Domain vs Kiosks. The Hole in the Donut Theory. A River of New Found Cash!!!!

Morning Folks!!

We have all seen those small Kiosks scattered throughout malls in previous un-rentable, un-profitable  and just public spaces. (This is what I would refer to as "Selling the HOLE in the donut". You would be hard pressed to find one under $1000 a month and in most cases a decent mall can be thousands more. Your radius for sales is not worldwide it's a FEW FEET! Malls took worthless space (the hole) and made it profitable. (the donut)

If you are in business and you don't understand "The hole in the donut theory" you are leaving BIG MONEY on the table.

How much you think Simon Malls takes in just on Kiosks? They took something that was FREE and made it income producing. Hole in the donut!

ANY domain has more  value than that IF there is a demand for that domain. Just because the market has not figured that out YET does not have to make ME or YOU change how we view it and price accordingly.

Our biggest hurdle has always been domainers selling their assets for chump change because of financial weakness and lack of sales and negotiating skills.

In 1995, I decided that ANY domain that was wanted by a 3rd party had a MINIMUM value of $15,000 to a business. That's before domains had virtually NO re-sale value. But I see the world thru the eyes of a different lens. In this case, thru the lens of a kiosk or a lawsuit. Then it went to $50k minimum in 1999, $100k minimum inn 2001 and now I have a $250k minimum unless I get a piece of the action. Each level criticized by fools.

So, the way I view things in 1995, EVERY domain that had value, had a value of at least $15,000. I only sold 1 domain for under that. But that was for a loss and a tax deduction during a year that I needed a tax reduction.

If other folks saw what I saw they would have ever sold their NNN.com domains for $5000. Or ANY of their other names for that level.

How much does a stinking outdoor business sign cost??? Could be TENS of thousands of $$$ and can go MUCH MUCH higher! For a damn sign!

What other real world comparisons are domainers not making?

I have talked about this for DECADES! The value of a domain has NOTHING to do with what you paid for the domain. NOTHING! Unless you SUCK or are just plain FOOLISH as a domain investor. Know-nothings look at their cost! But these geniuses don't have a clue about VALUE!

To a successful online entity, the DOMAIN is or will be the single biggest bargain of their entire lifetimes! And they will ALL wish they bought many more!

Rick Schwartz

 



6 thoughts on “Domain vs Kiosks. The Hole in the Donut Theory. A River of New Found Cash!!!!

  1. John

    Another great, useful and valuable post, filed under “Domains – Value of.” Love the metaphor, embarrassed to admit was not familiar with it. I was just posting to Elliot S. at DI on the 12th “The real problem is when the person listing it cheap doesn’t have a clue how much it’s really worth and that it’s worth much more.” (I.e., when they have the other valuable version of what you have.)

    Reply
  2. BUCK$$

    Great post!

    I have B-MONEY.COM (means Bitcoin-Money, Blockchain-Money.. whatever) where all those “blockchain investors”?!

    E-MONEY.COM was sold for 23,000 USD in 2011.
    “E-” is an outdated prefix
    “B-” trending

    Thanks :-)

    Reply
  3. Jay

    Right on point. I don’t sell anything for less than $50,000 I am not and never will be desperate or hurting for money. So F U pay me hahahaha

    Reply

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