domains, that have been "pre-screened" by their owners, then increase your budgets and maybe you'll get better submissions.

    :)

    Good Luck!
     
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  2. biggie

    biggie Top Member VIP ★★★★★★★★★★

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    :talk:


    uppin for those who missed it!
     
  3. equity78

    equity78 Top Member TLDInvestors.com TheDomains Staff PRO Gold Account VIP ★★★★★★★★★★

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    It is what they are looking for Biggie, I have seen many posts and also gotten some private offers where its just about 18 to 24 months, less if its a tm typo.

    Domains Wanted really could be renamed Fantasy Island, we get a little Tattoo scream Domains,Domains instead of the plane, the plane.
     
  4. m-i-k-e

    m-i-k-e Top Member PRO VIP

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    It all depends on the source of the revenue. I'd be a fool to pay 2 years revenue for a crappy domain with old backlinks that are earning money today but will likely dry up in a few months.

    Not all 'revenue' domains are created equal.

    It's not just buyers that need to be realistic.
     
  5. equity78

    equity78 Top Member TLDInvestors.com TheDomains Staff PRO Gold Account VIP ★★★★★★★★★★

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    Where I agree MIKE with what you said, the buyers are the one's asking to see inventory the domains usually were not listed for sale. The seller would be foolish not to maximize whatever revenue he or she is making currently, all the seller can focus on is now.
     
  6. oldtimer

    oldtimer Do some good for humanity and the environment VIP ★★★★★★★★★★

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    In my opinion if someone demands to get more than 24 months revenue for a domain then they should be willing to provide some kind of a guaranty for that domain. at least 12 months guaranty that the traffic won't disappear overnight (or diminish by more than a certain percentage).

    Those who are experts in traffic domains should put their minds together and come up with a standard guaranty that can work for all legitimate traffic domain transactions. IMO
     
  7. m-i-k-e

    m-i-k-e Top Member PRO VIP

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    Ya, really it's a bit of a balancing act of when to ride the revenue and when to cash in. 2 years revenue is actually a nice option to have with many names in my opinion as a lot can happen in two years, backlinks are removed, names get banned from ad feeds etc... guaranteeing that 2 year revenue right now can be a good option for some.

    I understand what you're saying that it is the buyer asking to see the names. I get frustrated reading many wanted posts as well, in this case though there are names that fit the bill and will change hands. Of course there are still other revenue names that can justify a higher asking price.
     
  8. equity78

    equity78 Top Member TLDInvestors.com TheDomains Staff PRO Gold Account VIP ★★★★★★★★★★

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    That would be interesting oldtimer. Some kind of standards or guidelines could raise multiples, but I think when you talk to the experts or bigger traffic guys, they are looking for 15 years multiple which is what I think is Biggie's point. I don't think Rick Scwhartz is selling traffic at 24 month revenue price.

    @mike right, sometimes a name gets hot and the owner does some research and they do know that traffic will dry up way before 24 months. So ethics come into play too.
     
  9. m-i-k-e

    m-i-k-e Top Member PRO VIP

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    It sounds like we are talking about two totally different types of revenue domains.

    I'm talking about expired domains that have residual traffic from being previous sites. The decision of whether to buy, sell, or hold isn't an ethical one for me, it's a matter of how comfortable I am with holding the risk. Maybe, I just don't have the skills/knowledge to understand exactly what will happen with these kinds of names, but for me the decision is made on the fact that I don't know 100% what the future holds for that traffic and it comes down to how much risk I want to carry.

    ** I'm running on an hour and a half sleep... going to bed now in the middle of the day. Good chat, will check back later.
     
    Last edited: May 20, 2013
  10. oldtimer

    oldtimer Do some good for humanity and the environment VIP ★★★★★★★★★★

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    That’s why I said that there should be a guaranty if someone demands to get more than 24 months revenue for a domain, for all other types of traffic domains the 6 to 24 month revenue model should work okay considering that both the buyer and seller understand and share the risks. IMO
     
  11. equity78

    equity78 Top Member TLDInvestors.com TheDomains Staff PRO Gold Account VIP ★★★★★★★★★★

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    Oh I was just talking about all kinds, I meant some are event driven like it was similar to a tv show and the show is cancelled the traffic won't last. On the backlinks you are right its a guess a lot of the time. I know Smurge says he does well with old backlinks.
     
  12. biggie

    biggie Top Member VIP ★★★★★★★★★★

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    :talk:

    I should have been more clear in initial post


    i'm basically talking about "type-in traffic", because that's all I've ever held.

    I don't buy link or expired website traffic names, per se`

    :talk:

    I don't demand anything, I just don't sell unless price meets my expectations.

    we don't offer any written guarantee's, but "my rep is my bond" and no buyer has ever came back to complain about a traffic name I sold them.


    the difference in the names I try to acquire is, not only do they produce traffic, but the terms that make up the domain have value in their own right, irrespective of the traffic.


    long term investors see the potential and value, flippers don't.

    imo...
     
  13. oldtimer

    oldtimer Do some good for humanity and the environment VIP ★★★★★★★★★★

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    My post wasn’t directed at you in specific. :)

    It’s kind of like buying diamonds, once you get to the higher level of quality and price people usually demand some kind of a guaranty. As you already know there is a lot of difference between domains that have steady natural type in traffic and all the other kinds that are out there. In my opinion someone asking 60 months of revenue (like it was in the old days) should provide some kind of a guaranty for the domain. IMO

     
  14. baseballworld

    baseballworld Restricted VIP ★★★★★★★★★★

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    Just shoot for the domains that are mainly direct type in traffic with consistent proven results.
     
  15. biggie

    biggie Top Member VIP ★★★★★★★★★★

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    :talk:
    I know :)

    in the "old days' the overture keyword tool was the guarantee.


    :)
     
  16. Kenny

    Kenny Member Services, NamePros Super Moderator Gold Account VIP ★★★★★★★★★★

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    And who doesent miss that?

    Peace,
    Cy
     
  17. Sam

    Sam Top Member VIP ★★★★★★★★★★

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    I lived off that baby overture tool. Man was that panning for gold :snaphappy:
     
  18. oldtimer

    oldtimer Do some good for humanity and the environment VIP ★★★★★★★★★★

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    I think one the reasons that caused overture tool to end were all the automated queries that were being sent by domainers all at the same time every month when the new numbers came out. :]
     
  19. namemarket

    namemarket Top Member VIP ★★★★★★★★★★

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    Instead of basing a sale mostly on X times revenue it makes sense to look at the stats and the percentage of direct navigation on the theory type-in traffic will more or less continue about the same whereas revenue data can be variable by comparison and also more likely to decline.

    For example, a good keyword name with 40% type-ins may be worth say 5k including intrinsic value, with 60% type-ins about 10k and 80% type-ins 15k, etc. P.S. There are surprising numbers of domains with over 80% direct navigation, ranging up to 90% plus, especially long-tail multi-word keywords in the financial markets, money-matters, or health and wellness niches.
     
  20. biggie

    biggie Top Member VIP ★★★★★★★★★★

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    :talk:


    and the same thing is being done with adword tool


    which is why G is now transitioning a switch-a-roo on that.


    it appears to me, that domainers in general, have gotten to a point where they rely on a tool to give them illusion of something comparable to ovt in some way.

    it's how the masses maintain the d2d marketing.

    but i still want 10 years rev for the ovt names i got

    :)
     
  21. oldtimer

    oldtimer Do some good for humanity and the environment VIP ★★★★★★★★★★

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    I might be interested in buying some real traffic domains if I can sell one of my hand regged domains in the five figures. :)
     
  22. biggie

    biggie Top Member VIP ★★★★★★★★★★

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    upping this thread, because I need 60 months to sell/
     
  23. equity78

    equity78 Top Member TLDInvestors.com TheDomains Staff PRO Gold Account VIP ★★★★★★★★★★

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    This was a good discussion Don. You are looking for 60 months on all your names, thought you were at like 10 years revenue ?
     
  24. biggie

    biggie Top Member VIP ★★★★★★★★★★

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    Hey equity8

    60 months or 5 years, is a good starting point for an opening offer.

    give me a 10 year offer and I know you're really interested in buying.

    seriously though, a domain that makes $1 a month is surely worth more than $60 or even $120.

    what you think?

    :)
     
  25. Hypersot

    Hypersot Top Member VIP

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    Just wanted to say... thanks biggie for this very..very informative thread ;)
     

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