Matt
I'll wager they never get their money back.
The Overture tool shows 400,714 searches in December 2005 for sex.com. If that many people are accessing the site by search, how many more type ins are occurring?
If it's close to a million total visitors per month, with many adult programs paying fifteen to fifty dollars per conversion... I'd wager they'll make their money back.
If they choose to develop their domain so that it actively works for them, they can use subdomains: free.sex.com to go for all the variants.
My mind is racing with all the monetization efforts that could be done to extract maximum value from it.
You could sell the redirects on monthly basis; price decided by auction; or even sell the type-in traffic on a CPC basis with not a lot of programming. License to print money that one.
I seem to reecall a judge valuing it at $64 Mill so way off teh mark, or big bargain
To me, its not about how much I can get, it is about how much I would need to live a reasonable life and never have to work again. But I guess I never had a mind for business.
I'm not in that market, but, if I were then a higher price would have seemed acceptable.
$100 million for a long term corp would have seemed reasonable to me. At $14 million it is a bargain, maybe I need to get into that market?
$14 million seems like a bargain price to me.I'm not in that market, but, if I were then a higher price would have seemed acceptable.
$100 million for a long term corp would have seemed reasonable to me. At $14 million it is a bargain, maybe I need to get into that market?
Agreed. The $14 million is not meant to be returned on within a few years, but more.
"lease out redirects" above: what does this phrase mean? can u give an example?
Because the domain is going to get tons of type-in traffic i'd lease that traffic out via redirects.
So, let's say you run www.adultwidgets.com and want some of that traffic; you'd bid in my auction of have all requests to www.sex.com redirect to www.adultwidgets.com for a month. Next month somebody else gets it; or you again if you bid high enough :)
i would setup a adult yahoo clone with 60-70% rev share with as many niche adult programs i can get my hands on, at the end of the day the old owner was very stupid setting up a adult ppc search engine and stupid selling it for only $14m.
200,000 uniques a day at $3 CPM = $6,000 a day x 365 = $2.2mm a year
At $14mm, that's roughly a 15% return. Good deal for the buyer.
If adult traffic only pays $1.5 CPM, then income is only $1.1mm a year, which is roughly 8% and close enough to the risk-free rate to be uncompetitive.
What does adult traffic pay these days?
p.s i am not in the adult business but you just need to look at all the other older adult sites and you see where you make the money.
Built a brand and keep it fresh your income will grow.
if i had sex.com i will spend another $2m on ppc and get the brand out there anyone types sex in google sex.com is no1, the worst thing they can do is be all big headed (pay ppc you stupid its sex.com)
