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What makes a domain sellable, part 3

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Rick Latona
June 16, 2008


Rick Latona

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what-makes-a-domain-sellable-part-3/

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Rick Latona has written 4 articles for DomainInformer.
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For part three of this installment let’s use a phrase that I hear so often in business circles. Does it have legs?

For those of you that have English as your second language, you probably haven’t heard this phrase very often. It means that when your site is up and running, it’ll keep on running further and further. It implies that it can continue to get bigger and more profitable as time goes on.

Recently I sold sanssouci.com for only $3900. I had originally thought it would do more. It’s a suburb of Sydney, French for “carefree” and the palace of Frederick the Great near Berlin. I’ve actually been there. Crazy dude wanted Roman ruins in his backyard so he went and built his own. Funny thing is that now those fake ruins are antiques because it was so long ago. Anyway, back on topic, the name doesn’t have any legs. I should have known better. That’s why I didn’t really make anything on it. How much can you make off such a name if you owned it? I ended up selling it for its true market value.

SkiResorts.com on the other hand I sold (via Moniker to give credit where credit is due) for $850,000. Just think. If you charged various resorts $10,000 a year to be listed on the site you would only need 100 customers to do $1,000,000 dollars in revenue per year! This goes back to my first post in this series which was about “the obvious use of the name“.

A friend of mine runs Divorce.com. Any rookie domainer would agree that is a great name but how great is it? Well, how many divorce lawyers are out there which might pay 1000 a year to be listed? My guess is greater than 3,000 could be talked into signing up. That would be 3 million a year in revenue! That my friend, is legs.

So now that we have looked at the obvious use of the name and its emotional curb appeal, make sure that you can accurately guage how big the oportunity could be. How long those legs really are. Don’t fool yourself either. I’m sure those 3,000 divorce lawyers are only a fraction of the 10,000 or more divorce lawyers out there practicing law. I’m equally sure that it would be hard to get more than 1000 dollars for them to list.

Be realistic.

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