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slbergh
Posts: 322
Joined: 11/8/2002
From: Iowa
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Value of a domain - 12/15/2003 14:27:04
I need a little advice on behalf of my client. I recently built a site for a client who's been a distributor for an external company's product line. There was a conflict between them this weekend, and long story short, the company wants to buy out his domain.
His site has been up for about a month and a half and he shows up in Google's top 5 for the product. My client's trying to determine what the name is worth to him.
Any advice??
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Digital data lasts forever...or 5 years, whichever comes first!
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slbergh
Posts: 322
Joined: 11/8/2002
From: Iowa
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RE: Value of a domain - 12/15/2003 17:22:23
Thanks!
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Digital data lasts forever...or 5 years, whichever comes first!
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GreenLantern
Posts: 214
Joined: 1/21/2003
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RE: Value of a domain - 1/12/2004 5:28:07
My recommedation is to do your own projections on the number of sales that could be attributed to your site.
Looks at potential sales, branding and misc. aspects of how it will help their company. That way is not some bogus domain-name appraiser who knows nothing of your business but tells you this or that.
I would also consider leasing the name and not selling it. That way you get $, and the domain after a certain number of years. But if your client thinks this is the appropriate time for their "exit strategy", I would pull the trigger on a pure sale and get out now.
Good luck!!!!
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cooper
Posts: 773
From: Woburn MA USA
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RE: Value of a domain - 1/12/2004 12:29:23
Evaluation of the domain is a waste of time IMHO.
Just because an algorithm says a domain is worth X (due to # of letters in the domain, closeness to common search phrases on major engines, etc.) does not mean anyone out there would be willing to buy the domain for that price.
I'd follow GL's approach... and then keep in mind most companies like to see a ROI in 12 months. In other words, take what the site brings in and multiply that by 12. You should at least get that figure, that is, if your customer wants to sell in the first place.
Good luck and keep us posted!
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Cooper
BAC Web Design - Tools & Templates - Buck A Ball - Stopspamstop.com
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slbergh
Posts: 322
Joined: 11/8/2002
From: Iowa
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RE: Value of a domain - 1/12/2004 12:57:04
Thanks Cooper and Green Lantern. My client is still trying to determine what he's going to do. Apparently, the company he's been working with ran into this a year or so back, and as a result their IT department was supposed to have bought up all related domain names. (I guess someone wasn't doing his job!) It'll be interesting, to say the least, to see how it all turns out.
The best part for me is that what started off as a pro bono website (we've been trading skills), should now result in a rather hefty paycheck headed my way!!
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Digital data lasts forever...or 5 years, whichever comes first!
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GreenLantern
Posts: 214
Joined: 1/21/2003
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RE: Value of a domain - 1/12/2004 13:00:17
That exactly why I would endeavor to close the deal soon.
In their analysis, they may feel it is no longer necessary and fortunes can change in a moment.
Don't be anxious but start to move to get something in writing since you have revisted this so many times. ( eg: a committment or a time table)
Remember the #1 stock investing rule, it's only a profit when you sell.
Good luck and congratulations!!!
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