Lease rental appraisal

[kemshell]

Hi Guys

I have owned Wakefield.co.uk - Local information, business listing and ISP for about 6 years. The site is now under developed, current traffic is about 350 unique visits per day. I am in discussions with another local business who plan to launch a community portal/business directory in wakefield using a far less "brandable" domain. What do you think would be a fair rental price for Wakefield.co.uk - Local information, business listing and ISP on a lease lasting a few years?

Paul

 

[retired_member6]

There seems to be an influx of embedded keyword links lately, let's hope you do want an apprisal, mind you, it's still good for acorn I suppose. Once upon a time nobody would have wanted their domains seen in an engine from here, repleat with cheap need money asking price and valuation compared to full end user cost at a later date.

 

[rob]

Hi Guys

I have owned Wakefield.co.uk - Local information, business listing and ISP for about 6 years. The site is now under developed, current traffic is about 350 unique visits per day. I am in discussions with another local business who plan to launch a community portal/business directory in wakefield using a far less "brandable" domain. What do you think would be a fair rental price for Wakefield.co.uk - Local information, business listing and ISP on a lease lasting a few years?

Paul

£5kish pa initally but would spend a few quid to get a contract drawn up legally and checked over by a domainer who knows his stuff.

 

[rob]

£5k is based on other similar domains and earnings, it is quite possible to get it earning 10-15k pa and generally domains of this nature are dev'ed with a profit share agreement - thus me taking the 'low' and going 50 : 50 on it

I agree over valuation does kill domain sales and also deludes people into thinking they are sitting on a gold mine, however if this is a 'proper' rental the figures would add up, but if its Dave from the local school trying it on then its not going to happen

Incidently I have almost rented a couple of names but opted for final sales (for lesser cash) as I was not 100% happy with the whole setup ie. bloke renting uses X.co.uk and 2-3 years time can DRS / get legal to claim name etc. Lots of hassle.

I havent had coffee yet so wont attempt the rest of the reply but if I read it right there is £5k on offer that is very doable

 

[BFTUK]

Lee,

The keyword links is a new mod that the admin has installed, it pulls the meta title from the site that is linked to.

So no intentional keyword dropping when linking to sites.

Ash

 

[rob]

Rob, if you have any rental figures I would love to have them, I will get them published to be shared with the world

If they were able to go public domainprices.co.uk would have them

I still think my money is safe though.

however...

They just need to place a £30 advert in the local paper for an advertsing sales person/publishing

Pay them comm only and get them to call every business in the area, charging them only £99 a year for a listing.

I've calculated that if you got a 10% take up, the site using this revenue stream alone could generate 150k, 50% to the sales rep and £75k for the site owner.

Costs would obviously be around 5k, maybe give the sales person £100 a week and 35% comm, would get you a more stable salespeson, not always better, and would make you even more money with the percentage being lower.

Yes - all very doable, perhaps I priced it a little low

Ideas are one thing and actually doing things is another so in a case like this it could be worth linking it as a rev-share , but again thats where the fun starts with renting domain names and would warn anyone doing it to get a decent (not just some bandit who doesnt know what a domain is) solicitor and a domainer to form up a contract.

Edit: above you did mention rental figures scare people off, but so does any price. I agree a 'let' or a sale is worth something, however I would hold out for something decent rather than let things go for the first offers in.