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Even though your math is off...
selling for 3 months profit would be fair?
yikes
selling for 3 months profit would be fair?
yikes
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closed Imposters.com - Picked up a GEM
- Thread starter iBizStart
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MediaHound said:
Yes, that should be $75,000 shouldn't it!
The assumption on 3 Months profit is base on the assumption that you are actually trading good and services and that the profit is not purely derived from the inherent value in the domain, but that there is significant other investment involved in setting up premises and employing staff and the like.
If you were talking traffic derived revenues then 30 months would be closer to the mark!
Best Regards
Dave Wrixon
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Dave, are you aware what the average, per domain multiple was that Marchex paid for the UltSearch portfolio?
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MediaHound said:
I guess it was much higher than that, probably 10 years worth of current earnings?
Much bigger deal and presumably Marchex feel that they are able to drive earnings higher, so they can recoupe their money sooner.
Its all down to risk and return, I guess. High risk investments need to have a high return. We are not sticking money in a Building Society here.
I guess UltSearch had some pretty sound figures to present, rather than speculation about what might be out there.
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Dave Wrixon
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...all good points, and your guess is right on the money.
I fondly believe that those that sell for 3x yearly are severely undercutting themselves.
History is a good indicator.
Look at the Louisiana purchase
$193M (adjusted for inflation; yr. 2005)
Although this may not be the best example, it's actually a good lesson to learn from.
LMK the domains if ever you decide to sell for 3x yearly.
I fondly believe that those that sell for 3x yearly are severely undercutting themselves.
History is a good indicator.
Look at the Louisiana purchase
$193M (adjusted for inflation; yr. 2005)
Although this may not be the best example, it's actually a good lesson to learn from.
LMK the domains if ever you decide to sell for 3x yearly.
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MediaHound said:...all good points, and your guess is right on the money.
I fondly believe that those that sell for 3x yearly are severely undercutting themselves.
History is a good indicator.
Look at the Louisiana purchase
$193M (adjusted for inflation; yr. 2005)
Although this may not be the best example, it's actually a good lesson to learn from.
LMK the domains if ever you decide to sell for 3x yearly.
Well it depends, generally I believe that if you have a really valuable domain then you should hold out for an offer you cannot refuse, but less interesting ones are costly to renew and develop and cashflow can be an issue.
At the bottom end of the market, however, it not about earnings at all. It all depends whether a business can brand itself on the name. I have sold loads that earn nothing.
Best Regards
Dave Wrixon
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