.tv If you have a domain like Contractor.TV, does the domain increase in value

[localexperts]

the moment you launch a site on that domain.

I mean would you pay more for a DOT TV site that is launched, than a DOT TV domain of similiar quality that is unlaunched?

 

[garptrader]

Which is worth more - an empty lot on Miami Beach or that same lot with a three star hotel on it? The hotel if well managed could be worth a fortune even though we're not talking about a five star hotel with the best South Beach view. However, a hotel or restaurant in a prime location which is poorly managed or with a cost structure that makes it difficult to turn a profit (excessive rent or management compensation) may not be worth as much as one might think. The current economic crisis has illustrated how many companies really weren't as valuable as many thought and the management that ran those companies weren't worth what they were paid.

 

[freedom30]

It honestly depends on what the enduser wants to do with the name. Just like in real estate, even an attractive edifice on a hot property will be torn down to erect what the owner of the land wants to use it for.

Or the owner may want to keep whats on the land as well, if the owner likes the profit being culled from it.

Flip a coin.

 

[TLDnetworks]

the moment you launch a site on that domain.

I mean would you pay more for a DOT TV site that is launched, than a DOT TV domain of similiar quality that is unlaunched?

"the moment"? If the site launched is a good one it may add value, but beauty (and direction) is in the eye of the beholder. Quality of content, amount of content, scalablity, etc... all factors I would place on a purchase if a site existed.

 

[DnEbook]

unless the contractor is in the industry the site is promoting i would suggest no ?

it may be too vague perhaps

perhaps a video directory of different contractors may work

 

[MrRhee]

the moment you launch a site on that domain.

I mean would you pay more for a DOT TV site that is launched, than a DOT TV domain of similiar quality that is unlaunched?

several deals I've done would've been dead if I had developed the domain. the new owners prized the fact that the domain was pristine.
with other deals, it didn't matter at all whether or not the domain had a live site. in fact, some deals almost didn't happen because the buyers assumed the site was live, ongoing and most likely not for sale.
only once was my development a factor, and it was a major factor that increased the selling price substantially.

but from my personal POV, it matters very little to me unless the site is profitable, and I am buying based on revenue/traffic numbers. BUT: If the site isn't being used for the same purpose I had in mind, my original budget/offer would remain the same... development (that's not relevant to my model) would not influence the pricepoint at all.

.

 

[localexperts]

One of the reasons I posted this question is because my limited experience is that people with developed sites tend to think their domain gets a premium because the site is developed.

I also think domain owners think the site is worth millions because the site generates five or even low six figure in annual revenue.

 

[MrRhee]

One of the reasons I posted this question is because my limited experience is that people with developed sites tend to think their domain gets a premium because the site is developed.

I also think domain owners think the site is worth millions because the site generates five or even low six figure in annual revenue.

what valuation would you put on a site that generates low 6 figure annual revenue?

 

[localexperts]

Well that depends on the risk profile of the revenue stream, type of site, synergy, growth potential, underutilization of assets, number of advertisers,....a lot of factors.

For a directory site making six figures, in today's market, one of two things will happen:

1) No interest.
2) 1X annual revenue.

The days of 8X-10X revenue or more are over until the next bubble forms - unless there is a special circumstance.

 

[garptrader]

Yes, current economic conditions have depressed the valuations of everything from real estate to stocks to premium domains. But I would still prefer to be in the position of having a developed site generating income than an undeveloped domain with a potential buyer. OK a domain buyer may not care about the site I have on the domain just as a real estate developer may plan to tear down the building with an old restaurant in it. But a business which generates income has more negotiating power than one which does not. A profitable business can be patient and wait for the right opportunity to sell. An inventory of undeveloped .TV domains can be expensive to hold particularly if one has premium renewals.