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So how much would you need in the bank to generate your current daily PPC income? Some in the domain space would need well north of 100 millions US$ to match their current returns.
I was curious about this question so I asked my assistant Mandy to look into it. Here are the results:
Interesting stuff - how much to estimate it would cost to purchase domains generating $100 per day in PPC?
—-ANSWER—-
No set price. At times we got them for little or nothing (negotiation skills help) and other times paid fairly, but always, in comparison to other investments, its a fraction.
Am I correct in assuming that any portfolio generating $100/day is worth the average 8.6X revenue, or approximately $314K?
—-ANSWER—-
Not any portfolio, no. The standard sale multiples per domain, set by Name Development/Marchex deal in 2004, is x8.6. However, it means some names sell for much more, some for much less. The value of a portfolio depends on its overall quality. If it a sensitive portfolio you will get a fraction of that 8.6x (around 1x-2x), and if its a clean generic portfolio you will get more. Adult domains go for about 5x.
For those just starting their portfolios, it seems to me that it would require a pretty large initial investment to buy domains that have traffic without development. Especially if you go after gerneic and type in names rather than buying old/expired traffic domains.
What do you think it would cost you today if you were to build a portfolio from scratch making $100/day?
—-ANSWER—-
Less then 100K. Have to look for the deals, learn the business, make smart deals, and learn learn learn.
Just my opinion of course.
Sahar