ROI Question

[cassidy36]

I'm about to take the plunge and buy an expired domain in the $500 range on TDNAM, the big unknown for me is how long would it take to recoup my investment? I know each case is different, but can anyone share the experineces with rate of return? Does it take months, years?

thanks everyone. :?

 

[-NC-]

buy an expired name on tdnam? I thought all expired names on tdnam went to auction, do you mean you are bidding up to around $500?

AFAIK, if a name is "buy now" on tdnam, and the price is greater than $5, it is not expired, it is someone selling it.

 

[cassidy36]

Yes, bid at aution.

 

[Mike]

I'm partially copying my post from: http://www.namepros.com/industry-news/366030-what-is-roi-lol.html

Basic Math Calc for Core ROI:
ROI = [(Revenue - Investment{500})/Investment{500})]*100 = x

Your initial investment of $500 is playing against a few factors:
1, Time
2, How you plan on generating money with this domain
- parking -
if the domain generates $1/day in payable revenue, you'd take 500 days just to recoup your investment, let alone make a profit that's being paid to you. On the positive side, you're generating equity - you can expect the domain to increase in value over the 12 month period.
- developing
When developing, your total cumulative revenue will take the "Revenue" spot, HOWEVER, you have to consider a few more factors then:
- Hosting costs
- Labor (ALWAYS pay yourself)
- Costs for software, development and/or outsourcing
- Tax (if applicable)


IB

 

[mktgmark]

IntelBank,
Very nice post regarding Return On Investment.
Thanks for sharing.