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Monetisation of your domains, price?

jam

Top Contributor
If someone was to create a website for you and use your domain name, and this website was to make over $1000 a year how much would be willing to pay for the service?

Would you be willing to pay a setup fee? And at what price?

Would you do revenue sharing? 50/50?

If all you did was point the domain name server to the website and everything else was done for you and the site generate $1000+ per year how much would you pay for this?

Can you give me pricing points for the following values.
Website making $500-$1000 per year?
Website making $1001-$2000 per year?
Website making $2001-$5000 per year?
Website making $5000-$10000 per year?
Website making $10000+ per year?

For example:
I would pay $X setup and X% revenue share for a website making $X - $X per year

Please put leave comments if you have any ideas on how one would offer this service and how a pricing structure would work if different from above.

Please be realistic with pricing, nobody will develop a website for $50 and 10% of revenue.
 

montecristo

Top Contributor
Set-up would depend on whether the proposed earnings became reality.

A site that made $1000 PA I would pay $1000 + 50/50 revenue split for each year the site made $1000 or more.

I wouldn't fork out $1000 for a site in the "hope" of it making 1k so would want some security there. A cheap site that showed potential would be more appropriate to then re-evaluate and invest more into would be my preferred option.

$2000, I'd pay $2000 + 50/50 and so on ....
 

Jonathan

Top Contributor
I don't like the idea of paying a set up fee at all, as I don't like the idea of paying someone for the privilege of using my property. I'd be willing to do up to 50% profit sharing if revenue targets were met.
 

jam

Top Contributor
Setup fee would be to make sure the person owning the domain is serious about the development, I wouldn't want to do a weeks work and have the domain owner decided to not continue with the development.

Considering it can been seen the other way that they are paying for the privilege of using my services.

All sites should make $1000 a year minimum income.

Would a guarantee such as if you don't make the setup fee back in the first year we will make up the difference? Not that this should ever happen.
 

montecristo

Top Contributor
All sites should make $1000 a year minimum income.

Really? , how about this then.

No setup fee.
You get 100% revenue for two years and split 50/50 each year after for 10 years.
You pay rego fee at year 2.

A legally binding contract should take care of the willingness of both parties to go through with it.

?
 

jam

Top Contributor
Really? , how about this then.

No setup fee.
You get 100% revenue for two years and split 50/50 each year after for 10 years.
You pay rego fee at year 2.

A legally binding contract should take care of the willingness of both parties to go through with it.

?

A contract will be made with every site and the time frame will be for 12 months at which the domain owner can decide on what they would like to do, in most cases I would hope they would continue on or we sell the site and domain together.

I don't want to do anything longer than 2 years, the web is changing to fast to do anything longer than that.

I wouldn't do this for just any random domain, I would be screening clients and only accepting domains that I know I can make more than $1000 a year from. Some members on this forum have domains I would like to develop.

I've seen too many domains sell for $1000 - $2000 when I know they could make $5000+ a year.
 

Jonathan

Top Contributor
Setup fee would be to make sure the person owning the domain is serious about the development, I wouldn't want to do a weeks work and have the domain owner decided to not continue with the development.

That's what contracts are for.

Without mentioning any names, I know people who are operating on a model whereby if they meet certain revenue targets, not only are they entitled to 50% of the revenue, but the domain name itself gets transferred into a new company in which they are part owner. If I was going to go down the road you're thinking of going down, I would really be wanting equity in the domain name if I'd met all my performance targets.
 
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johno69

Top Contributor
I don't want to do anything longer than 2 years, the web is changing to fast to do anything longer than that.

This to me says you are looking for a quick buck, and have no confidence in your work in the long term. Goes hand in hand with the request for setup fees really.

As mentioned, if you are guaranteeing a min level of income in the 1st year, just remove the setup fee and take 100% in 1st year.

Some small time domainers spend most funds on the domains in the hope for the development funds coming along later. I'm sure these domain owners would jump at the chance of 50% of something good rather than 100% of a dream.

On the other hand of course some would prefer to pay for development and keep 100% profits.

I'm just not so sure there's much in between. Paying for development and revenue sharing the profits doesn't sound all that appealing.
 

montecristo

Top Contributor
.

I wouldn't do this for just any random domain, I would be screening clients and only accepting domains that I know I can make more than $1000 a year from.


Yeah, that makes more sense than "All sites should make $1000 a year" as stated above.
 

jam

Top Contributor
This to me says you are looking for a quick buck, and have no confidence in your work in the long term. Goes hand in hand with the request for setup fees really.

On the other hand of course some would prefer to pay for development and keep 100% profits.

I'm just not so sure there's much in between. Paying for development and revenue sharing the profits doesn't sound all that appealing.

Paul, A setup fee of $200 - 500 is not much when development fees would be over $5000k plus ongoing updates of a few hours a month.

2 years is not looking for a quick buck, and I have more than enough confidence in my own work.

By the looks of it what people are willing to pay is all over the place.
 

Shaun

Top Contributor
Jam,

I think Jonathan eluded to it earlier, why not offer something like we do but on a smaller scale with our domain partnerships?
 

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