2006 witnessed a resurgence in the PPC (pay per click) domain market. Two events, in the first quarter of last year, sparked renewed interest in the category of eBusiness. The sale of Ultimate Search for $165M, and the sale of gambling.com for $20M.These events validated the PPC Income category and the formation of dozens (hundreds if you include the small Private Equity Groups) of “Internet Real Estate” funds. After a year of sometimes frenzied buying in the category the market has tempered. Last year the high end multiples for domains that could generate passive income ranged from an 8 to 12 multiple, this year’s transactions occur in the 7 to 10 multiple range. This change in range is also due to the increasing interest rates as other vehicles for passive income, with perhaps less risk, are yielding a 10 multiple, where last year an 8 or 9 multiple was more evident.
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Maybe it can get a little complicated if used in a different way.