GoFuckYourself.com - Adult Webmaster Forum - View Single Post - Is the expired domains business market still profitable?

Quotealex · 04-03-2006, 05:11 PM

By profitable, I mean generating at least $2.00 per $1.00 invested.

I figure the cost of running this model for 1,000 domains would be around $10,500 which is broken down as follow:
- Domains cost from a registrar that do free URL forwarding: $8,000 ($8 per domain)
- Creating a landing page: $1,000 (40 hours at $25/hour including script, design, content)
- Maintenance of the network: $1,300 (1 hour per week at $25/hour X 52 weeks)
- Hosting: $120 ($10 per month for virtual hosting)
The annual expense after the first year would be about $9,500 if we exclude the landing page cost which is a one time expense.

According to information I got from various people, I figure each domain will get about 10 hits per day (some said 2 other said 20+), so the total traffic per year I expect to get from the 1,000 acquired domains should be around 3,625,000 hits. From these hits going to the landing page, I figure about 5% (182,500) will click on one of the sponsors links.
From that 182,500 sponsors visits, I estimate a conversion ratio of 1:500, which comes out to 365 signups.

Assuming the average signup brings $30, the generated gross revenue from this model is $10,950 per year for an expense of $10,500 for the first year and $9,500 the following years.

If my numbers are correct, I don?t see how the expired domains game is a profitable business!

04-03-2006, 05:11 PM
Quotealex Confirmed User Join Date: Sep 2001 Location: The Global Digerati Village Posts: 6,265	Is the expired domains business market still profitable? By profitable, I mean generating at least $2.00 per $1.00 invested. I figure the cost of running this model for 1,000 domains would be around $10,500 which is broken down as follow: - Domains cost from a registrar that do free URL forwarding: $8,000 ($8 per domain) - Creating a landing page: $1,000 (40 hours at $25/hour including script, design, content) - Maintenance of the network: $1,300 (1 hour per week at $25/hour X 52 weeks) - Hosting: $120 ($10 per month for virtual hosting) The annual expense after the first year would be about $9,500 if we exclude the landing page cost which is a one time expense. According to information I got from various people, I figure each domain will get about 10 hits per day (some said 2 other said 20+), so the total traffic per year I expect to get from the 1,000 acquired domains should be around 3,625,000 hits. From these hits going to the landing page, I figure about 5% (182,500) will click on one of the sponsors links. From that 182,500 sponsors visits, I estimate a conversion ratio of 1:500, which comes out to 365 signups. Assuming the average signup brings $30, the generated gross revenue from this model is $10,950 per year for an expense of $10,500 for the first year and $9,500 the following years. If my numbers are correct, I don?t see how the expired domains game is a profitable business!