Is 24-36months worth of revenue worth selling?
 

I am looking into buying a domain name and he wants 24-36 months worth of revenue for it. This does not make a whole lot of sense to me.

I could buy the domain, sit on it for 2years then wait for it to pay for itself off and I basically got it for free.

It?s like buying a house that pays itself off in 2years. WTF?

how solid is it? any work involved?

3 years of revenue is pretty high.... but you won't get a good answer unless you say what you want it for and why it has potential...

There is a blog setup on the domain that generates solid $$$ ever month.

If the domain name is babes.com and you can buy it for three years type in revenues it could be a GREAT deal.

If it's something like amatuerpages.com (typo) or a SEO domain, then you may be playing with fire.

Does the domain have value aside from the traffic?

it must be a nice domain if he is trying to sell it 24x month revenue...is it really worth it ?

So it's an established website, not exclusively a domain name.

This totally changes things, and makes evaluation somewhat more complicated.

I wan't to setup a paysite on the domain. The domain has decent type-in traffic. The only problem is the domain is not an adult domain so im not sure how well the type-in traffic will convert.

Its not a "typo" domain. The domain is worth at least 10k without the traffic.

that doesn't mean much.... some tgps have plenty of bookmark/typein traffic. doesn't mean it will convert though, just because its typin traffic

The domain is also a PR4.. not sure how much SE traffic it gets.

So is this an industry standard? 24-36 months worth of "solid" revenue for a domain?

No
Standard goes from 3 to 12 months revenue actually ...

36 months revenue is a lot in any business.... but it should be lower in adult in my opinion... especially relying on SE traffic... under attack from the gov.... etc etc...

you never know, one google update might killed 50+ % of the traffic then it will be like you paid him 72 months revenue... just consider it for a while before you decide to purchase it...

Two or three years of revenues? If this were brick and mortar, that would be fair.

think so too...

In mainstream?

Definitely a lot higher than that. Two to three years is not abnormal for mainstream websites.

Make sure you can keep things at least consistant.

pay what its worth to you or less, forgot "industry standards"

Yeah its a mainstream domain name that can also be used for adult. The worst part about the whole thing is in March of 2005 they picked the domain up on a drop for $5600. :(

:thumbsup

I will most definately pay what its worth to me.

3 times revenue or 3 times profit
there is a big difference remember if you your operating cost was 80% then it would take you like 15 years to make your money back.