1/ Conversion rate of 1% too optimistic
Yeah right...payback in under 1 year. NOT
Conversion rate of 1% is very optimistic.
The idea that visitors will stay without going elsewhere & shop at the 1st place they land on is ridiculous.
This ain't 1998 when there was no competition anywhere.
There are such things as Google & comparison shopping
What they are selling, after all, is a very competitive & commodity product (as others have mentioned $5 is common price).
Sorry - having even *the* name is not enough
2/ Analysis
Merely a "brochureware" shop - doesn't even do web development.
Work is likely outsourced to a $5 logo shop or India. LOL
$ 500,000 domain
$ 500 spent on the website = typical domainer mentality
Too much competition,
commodity product.
Pricing pressure: cheap, cheap, cheap
Business doesn't scale up well.
Tough grind, at best.
This is not exactly marketed as a corporate high end shop...so who the hell will pay $100 ??
Rewards are not commensurate with the risk.
No Venture Capitalist would go near this venture with a 10 ft pole..
3/ Google Adwords
Here's where the rubber meets the road
Despite the domainer soundbite of "type ins" blabla...
I would think despite the type-ins it already gets, the owners will launch an Adwords campaign
A large % of type-ins, i would think were looking for logotv.com, a site with gay content.
In other words: wasted
Truth is, most sites (real sites selling stuff, not some page w/ ebay listings, LOL) would not survive (or get big quickly enough)
Type-ins are an adjunct to OTHER marketing campaigns - not standalone
So much for the domainer's adage spouted by domainers who've never built anything. LOL
4/ Give it within 3 yrs & the domain will be back on the auction block.
Citing...change of direction blabla...
with over 70,000 visitors monthly and possibly turning .01% of those visitors into real customers with an average ticket price of $100 will get thier money back in less than a years time of being up and running.