> He said he would sell it to me for $40k. I offered $20k, which he refused but he said if I had any domain names generating ad revenue, we could do a deal of domains and cash. He said he would accept a lower amount if I paid in Bitcoin.
> So we worked out a deal where I gave him $20k in Bitcoin and a domain that was making about $9k/year in ad revenue, and he gave me the domain friendster.com. Now I was the owner of the domain name friendster.com.
I don't know anything about how to project future ad revenue of a domain, but would this be likely to be valued at only $10,000? Unless I'm misremembering my limits, even if it made $4,500 next year and continued to cut in half every year after that, it would still account for $9,000 of revenue projecting indefinitely into the future, even bumping that up to something like 60% of the previous year's revenue it would already put it at more than $10,000 (although I don't know whether ad revenue tends to scale with inflation or not; my instinct is that the prices of ads probably would roughly increase with inflation over time)?
I know I'm nitpicking a bit about the title, but I can't help but actually be curious now that I thought of this.
> So we worked out a deal where I gave him $20k in Bitcoin and a domain that was making about $9k/year in ad revenue, and he gave me the domain friendster.com. Now I was the owner of the domain name friendster.com.
I don't know anything about how to project future ad revenue of a domain, but would this be likely to be valued at only $10,000? Unless I'm misremembering my limits, even if it made $4,500 next year and continued to cut in half every year after that, it would still account for $9,000 of revenue projecting indefinitely into the future, even bumping that up to something like 60% of the previous year's revenue it would already put it at more than $10,000 (although I don't know whether ad revenue tends to scale with inflation or not; my instinct is that the prices of ads probably would roughly increase with inflation over time)?
I know I'm nitpicking a bit about the title, but I can't help but actually be curious now that I thought of this.