How Much Would You Pay...?

so there is a domain for sale.

it is a single, short, one word... it is a .net domain.

i used Google Keywords tool and on average there are 10,000,000 searches each month for this word.

i looked at the Google results for this word and the results are not strong (i.e. the first result is for its wikipedia page and a lot of other crap, stuff I would not consider strong competition if I tried to get a high ranking on Google).

assuming I would be able to achieve first page result status with the domain through some SEO...

How Much Would You Pay for the Domain?





The rough calculation I'm putting together is something like this:

10 million searches a month for this word... if I get first page and can grab just 5% of the hits that is 500,000 hits a month. If I get a 3% CTR on Google adsense ads @ $0.20 per click that would be $3k/month... (or I can try to put up product ads which may get more).

So I'm thinking $10k or less would be a steal for me to buy this at...

Thoughts?


EDIT: Domain is over 12 years old.

That sounds like a good strategy. But I'd try to go way lower on the actual price. $10k is pretty steep for a domain name.

$18k.........................

Domains like this can easily go for 6 to 12 times average monthly income. So if the domain can earn $3k per month then $18k to $36 is a good range if you think the income is not going to drop off

shockwave said:

Domains like this can easily go for 6 to 12 times average monthly income. So if the domain can earn $3k per month then $18k to $36 is a good range if you think the income is not going to drop off

Click to expand...

ummm i thought parked domains sell for like 36*monthly earnings...

is that not true?

davejug1 said:

More like 10-12 months

Click to expand...

normal websites fetch 10-12times!

this is a domain! with no work! its total auto income!

and try reading the domain forums.. thats the kinda pricing that these domains command!

but i am not sure if the OP is talking about parked domains or developed domains!

if its parked... its 30-36

if its developed .. its 10-12

berrycorp said:

normal websites fetch 10-12times!

this is a domain! with no work! its total auto income!

and try reading the domain forums.. thats the kinda pricing that these domains command!

but i am not sure if the OP is talking about parked domains or developed domains!

if its parked... its 30-36

if its developed .. its 10-12

Click to expand...

so if I have a parked domain that is bringing in $300-400 a month you really think I could get $10k for it? That seems like too much, I was gonna get rid of it for about $2k.

vivalafeva said:

so if I have a parked domain that is bringing in $300-400 a month you really think I could get $10k for it? That seems like too much, I was gonna get rid of it for about $2k.

Click to expand...

Not unless whoever buys it can easily use it to make more per month than you are making.

Especially not in a global recession

If I was some of you in this thread, I would immediately purchase a financial calculator, before you lose your money. Probably all of it.

You need to look at a profit and loss statement, then determine what it is worth from there. In other words, if you pay way too much for something, you will not be able to cover the business expenses. You will lose money month after month and year after year. It is called a negative cash flow position. Don't pay for potential. Pay for current earnings only. Sure it may have potential but why didn't the current owner capitalize on it before now?

Granted, I made my money in real estate. Every seller talked about 'potential'. I always talked about current income. Of course, I wouldn't buy it if it didn't have potential, but why didn't he increase the value of the real estate through the potential. Cause it either isn't there or he didn't know how to do it. I pay for current real life profit, not further profit if I realize its full potential.

I will pay for the work he has done to reach its current state, but I don't pay for the potential based on work I will do in the future to increase profitability.

vivalafeva said:

so if I have a parked domain that is bringing in $300-400 a month you really think I could get $10k for it? That seems like too much, I was gonna get rid of it for about $2k.

Click to expand...

read http://www.dnforum.com/

u'll understand that u are sitting on a goldmine.... if its all natural type in traffic and you dint get it from spamming n stuff!

especially if you were to put the work in and build a full size webpage, you could probably double your income easy.