I still don't get it...

[fryman04]

I have been hanging out here for a while, trying to learn all I can about the domain business.. but I still don't get it. Why is a simple domain worth much more than a developed website?

I have seen many sites for sale here with great stats: nice link popularity, decent traffic, indexed by engines, some PR... and all that people ask is "how much profit does it make?". It seems that if you sell a site, it all that matters is how much $ it makes. And if you dare to ask for over 12 months of revenue, people start barking saying you are crazy.

However, if someone sells a domain that is parked and get 100 daily visitors and earns a few bucks at SEDO, they ask thousands of dollars for it and people actually buy them!

Why? I would think that a developed site would be worth much, much more than a simple parked domain. I just saw a thread of some guy with a $100k budget and he clearly says "not interested in developed websites".

I still don't get it.

:huh:

 

[Str]

Developed site requires mantainance.
Undeveloped traffic domains usually get Typeins which means they are very suitable for the subject.
People park good domains which gets typeins and earn from ppc without doing any work.
Developed sites usually require some sort of mantainance to keep it profitable.

Just my 2 cents.

 

[croupier]

Also, a profitable undeveloped site can be developed for even more profit if done well.

However, people usualy sell developed sites when they hit a wall and can't get it to go the next step (not always the case, but it's rare to find a developed site on sale that has had good steady monthly growth)

 

[skylight]

good domain can stay in people's mind easily.
typein domain = free advertising.