domain $$ Just dropped 20k for RealEstateInvestor.com

[BestDomainDeals]

I just spent $20,000 on RealEstateInvestor.com and I'm trying to get an idea of what it it would be worth on the open market. Any ideas????

It has 4,000 random type in a month and it seems that PPC is very high for real estate related products and services.

20,000 searches in google and yahoo a month for the words: Real Estate Investor

Thanks for your input!

 

[cityforums.com]

How much is the PPC income per month ?


:]

 

[BestDomainDeals]

Just bought it, no idea

Thanks for your interest and for replying, there isn't any PPC rev with the domain right now as the website wasn't being used for that. We bought it for our online community for real estate investors that we've created. www.RealEstateInvestor.com is trying to be the MySpace and YouTube for investors.

What's you initial feeling on the strength of the name?

Muchas Gracias!

colin

 

[GoPC]

It would appear to be worth $20,000 dollars.

Nice Buy

GoPC

 

[fonzie_007]

It would appear to be worth $20,000 dollars.

Nice Buy

GoPC

I disagree. Unless I would see some actual $ figures for monthly earnings, I am skeptical the pricetag was worth it.

 

[cityforums.com]

I disagree. Unless I would see some actual $ figures for monthly earnings, I am skeptical the pricetag was worth it.

Fonz in terms of opportunity cost I would agree ...

it looks like it will be fully developed so it will justify the

price.

:]

 

[GoPC]

My thinking is this... IF the site augments the Real Estate Market as he states, Real Estate Agents, not the firms, are willing to pay upwards of $500 to advertise on an active media platform (I've sold for this anyway) and the number of Agents out there is staggering... so it stands to reason that in a few years, marketed and sold properly, it should easily be worth the $20K paid.

That is NOT to say, that I think the domain would get $20K worth of natural type-in traffic/monitization. I can't see that happening.

For for a branded, marketed product as was described, I think it could support itself in time.

Even so, as evidenced by the buyer himself... it was worth $20K to somone

GoPC

 

[Spade]

RealEstateInvestor.com is a solid name. But the supposed $20,000 that it was just purchased for is definetly an end-user price. If this was picked up for a flip - I dont believe it will be quick for a turn-around sale and profit.

I agree with most of the above comments. If you are parking it, I dont believe it can justify that price. However if you are developing it, does it matter what we appraise the domain name for itself?

Since you paid $20k - you have now set the market price.

Thanks!

 

[Keynes]

I agree with Justin's comments: the domain suits the buyers' development goals, and thus establishes the market price as fair. While the resale/wholesale/base price of the domain might depend on PPC and traffic, its development potential expands that. The name is solid, generic, straightforward and surrounds a huge industry -- if you play your development cards well, I believe you'll get a nice return on your 20k. Best of luck!

 

[Mike]

if developed as suggested, yes, the domain is worth 20k. HOWEVER!!!! there are tons of free listing oportunities for real estate agents and investors out there, which makes the development challenging and the sale even more difficult. monthly sign up fees, etc. yes, it's possible but it might take a while to get the traffic and revenue to validate the price tag.

good luck!

 

[domainica]

I agree with Justin's comments: the domain suits the buyers' development goals, and thus establishes the market price as fair.

I guess I have a hard time understanding this: A SINGLE buyer paying X dollars for a name, for whatever perceived reason or goal, represents "the market"?

 

[emega]

If the domain name is developed into a succusful Web site then it does not matter what this guy payed for the domain name.

Often times peopel will shell out $1,000 for a brandable domain that has no unsolicited type in traffic, but the $1,000 price was worth it because the domain was developed into a succesful Web site.

Take a look at BuyDomains.com
They sell domains for way more than their traffic income is. If a name has a little bit of traffic income the price will be very high- this is how BuyDomains works.

The fact is that most domains do not earn much income- except for the very best of domains. RealEstateInvestor gets 4,000 type ins a month- that is very high and valuable- especially considering that this is the real estate industry. I would definitely consider RealEstateInvestor.com as being on the list of BEST of domain names.

Best of luck with your domain name!

 

[domainica]

If the domain name is developed into a succusful Web site then it does not matter what this guy payed for the domain name.

And here we are with the qualifying "IF". Using that logic, we can value absolutely ANY domain name as worth at least $20K, because IF it's developed into a successful, money-making site...

 

[emega]

And here we are with the qualifying "IF". Using that logic, we can value absolutely ANY domain name as worth at least $20K, because IF it's developed into a successful, money-making site...

No, not every domain name is so brandable like this one. Also 4,000 type ins a month is a lot of traffic and definitely has value.

P.S. I like your Web site on RealEstateInvestor.com
Looks like the United States Dollar Bill.
Great logo too!

 

[domainica]

No, not every domain name is so brandable like this one. Also 4,000 type ins a month is a lot of traffic and definitely has value.

I agree, the name is brandable. And 4,000 type-ins is also very good. But what is the quality of the type-ins, who do they represent (people with money or tire-kickers), how is the site going to take advantage of this, etc.?

If it becomes a money-making site 2 years down the line, does it mean it's worth $20K today to a domainer?

If it takes a bit more than 2 years to make back your $20K investment (not counting money and time spent with development, programmers, marketing, etc.), you've just broken even.

If it takes 3 years to make a $20K profit, you've made a 100% return on your investment in 3 years. Now weigh that against what you could have made with your original $20K had you invested in other domain names during this period.

Long story short, I think it's very difficult to value this domain name when we don't know the value of the current traffic.

 

[GoPC]

I guess I have a hard time understanding this: A SINGLE buyer paying X dollars for a name, for whatever perceived reason or goal, represents "the market"?

Yes, but don't confuse "the" market with "that" market, or "his" market or a "niche" market.

YOUR understanding of YOUR market may not be his or that of his peers.

GOPC.com, my name's sale domain, is a prime example.

A great percentage of the people that look at this domain see only LLLL.com and value it according to it's prime letter value and the fact that it is 4 letters and a dot com.

Another group see it as a very focused Political domain, Grand Old Party Convention and base it's value only only people or organizations that would use it for Republican purposes.

Still others, look at it as an semi-pronouncable 4-letter word and being as it's not very pronouncable, value it accordingly.

There are those that see it as TWO words, GO and PC (an acronym really) and consider the intrinsic value of people that would type in GO and PC.

Then there are some that look at it in terms of Branding, Go (Mobile) PC (Computers) and assign value based on that.

Each "market" is VERY different and has a completely different valuation system.

While one might be based soley on traffic and CTR (domainers) another might be based on the Retail Value of the items sold through the site and the sell-through rate ($1000+ per item with a 15% STR).

That is why I get $500 offers for the Domain and $60,000 offers for the domain.

In the case of RealEstateInvestor.com, the value has been set at $20K because someone was willing to pay that and it is set in the specific market in which it was purchased. It's a lucrative market with many agencies and agents spending many thousands of dollars per month to find new and better ways to increase their real estate turnover. The private investor segment of Real Estate is booming as well. Foreclosures have been at an all time high. New Home construction is booming in certain markets. Buying land to develop is a popular and very lucrative thing to do as well.

When you bought a pice of property 15 years ago for $150K and can sell the same property today for $5 Million USDollars, I'd say that RealEstateInvestor.com has great potential based on "the market" in which it is to be put in play.

"Sit on your butt and do nothing to make a buck" domain? Not Likely.

But that IS the problem with Domaining, isn't it? The opportunity to but the sit-n-do-nothing domains has pretty much passed on.

It's time to develop, build a popular site with tons of users and sell out for 6 Billion like YouTube.

Yeah... it has potential. Don't let the word "WORK" scare you away.

GoPC

 

[emega]

Look. The fact is that this domain is very rare.
That said- in 10 years down the road a name like this will very likely be much more rare.
In addition- as the Internet grows so does the unsolicited type in traffic that this domain will receive.
Theres a reason why this domain has a Creation Date of 26-dec-1996

This domain is a true peace of internet real estate.

 

[GoPC]

If it takes 3 years to make a $20K profit, you've made a 100% return on your investment in 3 years.

Isn't that typical in the domain aftermarket? Paying 3 - 5 years of Rev for a domain? That being the case, nobody doing this on any domain is making any money for the term of the buyout. Even for the almighty generic dot commons.

GoPC

 

[emega]

Yes, but don't confuse "the" market with "that" market, or "his" market or a "niche" market.

YOUR understanding of YOUR market may not be his or that of his peers.

GOPC.com, my name's sale domain, is a prime example.

A great percentage of the people that look at this domain see only LLLL.com and value it according to it's prime letter value and the fact that it is 4 letters and a dot com.

Another group see it as a very focused Political domain, Grand Old Party Convention and base it's value only only people or organizations that would use it for Republican purposes.

Still others, look at it as an semi-pronouncable 4-letter word and being as it's not very pronouncable, value it accordingly.

There are those that see it as TWO words, GO and PC (an acronym really) and consider the intrinsic value of people that would type in GO and PC.

Then there are some that look at it in terms of Branding, Go (Mobile) PC (Computers) and assign value based on that.

Each "market" is VERY different and has a completely different valuation system.

While one might be based soley on traffic and CTR (domainers) another might be based on the Retail Value of the items sold through the site and the sell-through rate ($1000+ per item with a 15% STR).

That is why I get $500 offers for the Domain and $60,000 offers for the domain.

In the case of RealEstateInvestor.com, the value has been set at $20K because someone was willing to pay that and it is set in the specific market in which it was purchased. It's a lucrative market with many agencies and agents spending many thousands of dollars per month to find new and better ways to increase their real estate turnover. The private investor segment of Real Estate is booming as well. Foreclosures have been at an all time high. New Home construction is booming in certain markets. Buying land to develop is a popular and very lucrative thing to do as well.

When you bought a pice of property 15 years ago for $150K and can sell the same property today for $5 Million USDollars, I'd say that RealEstateInvestor.com has great potential based on "the market" in which it is to be put in play.

"Sit on your butt and do nothing to make a buck" domain? Not Likely.

But that IS the problem with Domaining, isn't it? The opportunity to but the sit-n-do-nothing domains has pretty much passed on.

It's time to develop, build a popular site with tons of users and sell out for 6 Billion like YouTube.

Yeah... it has potential. Don't let the word "WORK" scare you away.

GoPC

This domain has a straight forward use- The Real Estate Industry.
Domain names with different uses are not as valuable because if a Web site was to be developed it could only cover one of those uses (the primary use of the domain) and thus the traffic received that is related to other uses of the domain name would be wasted.

Also just because someone payed 20k for domain does not mean it is worth that amount.
In this case I feel that 20k was a great deal- considering the traffic, industry and brandability of the domain- however to say that what you pay for domain is what it is worth is false.

People have payed thousands for domain- but the traffic is worth far more. Also people have payed thousands for a domain- but the traffic is worth far less.

I base the value of domain on its concrete value= i.e. traffic

A brandable name is valuable but there is no "proof" that it is.

Traffic is the only way to prove anything.

A brandable domain like erupt.com can be worth 10 of thousands of dollars- but concretely its traffic is not worth much- and in fact a less brandable domain like eruptions.com is worth more in terms of traffic but is significantly less brandable. Obviously "erupt" is not a very lucritive industry and the traffic is not commercial or targetted, but this was an example.

When a brandable domain also has some targetted traffic such as RealEstateInvestor.com you know the name is worth big bucks and is very rare and bound to become even more rare as time passes by and the internet grows and develops more.

 

[Spade]

I guess I have a hard time understanding this: A SINGLE buyer paying X dollars for a name, for whatever perceived reason or goal, represents "the market"?

Basic Economics dictates that if the Seller is willing to sell at the highest offer from any buyer - that is the "market price" as it was set by both the buyer and the seller.

I think the issue here is confusion between a developed website and a solitary domain name. A Website must be viewed like a business and business's are valued based on income and assets as well as market placement and potential.

The Domain would be an asset of the business. A Solitary domain names market value is at most the highest/best offer. Bottom line.