My comment can be found on Elliot’s – DomainInvesting.com blog here
quote : ”
Hi Rob – My name is Alex Verdea. You probably haven’t heard of me. I take full responsibility for that.
Question for you man: Would you rather have 2 million friends month after month forever, or 2 million USD CASH?
Man I agree with you completely! You are right. The conversion rate the previous owner had operating Translate.com was an atrocious conversion rate. That is EXACTLY WHY I think this deal was amazing for the new buyer.
How do I make sense of this? Well my local bank is offering a “whopping” 1.10% APY interest rate on my savings, so if I had 853k liquid and in the bank I would get $9383USD after 12 months!
Looking at the Flippa listing the worst month in revenue for Translate.com was February 2018 with $13,728USD in revenue. I am going to be a pessimist and make a projection that every month for the next 12 months is going to be the lower 13.7KUSD/month revenue so that’s roughly $164,000USD/12mo.
I come to find out that 164k revenue is about 19% ROI on my 853,000USD investment.
Now Rob, what other investments can I put my money in TODAY that will pay me back at least 19% ROI year after year and building equity??? Please tell me sir.
What’s the POTENTIAL of Translate.com if the new buyer fixes the conversion rate??? YEAH…I AM THINKING BIG, and I am sure the new owner did too.
All the value is in the domain name itself. Over 37million exact match searches and over $3.00CPC. The business model and the crazy low conversion rate are to blame on the previous owner, and EVEN WITH that business model you are set with at least 19% ROI! Haha
So for all of you that think 853k is a LOT OF MONEY for this business and domain name, think again!
“Money follows attention folks” I would much rather have 2 million friends then 2 million USD! You must get attention, and money will follow…
Look at the Kardashian’s of the world….how did they get their attention?? haha and now selling more cosmetics online then corporations that have had 100years head start before them!!!!! Those women are genius!
That’s my 2 cents for today