Anyone here spent over 100K for a domain?

I so badly want to tell you the domain but just can't yet.

I think this is going to be the best way for me to explain it.

Say you own MensClothes.com and you market to various distributors, franchises, etc. Now, to fulfill your business (since most of the companies you do advertising for also have woman's clothes) you need to buy the reciprocal domain WomansClothes.com so you can create a site that cators to both.

1) You would immediatly double your clients, traffic, etc
2) You can now easily cator to companies that supply both womens clothes and as well as mens.
3) Your company sounds stronger when marketing to new clients.
etc
etc
etc
etc

Edit: and yes, in this circumstance I would consider buying Clothes.com to work for both markets but in my market it would cost me a minimum of 6 mil (if not 30)


As for the domains I own. I have no interest in selling them at all. I have had a lot of large offers and wont take one until the right one comes along. I would rather build them out (currently building 30+ sites a month, and 4- 3K plus page sites a year (all fresh content, custom, etc, not auto-genrerated pages).


Yes, I have calculated a payback period. Of leads alone, no advertising (which is the purpose of the site), it would take 8 months.

Anyway- this was a lot more detailed then I wanted to get but I am contimplating what do to. I don't want to give up equity but don't have $160 cash with all the investments taking place at the moment. I guess we'll see how it goes.

Lastly- the domain currently pulls 50K net a year but we have different business model which would lose a lot of the current clients.

riddarhusetgal said:
No offense but if you really do own 50 domain properties worth 10k or more why have not paid for a professional valuation study? And who spends that kind of money on "branding"?

Individuals who do well in domain investing view domain assets more like convertible securities - i.e. an equity asset subject to appreciation with a significant fixed income component (i.e. revenues).

What is the discount rate you are using in your valuation model?

What comparables are you looking at?

Have you calculated a paypack period?


Gone are the days when this very simple concept of "a domain is worth whatever you will pay for it" still flies.


If you've run the numbers and considering how the market is these days, you should feel quite comfortable with spending 6 figures if the domain is worth at least that or more - IMHO
Click to expand...
 


Dimaseo said:
I so badly want to tell you the domain but just can't yet.

I think this is going to be the best way for me to explain it.

Say you own MensClothes.com and you market to various distributors, franchises, etc. Now, to fulfill your business (since most of the companies you do advertising for also have woman's clothes) you need to buy the reciprocal domain WomansClothes.com so you can create a site that cators to both.

1) You would immediatly double your clients, traffic, etc
2) You can now easily cator to companies that supply both womens clothes and as well as mens.
3) Your company sounds stronger when marketing to new clients.
etc
etc
etc
etc


As for the domains I own. I have no interest in selling them at all. I have had a lot of large offers and wont take one until the right one comes along. I would rather build them out (currently building 30+ sites a month, and 4- 3K plus page sites a year (all fresh content, custom, etc, not auto-genrerated pages).


Yes, I have calculated a payback period. Of leads alone, no advertising (which is the purpose of the site), it would take 8 months.

Anyway- this was a lot more detailed then I wanted to get but I am contimplating what do to. I don't want to give up equity but don't have $160 cash with all the investments taking place at the moment. I guess we'll see how it goes.
Click to expand...


what is the discount rate, i.e. risk premium you've attached to the valuation?

what are the comparables going back at least 2 years??

what is the SEOV value in your own local currency ($$, Euros, etc.)???


PM for an offline chat if you like. As I said, I wouldn't spend $10 (literally I don't) without running the numbers.

Domains are alternative assets just like interest rate derivatives, currency swaps, etc.

As Rick Schwartz said and I concur fully (though he has far more years in the game than I do...), "I've never bought a 'brandable' domain in my life"


Whatever you do, good luck....
 
Find a way to buy that shit dude. You'll get the money back within 8 months according to your figures, and even if you don't, you still own a domain worth 6 figs.
Dimaseo said:
I so badly want to tell you the domain but just can't yet.

I think this is going to be the best way for me to explain it.

Say you own MensClothes.com and you market to various distributors, franchises, etc. Now, to fulfill your business (since most of the companies you do advertising for also have woman's clothes) you need to buy the reciprocal domain WomansClothes.com so you can create a site that cators to both.

1) You would immediatly double your clients, traffic, etc
2) You can now easily cator to companies that supply both womens clothes and as well as mens.
3) Your company sounds stronger when marketing to new clients.
etc
etc
etc
etc

Edit: and yes, in this circumstance I would consider buying Clothes.com to work for both markets but in my market it would cost me a minimum of 6 mil (if not 30)


As for the domains I own. I have no interest in selling them at all. I have had a lot of large offers and wont take one until the right one comes along. I would rather build them out (currently building 30+ sites a month, and 4- 3K plus page sites a year (all fresh content, custom, etc, not auto-genrerated pages).


Yes, I have calculated a payback period. Of leads alone, no advertising (which is the purpose of the site), it would take 8 months.

Anyway- this was a lot more detailed then I wanted to get but I am contimplating what do to. I don't want to give up equity but don't have $160 cash with all the investments taking place at the moment. I guess we'll see how it goes.

Lastly- the domain currently pulls 50K net a year but we have different business model which would lose a lot of the current clients.
Click to expand...
 
The most I ever spent on domain was around 7k... I haven't done anything with the domain and it's been almost a year.

160k for a domain is insane... that's the price of some houses.

In your example why not just register TheBestWomansClothing.com or something like that instead.
 
why not just register TheBestWomansClothing.com or something like that instead.
Click to expand...
Because when calling an advertiser and saying hi, my name is John Doe calling from TheBestWomensClothingintheWorld.com, I am calling to see if you would be interested in advertising with us....... and spending 4K+ a a month.

Not a chance....call already lost (not brandable).

and, the SEO value isn't there

Plus, owning MensClothes.com and then owning thebestwomanscloths.com defeats the purpose.
 
riddarhusetgal said:
No offense but if you really do own 50 domain properties worth 10k or more why have not paid for a professional valuation study?
Click to expand...

From who? SEDO? Moniker? Some "domain expert" consultant? They're all going to tell you something completely different form one another.

riddarhusetgal said:
And who spends that kind of money on "branding"?
Click to expand...

I suspect more than you know. Branding is a subjective thing as well. Some might only consider oddball names like "Google", "Yahoo", "Skype", "Kazaa", "Flickr" to be truly brands, but I sure consider the likes of "Candy.com" to be the ultimate in bradability.
 
Domainers...call domains like this category killers or generic names. It's like rolling up to meet your girlfriend's parents in a Rolls-Royce versus a Chevette.
 
Yes, I have calculated a payback period. Of leads alone, no advertising (which is the purpose of the site), it would take 8 months.

buy that fucker Dima, you'll have a real site you could instantly sell for 3x earnings as a business. Think about it this way. If your competitor got the name how pissed would you be?
 
WWJAD? (What Would Jay Abraham Do?) Lulz

Dimaseo said:
I so badly want to tell you the domain but just can't yet.

I think this is going to be the best way for me to explain it.

Say you own MensClothes.com and you market to various distributors, franchises, etc. Now, to fulfill your business (since most of the companies you do advertising for also have woman's clothes) you need to buy the reciprocal domain WomansClothes.com so you can create a site that cators to both.

1) You would immediatly double your clients, traffic, etc
2) You can now easily cator to companies that supply both womens clothes and as well as mens.
3) Your company sounds stronger when marketing to new clients.
etc
etc
etc
etc

Edit: and yes, in this circumstance I would consider buying Clothes.com to work for both markets but in my market it would cost me a minimum of 6 mil (if not 30)


As for the domains I own. I have no interest in selling them at all. I have had a lot of large offers and wont take one until the right one comes along. I would rather build them out (currently building 30+ sites a month, and 4- 3K plus page sites a year (all fresh content, custom, etc, not auto-genrerated pages).


Yes, I have calculated a payback period. Of leads alone, no advertising (which is the purpose of the site), it would take 8 months.

Anyway- this was a lot more detailed then I wanted to get but I am contimplating what do to. I don't want to give up equity but don't have $160 cash with all the investments taking place at the moment. I guess we'll see how it goes.

Lastly- the domain currently pulls 50K net a year but we have different business model which would lose a lot of the current clients.
Click to expand...


Jay once relayed a story of two of his friends who went into business selling Cubic Zirconium stones.

One was great at copy writing and made about 6,000.00 profit after running a campaign and decided to get out since it had taken quite a bit of his time to make this $6,000.00 after a $35,000.00 investment.

The second friend was just average at copy writing and only spent about $25,000.00 on his campaign. He wound up being $6,000.00 in the hole after the first run of the campaign on the front end.

The second friend had a strategy though, he had done extra work in his marketing that allowed him to get larger sales on the back end and he stuck with it. He made over 25 million dollars PROFIT over the years from that initial $25,000.00 investment that he lost $6,000.00 on the front end with.

You may have heard Jay tell this story or even read it somewhere before.

It just seemed appropriate to relay it again here since you are weighing an investment against available funds and possible profits/losses.

It sounds to me like you DEFINITELY have a strategy for this domain that will actually elevate ALL of your reciprocal domains which will automatically take your business UP a few levels in your market. (If the present owners are only making 50k annually they obviously aren't putting it to as good a use as you have planned for it.)

A "No Brainer" in my book. (Or Jay's.)

But hey, there are quite a few members here with THOUSANDS of posts advising against it. Then there are those with less than a 100 posts saying go for it.

P.S. If funding is the main problem right now for your purchase, maybe work out some kind of equity deal that gives "you" an option to BUY OUT their equity within 12 months plus 10 to 20 percent of the equity buy out price. (If they need some convincing that is.)

This way if you default in the course of a year the seller knows that they will still have their equity stake. If things go according to your figures, you can get the domain NOW and then buy them out within 12 months and be just fine.

Either way, you'll get the domain before the "Silly Season" and then have it in perpetuity.
 
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