This post of yours applies to investing in general, regardless of the product (stocks, real-estate, domains)

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Absolutely, it is investing 101.

Thanks for being so “totally informative.”

As I see it (totally noob), there are two value propositions supporting domains: name-value and address-value.

The earned-value from PPC generation using somebody’s monetizing tactics, earning that 8.5X, and then there’s the speculative value created by matching the address to the buyer.

For example, redirected traffic from lipstick.com may be producing substantial revenue to earn it’s 8.5 multiple. But, Revlon would like to capture all that generic traffic, because it converts better to direct sales, precludes Max Factor et al from getting that traffic, and therefore the speculative value could be many times higher than its inherent/earned value.

I’m trying understand how past performance can be altered advantageously. Help me out here.

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There are many ways to look for potential in domains however this post wasn’t about value as it was about liquidity. Whether multiples, sales, leasing, for me it’s all the same. When and if I need to sell I want to have options. The more options and the more “industry standards”, whatever those standards are, the better.

I just submitted last week for the first time my collection of .com names to auction a week ago (about 100 interesting domains) and I had to force myself to do it…precisely following the strategy you mention regarding liquidity…

Regards

Javier Marti
Trendirama.com

PS/ is there anyone you would recommend me sending those domains to before they become public in the auction? I am still on time to stop the process or retire any name I sell privately.

We are all witnessing what happens when a market suffers from a lack of liquidity and it’d be hard to deny just how important it is.

I think this is something that many of us early domainers have not fully realized. I know I have sometimes been blinded by long-term potential or by the valuations of domains that are sold on a fairly infrequent basis.

Thanks again for helping us figure out the secrets of making it in the domain industry Sahar. It is greatly appreciated!

Colin

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Thanks Colin for the kind words. Are you gonna make it to TRAFFIC FL?
Cheers
Sahar