Rick Latona’s Great Rates on Newsletter Domains
I just saw Rick’s post about financing domain names purchased through his newsletter and think its a pretty good deal. If you are able to develop one of the domain names he is offering, you can probably be cash flow positive on it in short order.
To put this deal into perspective, I want to create an example. In the past, I’ve seen Rick offer names for 10x annual revenue. Say you buy a $10,000 name from his newsletter. Assuming a 10 year multiple, the name is making about $2.75/day. If you put $1,000 down, the monthly cost (at 1.25% monthly) is around $112.50. On PPC revenue alone, the domain would make around $85/month.
If you develop the domain name minimally, add a few extra pages of additional content, find paying advertisers, find a good affiliate relationship, or do more link building to grow traffic, I would think you will see the revenue grow fairly quickly. It wouldn’t take a whole lot of work to be cash flow positive on a deal like this.
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