sparkie

Hi,

I'm pretty new here and looking to get into domain name mgt. I'd be really intersted to hear everyone's views on what you all think would be the best way to get into the market with a budget of about £50k?
What sort of return can you expect from the PPC ads which appear on the holding pages? I want any growth in the value of the domains to be a bonus so mainly looking for income at this stage, is that realistic?

Do you think its possible to buy a decent domain for say £5k and achieve income of circu £50pm from ads?

Any views welcome!

Tim.

rob

Hi Sparkie,

£50k is a decent budget - it could be a case of buying one or two nice names for that or spread it out further. How 'up' with domain / web stuff are you - as buying a nice generic and developing it up could / would return far more than buying names to park.

PPC earnings vary depending on what keywords you are targeting eg. obvious big payers are finance related.


Yes.

I would advise against buying domains that are trademark / typo based earners and stick to generics if possible, no point forking out for a potential liability.

Cheers,
Rob.

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yesterday

Hi Sparkie,

If I were in your position I'd hold onto your cash right now.

There are names to be had that are available that can get you a few quid a month and they will cost you a fiver, but are hard to find.

Nevertheless I suggest buying/playing with a few much cheaper names until you understand the market much better.

It is a fool who goes in buying with big bucks before understanding what is going on.

There are quite a few sharks too, it is best to know who you're dealing with.

You can get a great portfolio if you know what you were doing with £50k or you can get a heap of crock if you don't. And you are very unlikely to be lucky - there is no substitute for knowledge and experience in this market.

JMO

yesterday

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sparkie

Thanks for the replies. From a time/hassle point of view i'd rather 10/20 decent domains to a 100/200 average ones. I will watch for a while and get a feel for prices i guess sedo would be one of the best places to monitor the market?

What would you say something like fishingboats.co.uk would be worth?

yesterday

Well, if you're looking at revenue generics then the price to you is worth whatever multiple of years you want to pay.

e.g 5 years revenue gives you approx 20% return per annum (assuming all other sale factors in your favour.)

yesterday

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sparkie

If i could achieve 20% per annum return then i'd be very happy.

Is that the sort of level that you'd expect?

I guess the hard bit is proving the revenue when buying something as can be manipulated.

yesterday

quite.

The multiples are low because of the high levels of traffic and revenue variance, and not all of it fraudulent.

A domain can show all signs of being profitable today and it can wilt within a few weeks, similarly a seemingly benign name can suddenly turn a good return.

Knowledgeable members here have bought domains for as much as £45k that have huge ovt etc and that now have minimal - I'm sure it's not purposeful manipulation (or am I!).

The current low prices of domains generally reflect the risk involved which, as the market matures, will become slightly less of an issue.

That is why, to start with, I suggest you go for lower budget domains ( < £1k) until you understand and begin to "feel" what sounds right.

yesterday

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preserve africas wilderness and help the locals survive with bees.. buy some yellow trousers

yesterday

You'd be wise to privately put purchase suggestions across experienced members before you buy, or better still go through an experienced broker like rob (previous post) who you can trust to know the market as well as anyone can.

yesterday

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fred

and if all else fails, I can sell you i-spent-50k-and-all-i-got-was-this-lousy-domain.co.uk for £50k

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Yes, I know it's still free to reg
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As has been said, learn the market before you spend £6 let alone £50k

It will be time well spent.

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