What is the Value of a New Client? How to Value ANY Domain Name!

Morning Folks!!


If you want to know, understand and value domains then you MUST ask a very simple question. One of many but this one is so easy that somebody even in Corporate America may even get it.


So let's use DirecTV as an example. They pay anyone a $100 bounty for a new client. So let's peel back that onion and understand the VALUE of a new client over the lifetime of that client.


So I have DirecTV and for $225/month I get all types of goodies. Have had it for 15 years and likely have it another 15 years. $2700/year x 15 is already $40,500 and another $40,500 to go. So I am an $81,000 client. Plus any other shows or movies I might order. Price increases etc. Ad dollars they will take in because more folks are watching. There are dozens of hidden advantages as well. Including things they can market to me unrelated to them. But for Corporate America we will keep this SIMPLE.


So we can establish that DirecTV can make up to as much as $81,000++++ from one client in sales over their lifetime. It's like your phone bill and your car payment and your mortgage. You pay those things every month and likely for 30-50 years or more.


So one client at DirecTV has a value $81,000 that I can prove just on me. How much is that customer worth getting?? See Corporate America wants a million at a time. But good luck. How about 10 a day? What if I have a site that can send you 10 new clients a day because the domain gets type ins? What if I can do that every single day x 365 x 30 years.


In case you can't do the math. Just 10 customers a day...........$29.5 MILLLION in generated business in for those LIFETIME customers over the course of 30 years.


Or just the simple way. 10 deals a day x $2700 annual expenditure = $27,000/day x 365 = $985,500/Year. Then multiply that by 30 and you get your $29.5 Million.


One example for one product at one price point. So Mr. End user, do the math! You understand the value of one new customer where Corp America might not.


What's the value of a domain with type ins that can give you 10 new clients each and every day? 100 new clients each and every day? ONE new client each and every day? Each business and each product can do that simple equation and figure it out. That becomes the FACE VALUE of a domain name. There are so many other bonuses you get. But hard to argue with math. And for those that say it is only 1 customer, or 5 or 10 and that is nothing significant, you are a fool.


Have a GREAT day!

Rick Schwartz

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7 thoughts on “What is the Value of a New Client? How to Value ANY Domain Name!

  1. rick

    Just an observation.
    $27,000 x 365 = $9,855,000 x 30 = $295,650,000
    Even more amazing.

    Reply
  2. Tony

    I love the idea of this post.
    The math is actually even more astronomical.
    One customer is worth $81,000/lifetime.
    10 new customers/day = 3,650 customers/yr.
    Over 30 yrs = 109,500 customers
    Liftime revenue over 30 years = 109,000 x $81,000 = $8.829 billion

    Reply
  3. henry

    You obviously don’t know how to do math because a customer on year one of a 30 year life span is worth $81,000 but you are counting 109,500 over the total 30 years but someone who joined in year 10 or 20 or 25 didn’t accumulate $81,000 over their span because they didn’t start at year 1. Duh!!!

    Reply
  4. Tony

    The math is correct. I didn’t say I was calculating the revenue collected over 30 years. I was calculating the total worth of the lifetime revenue of all customers collected over 30 years.

    Reply
  5. Krishna

    One thing is sure – premium .coms are the most under-valued assets in the world (as of now).
    There will be huge spike in valuations when businesses understand the importance of domains unless some new technology makes domain names redundant.

    Reply
  6. Samit

    Why just ‘premium .coms’? Any domain / extension that can get you the numbers is just as valuable in terms of revenue generation.
    In fact, ccTLDs have been making a HUGE dent in aftermarket sales, gets bigger every year.
    When you buy high, you need to sell very high to even recover your investment and this game is all about the ROI.

    Reply

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