Lease Profit Share arrangements

[Champo]

I doubt we're the first to consider this but we run price comparison sites and we now have a pretty well honed model that is profitable and easy to replicate.

When we started we built our model on a ppc costing so we know that we can turn a profit without ranking... but when we do rank the margins get a lot better and so we're thinking that if someone has the right domain we could make some money together.

We would need top domains to turn a profit quickly and we'd need to know that it was going to be up for a given period... I suppose we could just rent but we thought this might appeal?

A good example of what we do is ipodprices dot co dot uk

Interested to hear what you think, thanks in advance.

 

[rob]

One thing to look at is TM's in domain names as it has been known for action to be taken be it DRS and zero cost hand over name, to settlements per name (4figs per name with similar names to your xbox one) or full on passing off etc.

Nice model for sure - but IMHO working towards generics would save legal issues.

 

[Champo]

Hi Rob

Don't disagree on the TM thing, but if you have one and use it sensibly then you can benefit the TM holder... and the ROI is very fast on product level domains.

 

[Champo]

We've had a load of really interesting PMs on this so I thought I'd put some more detail down based on what we've found.

Firstly the domain: we would need a really excellent domain that we couldn't afford to buy... because if we could afford to buy it why wouldn't we...

The owner needs to commit it to this project for a year or include a worthwhile severance package in the event of a sale.

The domain needs to be product rich and be very strong in at least 2 out of: high search volume, high purchase volume (those 2 obviously aren't mutually exclusive) good value per sale (c. £150 is spot on) and wide number of commission paying retailers.

In return we can monetise the site (to a degree that seems to have impressed the very few people we've discussed it with) build a traffic stream and ranking / PR.

We would take complete care of the site and pay a percentage of all sales.

If it turns out that we aren't chasing rainbows or looking for the moon on a stick we would look to do one site this year.

Hope this helps...