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  #1 (permalink)  
Old 9th May 2008, 14:03:08
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Default Profit margin for a Domain Developed for Advertisement?

Hello.

I was contacted by a web developer wanting to develope advertisement content for a city domain that I own (Turkish, not IDN), in return they will pay me monthly revenue percentage and I keep the name registry.

What are the usual percentage values offerred in such schemes?

Thank you in advance.
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Old 9th May 2008, 14:24:24
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From the way you worded your post, it seems that they're calling the shots and not you, the owner of the domain.

First I would switch this order

Second, are you prepared to make nothing if they make nothing?

Third: see number one and since you're now calling the shots you name your price: Monthly fee on a 6 month or 1-year lease with option to renegotiate at end of lease.

Also to consider: Are they going to be actively promoting the site (domain) or are they relying on current traffic? Price can go up or down depending on this.
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Old 9th May 2008, 14:26:00
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scratch the above; I just saw "web developer".
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Old 9th May 2008, 14:28:19
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My personal opinion:

1. take perhaps 10% revenue

2. lease at a fixed yearly price with option to terminate lease due to non-performance, e.g. incoming revenue cut is less than X per year.


For example, you say that they can lease the domain for $200 a year and that in addition to that, your 10% revenue cut must exceed $500 per year. Just an example... Others may have different opinions.

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Old 9th May 2008, 17:52:28
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This is actually a nice alternative to parking, someone puts the namespace to good use, you get a very small cut and if the site + the name is sold you get 100% of the domain value.
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