Multiple used when buying names with type-in traffic?

[redomainer]

I could use a little help here. I'd like to invest in .coms with some traffic. I'd like to know if there's a "standard" multiple (X times current monthly or yearly parking revenue) that buyers use? Also, what are some of the variables to consider?

Thanks in advance for your advice/opinions.

REdomainer

[Adam Dicker]

Buying... 5 year max... but take any generic value into consideration and you can't go wrong.

-=DCG=-

[garptrader]

[quote=redomainer;1330692]I could use a little help here. I'd like to invest in .coms with some traffic. I'd like to know if there's a "standard" multiple (X times current monthly or yearly parking revenue) that buyers use? Also, what are some of the variables to consider?




Now if I could just buy GOOG or AAPL for five times earnings

http://finance.yahoo.com/q/ks?s=GOOG

[redomainer]

Thanks Adam.

[ShaunP]

Buying... 5 year max... but take any generic value into consideration and you can't go wrong.

-=DCG=-

Adam:

Can you point me in the right direction where generic names are being sold at 5x or less? I'd like to buy a few.

[garptrader]

[quote=redomainer;1330692]I could use a little help here. I'd like to invest in .coms with some traffic. I'd like to know if there's a "standard" multiple (X times current monthly or yearly parking revenue) that buyers use? Also, what are some of the variables to consider?

http://chrischena.blogspot.com/2005/...-puntocom.html

I'll summarize a few of his main points:

-The traffic which a generic domain receives can be worth a lot more than the PPC income provided by a parking company. sedo may pay pennies per click for a real estate domain but if a real estate broker purchases the domain each sale resulting from that traffic could be worth thousands of dollars. The potential profit value of what can be sold using a domain's natural traffic influences the value of the domain?

-Type-in traffic also reduces a cost which many ecommerce companies face online advertising via a program such as Google adwords where each click results in an ongoing cost which may not necessarily generate a sale. The one-time acquisition of a domain's natural type-in traffic becomes free advertising going forward.

-Conversion rates for type-in traffic may be better for a generic domain than traffic acquired via a PPC campaign. Ancillary services can be offered to the site visitor which augment the value of this natural traffic.

-Ranking algorithms favor sites which include the keyword.

-An easily remembered domain with appropriate content can generate word-of-mouth advertising (viral marketing).

[garptrader]

... invest in .coms with some traffic. I'd like to know if there's a "standard" multiple (X times current monthly or yearly parking revenue) that buyers use? Also, what are some of the variables to consider?


Given that Ireport.com defaults to "page not found" something tells me the buyer (CNN?) paid a whole lot more than five times PPC income.

http://www.ricksblog.com/

[Rubber Duck]

5x Max is for domains going nowhere.

If the traffic has been engineered then 5x is already way too much.

For IDN, which are the best investment on the market at the moment, 1000x is likely to prove a very good deal if you can close it!

[maroulis]

5x Max is for domains going nowhere.

If the traffic has been engineered then 5x is already way too much.

For IDN, which are the best investment on the market at the moment, 1000x is likely to prove a very good deal if you can close it!

And for a minute there I thought you'd add something meaningful which wouldn't touch on IDNs.. and Yes!! I was partially right...

"5x Max is for domains going nowhere"

...the other BS about IDNs x1000 I think are direct result of your excessive KoolAid drinking...

[Rubber Duck]

And for a minute there I thought you'd add something meaningful which wouldn't touch on IDNs.. and Yes!! I was partially right...

"5x Max is for domains going nowhere"

...the other BS about IDNs x1000 I think are direct result of your excessive KoolAid drinking...

No just personal experience.

[Focus]

If they are sedo stats then 100x earnings works out fine for .com's lol

[Rubber Duck]

I know some of you don't think to highly, but sedo that really is slinging the mud!