Strolling Down The Passive Way Making Money Online

It used to be where you would stick the dart on the dartboard, but since 2003 the valuations are predictable. The simplest explanation is the lower the number of letters to describe the “verb or noun” the higher the multiple of cash flow.

For example, in 2005, I represented the seller of SantaClausOnline.com; which sold for a five multiple of cash flow. Keep in mind cash flow and gross income are synonymous. Had the domain name been SantaClaus.com the seller could have received a six to eight multiple; and if the domain name had been Santa.com the owner would have been paid up to a ten multiple.

There is another means of determining the value of a domain like the seller below of “Strollers.com”. Some domains are valued on “page impressions”. Seeing as the owner of this domain has “almost” the shortest number of letters to describe the noun he would receive in the range of $.50 per average page impressions monthly. Why do I say “almost”? It is because the singular “stroller” is searched more often than the plural “strollers”.

Even more specific this category of “stroller” or “strollers” is searched on more often by the keyword phrase “baby stroller”. Although to more accurately describe how domains make passive income they do not rely on search engine results, but on “direct URL type in”.

The owner does not disclose cash flow, so relying on a 3rd party tracking source, Quantcast.com, it is determined that the estimated average unique visitors monthly is (see Quantcast.com charts below) approximately 60,246. As the domain is not “registered” in Quantcast we must extrapolate the number of “page impressions” by utilizing the number of average monthly unique visitors. This calculation approaches the old “dart board”, but in my estimation of the category I would project 2.5. Meaning the average monthly “page impressions” is approximately 150,615. Meaning then that the estimated “fair market value” of this domain name is approximately $75,000.

On the basis of the Seller’s Asking Price he will be holding his breath for an offer at nearly $3M. That said, the “vanity” buyer will often pay more than market price. For example, a distributor of strollers might pay double. A manufacturer of strollers might actually pay less than the fair value. The reason is they are focused on promoting their “brand”, not generic terms.

Strollers.com

Internet Business Guide Listing #7358

It is being sold as an asset – NOT on its current sales revenues and cash flow because it has only been operated on a limited part time basis by a “Mom and Pop”.