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Old 04-23-2005, 11:52 AM  
slapass
Too lazy to set a custom title
 
Join Date: Nov 2002
Location: Earth
Posts: 14,625
Quote:
Originally Posted by KRL
Pricing is the toughest part. There are so many variables that enter into the equation.

With Men.com for example to me it was like buying real estate. I knew in the worst case I could always sell it for what was paid so it was like buying a real life property with inherent ground value no matter what biz model I put on it.

This month it goes on autopilot after a year of building with minimal overhead now. So now the cash flow will be about double what was on there before buying it and the ROI is great. I also have a possible merger/acquisition deal on it we're working that is very very tempting considering its only been a year.

So you have to say to yourself if you can make 3 to 1 on your investment in a year is that a good price? Yes and no. It depends what your philosophy is on making money. You can hold it, let it gain in value, or make a quick nice hit. Either way you come out great.

So the point is you can't regret your selling decisions and this factor impacts the price. Because you can't be greedy if you want to sell something. You have to go with what the market bears and what buyers are out there at the moment and again there is nothing wrong with making a nice profit, or a fantastic profit. The idea is you bought something for X investment and sold it for Y and made something.

A good thing to do is test the market. Put feelers out there and see the responsed you get. Generally you'll get a good idea fast what kind of range you can hope to get.

Realistically right now I could get between $2 to $3 Mil for Men. Maybe a year from now another mil. And so on. So anyway you look at your pricing its what it is at that moment and you should just say to yourself OK now is a good time to take out your profits on the deal or wait for more. Again it all depends on your personal perspective.

On the other hand you don't want to hold on to investments too long. Often this is when you miss the peak price selling moments. Buying and selling is where the fun is also.

You can also become a bit eccentric like from domaining. I'm kind of having this happening to me where I'm buying so many domains its becoming obsessive every day. Most other large portfolio domain guys have this same problem. They can't stop themselves from buying more and more and more domains. Point is you have to condition yourself to becoming a seller aka trader also. Become as obsessive in selling and taking out profits as you are in buying.

Ilove when you write stuff i have to rpint out ot look over later. Well worth the reread on this one.

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