fenway - 10:42 pm on Feb 16, 2011 (gmt 0)
Sounds like John has a problem in monetizing his traffic, but that aside, I couldn't help but get hung up a little on Wheel's logic of how easy it is to replicate the presence of a long standing, organically indexed domain.
I can drive hundreds of unique visitors to a site using adwords, for 10 cents a click. So say $20 a day. Or $600 a month.
So for about $6000 I can guarantee (guarantee!) that I have hundreds of visitors to my copycat site. Why on earth would I pay you $10,000? Or even $5000?
@wheel This is a fairly aggressive assumption. Very possible its a space where Adwords requires a high 1st page min CPC...possibly even $1.75 or so. In those spaces, you're getting into six figures a year in Adwords advertising(6000 clicks/mo * $1.75 = $10,500 * 12 mo = $126,000) that this guy is getting for free, now.
You get more money if you have something extra that can't be replicated. If you own a market, you can get extra because they can't do it elsewhere cheaper.
What can't be replicated, is that you can't build a site to be indexed by Google in 2004, which often translates into very stable rankings that are hard to surpass today. Very little fluctuation in top spots these days in competitive areas. Just like I can't buy Microsoft stock in 1986.
Isn't the domain name also what can't be replicated?
You do not get any extra money for a two word domain name. You do not get extra money for a couple hundred random visitors a day. And you do not get extra for 'potential' or 'growing market'.
Don't two and three word domains, sell for tens of thousands all the time? Maybe I'm missing something in the logic. I do agree with you on nothing extra for "potential."