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Re: Should I sell my domain name?

From: Cliff Kurtzman <moderator_at_o-a.com>
Date: Mon 31 Jan 2005 09:56:08 -0600

Rob Frankel is correct that the brand and domain has lost
a lot of value to me, and I agree with him that one needs
to clean house from time to time. Finding someone that
values the domain more than I do should not be too hard.
Finding the party that will maximize the value I get for
the domain is a bit trickier.

Phil Kaufman's idea of buying year20xx.com domains is
interesting, however those domains were snatched up in the
1990s when the year2000.com domain became so very popular.
I do, however, embrace the idea of taking a long term
perspective, and I am the proud owner of year10k.com (not
kidding).

Jim Sterne got the math right, and in fact $9,500 cash in
hand is worth more to me than keeping the domain. The
question then becomes, can I find someone else, without
going through too much trouble, that will give me a better
value than the first offerer? Taking the first offer that
comes in is usually not a good way to assure you are
receiving fair market value. How much money am I leaving
on the table?

Sean Hayes points out that trends show that domains are
increasing in value again... and he is absolutely correct.
Large $ domain buyouts are getting more and more common
after a long period of relative inactivity.

Keith Hickman makes a number of astute observations,
echoed by Johann Erickson.

Year2000.com has a solid Pagerank 7, which is why it is
valuable. It also has solid linking... a link report shows:
Google/ AOL: 399; AltaVista: 13,500; MSN: 5,592;
Alltheweb: 12,700; Yahoo!: 12,700; HotBot: 3,930. Even if a
percentage of these links disappear, the pagerank will
likely be maintained... and there is a good chance the
Pagerank of the site would go up to an 8 if additional
content were added to the site.

Adastro.com (my company's web site) also has a pagerank of
7, but it's pagerank is only that high because of the link
from year2000.com. Once I sell year2000.com, that link will
go away, and adastro.com's page rank will drop significantly.
That means that people doing organic searches will be less
likely to find search results from adastro.com. But honestly,
ADASTRO is not a retail business, and I don't expect that the
business will ever get much if any revenue resulting from
people that find it doing organic searches. The link from
year2000.com would be a lot more valuable to many other
businesses than it is to ADASTRO.

Keith is also correct about the value of links from high PR
sites... going rates for a text link from a strong Pagerank 7
site are $110 - $140 per month, and the trend is increasing.
His idea of making a pay per link directory out of the domain
is exactly what the prospective buyer wants to do I believe.
Back in the late 1990s, that is what I was doing with the
domain... we had over 130 text links on the home page, and
people were paying $100 - $300 per month for those Y2K-related
links. It is interesting to see that, for very different
reasons, that same business model has once again become viable
for the site. But still, ADASTRO is doing more interesting
things (to me) than selling links now, and I'm just not in
that business anymore. If someone will give me a good value
for the domain, I'd gladly sell it and let them spend their
time implementing the business model.

Trevor Johnson recognized that others might value the domain
more than my initial offerer does, and he suggested an ebay
auction. Long time members of this forum will recall that in
the last days of 1999, we did in fact list the domain for sale
on ebay, and the bidding went up to $10M. There was global news
coverage of the auction. It then turned out that the highest
bids were fraudulent, and it caused eBay to change the entire
way that they conduct high-value auctions. It was a shame
because if the fraudulent bids had been prohibited, we would
likely have gotten a very good price for the domain at the
time... we likely had cause to bring suit against eBay over it,
but life is too short.

Over the weekend, I did post notices on several domain appraisal
bulletin boards, and I listed the domain for auction on sedo.com.
Those actions have in fact brought in one new bidder, and my
original offerer has now raised his bid to $15K through the
auction process. I'm presently waiting to see if my other bidder
wants to beat that offer. Of course, I'll believe the whole thing
is real only when I have cash in the bank.


--Cliff

Clifford R. Kurtzman, Ph.D.
CEO
ADASTRO Incorporated
A Starhold Enterprise
http://www.adastro.com
(281) 480-6300

Business IS Rocket Science



Received on Mon Jan 31 2005 - 09:56:08 CST


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