NamesCon2020

Sold: YouConvert.com - $1,200.00

Labeled as various in Domain Selling and Domain Sales started by BuyBrandWeb.com, Nov 2, 2018.

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572

  1. BuyBrandWeb.com

    BuyBrandWeb.com Praveen Chidaboyina PRO Gold Account VIP

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    Sold YouConvert.com for $1200 USD on Flippa with BIN.
    Purchased by Zamzar.com

    Acquired it for 390 USD + 14 USD renewal fee + 50 USD namebio promotion - $144 USD Flippa commission ;
    1200-598 = $602 USD profit and 100% return
    Hold time - 7 months.
     
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  2. MediaCode

    MediaCode MediaCode.com ICA Member VIP

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    Your ROI% was actually 154% ($602 ÷ $390 = 1.54 x 100 = 154%).
     
  3. Recons.Com

    Recons.Com Top Member VIP

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    Actually, it was closer to roughly 394% annualized since 154% was in 7 months ;)
     
  4. MediaCode

    MediaCode MediaCode.com ICA Member VIP

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    True, but an annualized ROI makes no sense here because the activity is not repeatable. You can only sell the domain name once and collect your proceeds once. You cannot repeat it every 7 months. Therefore, the 154% ROI still stands.
     
  5. Recons.Com

    Recons.Com Top Member VIP

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    1. Why can't you?

    2. Even if it is not repeatable, why then to assume 0% return? Why not 10% gain or 50% loss? ;)
     
  6. strugar

    strugar Established Member

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    Would you elaborate on that, please, I don't get your math? He invested total of 598 $ on that domain, not 390 $, and earned net of 602 $. Hence 602 / 598 = ~100%.
     
  7. MediaCode

    MediaCode MediaCode.com ICA Member VIP

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    Well, his original investment -- his basis -- was $390. Sure, you could add in the $14 renewal to make it $404. Everything else, the promotion fees and the commissions fees are "cost of sales". Those are artifacts of how he chose to sell the domain name, incremental costs he elected to spend to get the domain name sold. He need not have incurred those expenses to sell the domain name -- he could have chosen another way, perhaps a free way. Meanwhile, his investment in the name remains $390 (or, $404).

    So, perhaps the ROI% is thus (Sales Price - Cost of Sales - Investment) ÷ Investment; or, ($1,200 - $194 - $404) ÷ $404; or, $602 ÷ $404 = 149%.
     
  8. andNames

    andNames Shailendra Mishra VIP

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    I think annualized ROI makes sense for a full time domain investor.

    Would you prefer a 250% profit in 2 years holdtime over a 100% profit in three weeks holdtime just because ROI is more in first case?

    Who said it is not repeatable? For a full time domain investor it is indeed repeatable. Once we get our cash back, we can buy more domains and repeat.
     
  9. KhaledA

    KhaledA Established Member

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    Congrats!
    Well done !
     
  10. Niraj Kumar

    Niraj Kumar Established Member

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