Path:
ns3.vrx.net!news2.best.com!newsfeed.berkeley.edu!newsfeed.stanford.edu!logbridge.uoregon.edu!newsfeed.direct.ca!tor-nx1.netcom.ca!tor-nn1.netcom.ca.POSTED!nospam
From: [EMAIL PROTECTED] (Tom Carbon)
Newsgroups: comp.protocols.tcp-ip.domains
Subject: Re: Valuation models for names?
References: <[EMAIL PROTECTED]>
Organization: Lunatoys SA
Reply-To: devnull@localhost
Message-ID: <[EMAIL PROTECTED]>
X-Newsreader: slrn (0.9.4.3 UNIX)
Lines: 53
Date: Mon, 27 Sep 1999 20:48:02 GMT
NNTP-Posting-Host: 207.181.92.137
X-Complaints-To: [EMAIL PROTECTED]
X-Trace: tor-nn1.netcom.ca 938465282 207.181.92.137 (Mon, 27 Sep 1999 16:48:02 EDT)
NNTP-Posting-Date: Mon, 27 Sep 1999 16:48:02 EDT
Xref: ns3.vrx.net comp.protocols.tcp-ip.domains:8426
On Mon, 27 Sep 1999 18:09:18 GMT, Steven Katz <[EMAIL PROTECTED]> wrote:
>I'm trying to get a better idea of the current value of
>'good' domain names and what makes a name 'good'. The chart
[ criteria omitted: short is better, suitability for commerce, .com TLD ]
There is another criterion to consider: type-ins.
Certain common words and phrases get typed in on the browser bar.
Most browsers will then go to the corresponding .com site.
These are free visits... they don't come from links or search engines
(the "referrer" in the log files is blank), and they don't come from
bookmarks (even domains that have been inactive for a year or more
continue to get the same number of visitors, day in day out).
In many cases these visitors represent highly qualified leads.
Consider for instance the case of Artuframe.com, which acquired
the domain Art.com in late 1998, and got an instant boost of 5000
extra daily visitors who were more likely than average to be buyers:
From Mark Welch's mailing list:
http://www.egroups.com/group/affiliate-l/525.html
Or consider the case of Mr. Ron Bennett, who has occasionally posted
here, and who was sharp enough to grab the domain "tits.com" when
the CORE registry came online allowing previously banned words. By
merely redirecting type-in visitors to an adult-oriented site
(one that requires monthly subscription by credit card), I would
conservatively estimate his revenue at several hundred dollars a day,
probably more. Using a standard valuation of two years' gross revenue,
and not even taking into account continuing future growth in Internet usage
and traffic, that domain is worth at least half a million.
Note: adult-oriented sites also operate "affiliate" programs. But while
the commissions for, say, Amazon.com average less than $1 per book sold, the
typical commission per signup for adult-oriented sites is between $20-$40.
Hence, adult-oriented domain names with good type-in potential are
rather lucrative, and can pay for themselves ($70 registration fee)
in a matter of weeks. Needless to say, they are nearly all taken by now.
However, as mainstream Internet commerce expands, the revenue potential
of good mainstream domain names will catch up to and even dwarf that of
adult-oriented domain names. But this won't happen until mainstream
e-commerce sites are more willing to fully compensate affiliates for their
true new customer acquisition cost rather than merely paying a few percent
commission on the first small sale.
Drugs.com was recently sold for $823,000...
( http://www.wired.com/news/news/business/story/21266.html )
This was no aberration.
--
e-mail return address is not valid
