Domain Name Value???

[Zotzmein]

I’ve registered several domain names over the years for potential future sites I would like to develop. I received a call today from a company out of Florida that wants to purchase one of my domains: radioredneck.com

Given the decreasing populous of decent .com names, I’m not sure how to estimate what this name might be worth. I’m not looking for millions* just what would be fair value for the name.

The name is not super important because I can roll what I had planned for radioredneck.com into bubbaredneck.com (another domain name I own).

Regards to All,

Zotz Mein


* Short list of domain names that have sold for at least a million dollars: drugstore.com, business.com, altavista.com.

[Mntsnow]

WOW...That one is a hard one! What size of company? Did they make any kind of offer yet? How much have you spent on that domain name so far?

Mntsnow

ps. I will be watching this thread closely http://www.sysopt.com/forum/biggrin.gif

[chipbgt]

uh..........guess whos going to spend all night long registering domain names?


me.

[Roy]

Consider a licensing agreement ~ Something upfront to test their interest and a guaranteed percentage of "something tangible" for a period of years, plus a renewal clause.

I say "something tangible" because Amazon.com, for all it's stock price has soared, has yet to make one penny of "profit".

It's somewhat like the movies, where a percentage of the gross turns out to be zip. It's amazing how a blockbuster can do $500 million at the box office and never make a profit.

[This message has been edited by Roy (edited 12-28-1999).]

[SysOpt]

Assigning a value to SysOpt.com for the acquisition was difficult to say the least, and of course ends up being fairly arbitrary in the end. However, SysOpt isn't just a domain name, it's a site complete with thousands of pages, millions of visitors, etc.

However, here are some metrics/things to consider for a domain name alone:

-Traffic logs for the domain name. Is anyone visiting it just by typing in the name without it having been marketed? (prolly not in this case http://www.sysopt.com/forum/smile.gif )
-Size of the company that's interested in purchasing it
-Company's intent: do they plan to open a chain of 100 stores called Radio Red Neck and without the domain name, they're screwed?

Scott

[Zotzmein]

Scott,

Save for the fact that they both have domain names, I fully agree there is absolutely no comparison in the value of a well-developed and highly trafficked site like SysOpt.com and the value of a simple domain name.

---------------------------------------------

Mntsnow,

The company doesn’t seem too large, though they claim to have a lot of big time associations. They haven’t proposed an amount yet, I suppose sometime today.

Besides the two mentioned above, I also own among several domain names santaswebsite.com. I’ve actually turned down an offer for twenty thousand dollars. It was a reputable bricks and mortar company wanting to establish an online “holiday oriented” presence.

I’m holding out to get onboard with a quality web-based company willing to give out chunks of stock instead of straight cash. Such proposal is fraught with risk but I’m willing to gamble.

I purchased the three web sites mentioned when the fees ran a hundred dollars for registration. At the time I registered santaswebsite.com their where no companies offering free domain parking, so I paid an additional fifty dollars for parking with the company who did the registration.

I’ve also renewed my registration of santaswebsite.com prior to the recent price drop (I think) so I paid fifty dollars for the yearly renewal fee (it's now thirty five via network solutions).

I originally registered radioredneck.com because I intended on pitching, to a local country station, developing a late evening half-hour or hour-long show built around talk, emphasis on computers, cowboys and the web, in studio local bands and the latest material from new and popular artists.

The goal was to simulcast the show over the Internet and allow for real-time listener participation through text, audio and netcam “chat rooms”. Unfortunately I’ve not had the time since registering the name to finalize the particulars of the proposal*.

The dream of course was hoping that the format would do well and then syndicate the show across the country.

I did develop santaswebsite.com about three years ago without any site advertisement or outside financial support. It featured among things the ability to write Santa Claus a letter in which he actually sent back a response. I don’t mean some cold auto responder but a hand typed reply to each dear Santa letter. It was overwhelmingly ambitious but a lot of fun, the numbers the site generated during that season proved that even with simple search engine registration it had real “curb appeal”.

Regards to All,

Zotz Mein

*A fancy way of saying I know nothing of radio production, little about country music and the “good old boy” I was going to use as the ringmaster for this horse and buggy show was arrested and thrown in jail for failure to pay child support.

Rest assured I’m still not deterred; cowboys love computer with same passion as other computer enthusiasts who populate the web.


[This message has been edited by Zotzmein (edited 12-29-1999).]

[Zotzmein]

They’ve opened up negotiations at twenty five hundred dollars. I’m countering with a firm five thousand dollars.

However, I’m willing to give them a twelve-month exclusive lease for the domain radioredneck.com at five hundred dollars with an option on a second year at that same fixed rate.

During the course of their lease they may purchase the site out right for five thousand dollars plus the costs associated with transferring the domain. Likewise I will give them first right of refusal in the event that another party becomes interested in purchasing the domain.

This would allow the company to get the site off the ground without a great deal of upfront expenses. If the site proves profitable, then it would behoove them to purchase the domain out right, if not they would only be out five hundred or in the event of them optioning the second year, a thousand dollars total.

What do you think?

Regards,

Zotz Mein

[Mntsnow]

Well in my "untrained" eye...Not a bad investment on your part! http://www.sysopt.com/forum/smile.gif

Mntsnow

[scotter]

thats a good Idea but dont cut your self short by giving them a $ amount for the buy out yet, just make it open to negotiations at that time http://www.sysopt.com/forum/smile.gif what if the site takes off and the Name becomes worth a lot more to them than $5,000 ?

[Zotzmein]

Mntsnow,

Untrained eye or trained, given that I've got roughly a hundred dollars wrapped up in the site and less than two years on the investment, I think it's phenomenal.

The reason I’m not jumping on the twenty five hundred is that I didn’t register the site with the intent to resale. I’m not rich and would love the money to build that new Athlon system I’m wanting but I’m not desperate.

In essence if this deal passes me by, I wouldn’t really be that upset. In fact I’m tickled to know that someone believes the domain name has value.

Perhaps you may think that strange but in my life there is a lot more to it than just money; the challenge of the dream and the learning that comes with the effort is priceless to me.

Regards to All,

Zotz Mein

[Mntsnow]

Zot,

I think you might have mis understood what I was trying to say http://www.sysopt.com/forum/frown.gif.....I think you have DONE GREAT! I personally only have 1 Domain name that is registered but with seeing what the chances are that someone/some company DOES place a value on just the name I think it can be a wise investment http://www.sysopt.com/forum/smile.gif

Mntsnow

[daveleau]

Zotzmein-
I'll give you $1,000,000 for your BBS posting name. http://www.sysopt.com/forum/smile.gif
Dave

[pickel]

Don't wanna pass that one up, Tim!!!!!!Jump on it!!! I could help you invest some of that million in some very lucrative opportunities
LOL. Happy New Year and to Brittany too!!

the pickel