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Sex.com Sold For $14M

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Prosperous

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A bit too low?
Way too low!!

Allemachtig!

Rob
 

ShaunP

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...Its always too low...when you are not paying.

Shaun
 

RatherGood

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rdmedia said:
Not bad, actually I think the price is very fair, perhaps even a bit too low?


Well, the question before asking "too low" is how many real buyers are there out there that can afford the name in the first place.

Gary Kremen got worked over pretty hard by the conman, verislime, etc.

In the end, he still wasn't monetizing sex.com to its full potential. This sale for $14M makes perfect sense to me.


The real question is how much is the buyer going to re-sell it for one day and in the meantime how much are they going make off the name itself.

I hope this means .XXX has been completely derailed and the buyer would hopefully have inside information to this effect.
 

Edwin

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Depending on how taxes etc. pan out, the seller is likely to be left with $7-8 million I'm guessing.

At 4% interest, $8 million earns US$320,000 a year - enough for any normal person to live on VERY comfortably without having to work another minute in their lives (and without touching the $8 million principal). Perhaps that was another consideration for the seller?
 

Bender

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Edwin said:
At 4% interest, $8 million earns US$320,000 a year -
I believe the domain itself could earn alot more than 320k/year.
 

RatherGood

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IT Web Team said:
I believe the domain itself could earn alot more than 320k/year.


It could probablly earn the sale price per year in the right hands.
 

britishbulldog

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Yep cheap,no matter waht it was under achieved at 320k per by at least 10 times but its a steal and there are a lot of people with that type of money,gee some yearly bonuses are equal to that !
 

Leading Names

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Fair price IMO, especially when you consider the future of adult domains and .com is uncertain.

- Rob
 

britishbulldog

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Leading Names said:
Fair price IMO, especially when you consider the future of adult domains and .com is uncertain.

- Rob

Problem is if we all thought along those lines about our domains,property or anything with value,we would own nothing and everything would be cheap.

Low risk= low reward
High risk=High Reward

There are those who want it and those who dont ! lead life on the edge not near it ! LOL
 

URLtrader

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IT Web Team said:
I believe the domain itself could earn alot more than 320k/year.

Very well said. The sale price is way too low.

URL Trader
 

Leading Names

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britishbulldog said:
Problem is if we all thought along those lines about our domains,property or anything with value,we would own nothing and everything would be cheap.

Low risk= low reward
High risk=High Reward

There are those who want it and those who dont ! lead life on the edge not near it ! LOL

Put it this way...

Would $14,000,000 be such a great price if 3 years down the road you can't put adult content on the domain?

- Rob
 

RatherGood

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britishbulldog said:
Yep cheap,no matter waht it was under achieved at 320k per by at least 10 times but its a steal and there are a lot of people with that type of money,gee some yearly bonuses are equal to that !


Sure, there are lots of people and businesses in the world that have money like that to throw around.

Very few are interested in developing adult websites and being connected to the adult industry or necessarily know what to even do with the domain/site.

Just because they have the money doesn't mean they can turn it around and make it profitable. Hustler, Playboy, Penthouse all have that kind of money but got a serious ass kicking when they tried to bring softcore porn online.
 

snicksnack

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There are plenty of people in the adult industry who easy could have paid $14m. If the website is developed properly, it would far more money than the 320k. But I guess there are two happy sites, buyer and seller.
 

JMJ

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I think it's way low personally. With live content they will make their money back in less than 2 years. Mabey even a year.
 

Beachie

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What?!?! That can't possibly be true??

I'd have dug up $15m for sex.com. Wasn't Kremen awarded $65m in damages (albeit it was never paid) for lost income over the four years that Cohen had it? That name is worth 3x that much. Dig deeper - there must be more to it..

gruffyserv said:
It could probablly earn the sale price per year in the right hands.
Exactly! That name pulls at least a million uniques a day. If 1% of people click a 10 cent ad, that's $365k a year..

If half a percent do a $15 signup that's $27 million a year. Something doesn't add up here.

According to overture "sex[space]com" gets 400,000 and "sex.com" is never shown in overture. If you want to play the maths in overture:

google[space]com gets 376555
google.com gets 8142507
So... (8142507/37655)*400714 = 8,664,913 for sex.com

So let's say 6,000,000 uniques a day, 1% CTR on a 10 cent ad = $2.19 million per year.
 

rdmedia

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a million uniques a day, isn't that a bit overestimated?
 
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