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What's the best way to forward his traffic to my site? Can he simply make changes at his domain registrar? Must he pay for hosting and redirect from the host's server? Is the safest way for him to build a one-page web site that simply contains a brief sentence with a link to my site "For medical procedure information, please visit www.mysite.com"
Also, I need to be certain that whatever method we use does not raise duplicate content issues and I need to make certain that any traffic he sends me will show up in my AWSTATS reports. I am not sure how domain forwarding works and if/how it would show up in these reports.
But think carefully; is it your domain they want, or other 'similar' names; in other words, how valuable will those few extra visitors a day be?
Check his site - code view - and see what kinds of key words it is optimised for. It may not be your niche at all, despite the name.
Also remember that the traffic he's getting may be faked; either redirected from elsewhere, or created by him.
What's your site's conversion rate? if it's 2%, then he's sending one paying customer per day. What's your average customer's spend? And how much is profit? And how much will you get, once you paid him his fee?
Personally, I'd multiply the monthly figure he's asking by 12 and offer to buy the domain. But if that sum seemed too high, I'd just walk away.
But be nice. His next trick may be to open a porn site if you decline!
All in all, the chances of this being a good deal for you is very remote indeed.
[edited by: Quadrille at 4:59 pm (utc) on Jan. 6, 2008]