Lyrics.co.uk

retired_member27 · Feb 19, 2006

She's probably not happy now as she thinks you've just killed yourself. You should listen to your own advice.

Lucky Luke · Feb 19, 2006

Posted by apd
You should listen to your own advice

In the "think twice, everyone" in my post, the 'everyone' included myself... a little too subtle, perhaps.

Thanks, Luke

Admin · Feb 19, 2006

FYI I've zapped the telephone number from Rob's post

SF · Feb 19, 2006

mofo said:
I would prefer if the sale price came from official sources or Andy himself. Trendmedia paid a decent price for it (more than I expected or would have paid myself) and well done to him, couldn't happen to a nicer guy. At the end of the day it's business.

Nice post Mo

ratboy · Feb 19, 2006

Nice deal Andy.

Bit confused as to why i'd be p*ssed off with this. I sold because I needed the money to buy a playboy mansion and associated tit tat. Had some fun, holidays in the sun, new Ferrari and even made some new friends down the tennis club.

If the deal is as people say it is, then I think Andy is a player and is welcome at my mansion any day.

trendmedia · Feb 19, 2006

lol

Thanks for the amusement

It was a good deal between us and Ratboy.

The domain was was purchased for development...
But we decided to broker the sale which will be (Im assuming) published in DNJournal this coming Tuesday.

Needless to say Im now sitting in a hot country with Jarrod sipping some beer dreaming of being at home in the rain...

Have a good weekend all.

Andrew

((p.s - It was a joint venture/brokerage with myself and Jarrod.))

funkymedia · Feb 19, 2006

Hope your having a good time lads!

paymatters · Feb 20, 2006

SOunds like good business for everyone. Nobody buys something expecting to lose money on the purchase! (except a car!)

Jarrod · Feb 20, 2006

Quite harsh but very entertaining!

I agree, a good deal all round though. I think that Shaun got himself a bargain, even at the price he paid... so it could be us knocking back the whiskey in a few month instead!

Although saying that myself and Andy did get through quite a few of those yesterday at the pool bar.

BTW, Shaun is a top buyer and great bloke to deal with.

bb99 · Feb 20, 2006

Jarrod said:
BTW, Shaun is a top buyer and great bloke to deal with.

You would say that, as you walk back home with a pocket full of dollars

retired_member9 · Feb 22, 2006

It's a hype. At $80K it is *not* a bargain, but insanity.

Jarrod · Feb 22, 2006

vizzy said:
It's a hype. At $80K it is *not* a bargain, but insanity.

Please explain your opinion Vizzy?

Sales like this should be welcomed as they contribute to the growth of the .uk market and therefore should benefit every domainer who is reading this with solid .uk domains in their portfolio.

This sale was based on a revenue multiple which is in line with current standards.

retired_member6 · Feb 22, 2006

£45,000 very nice.

retired_member9 · Feb 22, 2006

I don't mind growth, just don't like bubbles =)

Jarrod said:
This sale was based on a revenue multiple which is in line with current standards.

ok, this is previous owner stats as posted here:

Code:

Stats from Sedo (October only): 5,349
CTR: 18.17% = 967 clicks in October

so even at $0.10/click (which is high for this keyword), month revenue is $96.7

what kind of revenue multiple we are talking??

paymatters · Feb 22, 2006

What's the biggest .co.uk sale ever?

lesurf · Feb 22, 2006

Only time will tell if this is a good deal or not....

Standard offline businesses would normally sell for 2 to 2.5 times their annual sales revenue (not profit).

So the owner of the new lyrics.co.uk business in theory (and assuming we measure online the same as offline business) is going to want to be turning over at least £20K per annum to make this deal look good for him.

Is this possible? On CTR revenue alone it's a very tall order but IF there is a low cost way of making money from this e.g. charging for access, music downloads, advertising etc then I don't personally think that this would be an unobtainable amount of sales revenue to obtain. Please note the "IF" as this is largely dependent on the legality and/or feasibility of selling access to material which is copywritten and controlled by huge faceless music labels.

The other thing to consider here is the amount of free publicity the new owner will get from paying such a high sum. This will be publicised no doubt in broadsheets etc, thus driving people to the site. Therefore the money he would have had to have spent aquiring users/traffic is saved by the publicity he receives from the free PR.

retired_member16 · Feb 22, 2006

I hate to say it.

safesys · Feb 22, 2006

Standard offline businesses would normally sell for 2 to 2.5 times their annual sales revenue (not profit).

A big consideration is that few offline businesses achieve the same kind of profit margin you can get with domains so longer multiples can be justified - although this one is a bit of a stretch to justify on multiples especially given the copyright aspect of lyrics.

retired_member6 · Feb 22, 2006

Perhaps the buyer wants to develop the site or believes someone will one day? There's no trademark issue. The sooner people forget that EPC and traffic isn't the be all and end all, the better.

Edwin · Feb 22, 2006

It's a mistake to think of a domain purely as a business when it's not yet been developed on. How do you calculate the value of a domain which can be INSTANTLY remembered, close to 100% of the time, after it is flashed up on TV, mentioned on the radio etc. Instead of dozens of ads, it might just take one for the site to "sink in". Prime generics are much closer to advertising than they are to a "business"...

Compared to that the price is a steal. And if it were to be used, for example, by a business intent on making use of licensed legal copies of (some?) lyrics as part of its business model then the sky's the limit. I'm betting a domain like that would make it MUCH easier to open a lot of other doors, too, such as angel/venture capital, business financing, industry tieups and partnerships and so on.

Look at it another way... on the basis of the quoted October stats alone (and discounting any future growth of the web or any effect from a future site behind the domain and return visits/word of mouth) the new owner can look forward to over 600,000 "free" visitors in the next 10 years. That's an awful lot of eyeballs and chances to sell/promote something.

When you're at the top end of the generics market you might as well throw away the "multiple of revenue" tables - it's a whole different kettle of fish!