Prices on traffic domains question

[Andy$$$]

Can someone please explain to me why many of the domains for sale with existent traffic cost so much?

I mean some one wants to sell an ordinary domain that he picked up from a drop, he finds out it has 100 visitors a day and the revenue is $1/day... then he wants $500 for it.... that would mean it takes 500 days to ro meet ROI and if you don't develop the site then the traffic would most likely decrease during that time.

So can one explain to me why I should pay like a year of or more in total revenue for a domain? It seems a bit risky business to me but im sure that im just missing something here

 

[Gee]

i think it is normal to pay one year of revenue for traffic names like typos or those who have consistent traffic

but names catched on a drop a little risky as you said traffic will decrease over time

 

[PapaStiz]

i think it is normal to pay one year of revenue for traffic names like typos or those who have consistent traffic

but names catched on a drop a little risky as you said traffic will decrease over time

Very true Gotasale...

What you have to keep in mind is if the traffic is going stay over time. Parishiltonhacked.com was getting huge traffic..but after a while it will decrease and then finally nothing. On the other hand a typo of yahoo.com will probably bring in the money for a while.

You need to keep your head on straight and not get caught up in the moment and buy the domain on impulse. If you think it is a good investment then investigate and then buy, if not....then walk away. If you dont have time to investigate and have no prior knowledge...then luck be with you.



Papa

 

[fatter]

Its comparing apples and oranges, traffic from a defunct website is like you said a gamble and at most if traffic decreases worth a years revenue, on the other hand a generic or mistype with traffic is in my opinion worth more thatn 10 years revenue if it is generic and memorable and short

 

[DNjet]

Also sometimes there is speculation built into a purchase on the notion that the revenue can be significantly increased based on the type of traffic the domain is recieving.