IDN Traffic Domain Multiple

[ptaylor]

What sort of multiples are generic IDN domains trading at?

[alpha]

What sort of multiples are generic IDN domains trading at?

similar to .mobi

low to zero x big number = xxx - xxxxx

[domainguru]

What sort of multiples are generic IDN domains trading at?

They aren't.

[rhys]

We live in a pre-traffic world ptaylor where IE7 has only begun to roll out and where the masses are yet to discover what the URL bar is for after years of ignoring it when ascii domains ruled the earth. We don't sell for multiples because that method of valuation would handicap us - most of us can understand the likely future value of the keywords we hold. Pricing is a rough art right now. Filled with opportunity and some peril for those who don't have the means to confirm the meaning of the IDNs they buy.

[alpha]

Things are not so different across the pond with Ascii's.
Hell, you've seen the domains being reported at DNJ, i doubt a lot of them get any overture, let alone type-in.

Many domains tend to sell for a multiple of PPC earnings. In 10 years time do you think the baseline will move to some other metric?
It already has..

...No good domain portfolio has changed hands since BuyDomains and that business would have sold for considerably more than the rumored amount had the company’s former owner been engaged in selling advertising alone, vs selling his names. Prior to that there was ‘Name Development’s’ sale to Marchex (Yun Ye transaction). No large, high-quality portfolios have changed hands since. Other sales have been smaller or split-portfolios consisting of good names interspersed with trademark issues. Individual names often sell for 100 years PPC.. No high quality domainer would dream of selling a portfolio worth potential billions to a third party for 10-12X PPC revenues. PPC is a flawed multiple because it works off a rev-share. If you buy a portfolio for 10X and it is on a 50/50 rev share (after “cost of services” through Google Adsense) that means you sold your portfolio for 5X what Google could make with it. Maybe 3X if you exclude the amount Google shaves for smart pricing. That is so insanely cheap. Only a fool would give names away like that. If I were selling I would pick a walk away number (the youtube style multiple) or I would sell names individually. The breakup value of large portfolios will be in the billions if they aren’t already.

quote courtesy of Aaron Wall / Frank interview
http://www.seobook.com/archives/002242.shtml