Sunday , February 28 2021

Seller of drops asking price

Last month I wrote about the website going up for sale on Flippa. The starting price was $975,000 and the other part of the equation was that the ownership of did not come in the deal.

The entrepreneur running the business (by himself) has a perpetual lease for through Kevin Ham’s

The asking price has now been lowered to $750,000 or make an offer. If you are signed in the listing does make it clear the domain is leased.

It’s interesting lists under it’s success stories section.

The lease is currently $499 a month, in 2021 it will go to $1k a month, in 2022 $2,500 a month, in 2023 $4,000 a month then it will increase 4% annually.

Brad Mugford said,

With those terms you are acquiring a liability more than an asset.

A lease deal might make sense, but it doesn’t make sense to pay a massive premium for a lease deal on a term that is going to wane in demand as the lease gets more expensive.

The seller believes the business would be nowhere near as good without the domain name.

When asked on Flippa,

Do you think this business could be just as successful without the high authority domain name?

Absolutely not.

It will be interesting to see where this business eventually sells.

The post Seller of drops asking price appeared first on TLD Investors.

About Raymond Hackney

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