There’s an appraisal thread at NamePros discussing the value of LosingWeight.com. In case you don’t know appraisal threads can only be started by domain registrants and in cases of high value names moderators at NP do due diligence.
The member posting the appraisal is a new member and goes by jake238 (I’ll just call him Jake in this post). Jake claims 2,400 ‘daily visitors’ and mentions a site was launched on it in October of last year. As expected, appraisals are all over the place but there seems to be a consensus that the name alone should bring at least low to mid five figures, even to a reseller.
Registered in 1997
Alexa ranking 335,825 and 168,385 in the U.S.
186 links coming in (according to Alexa)
Search Volume & Estimated CPC (below)
Broad: 1,500,000 global 673,000 local $2.88
Exact: 49,500 global 27,100 local $4.69
Well, what do you think it’s worth? To an end user?
Here’s the catch, as Jake starts interacting with members and responding to appraisals, he starts talking and divulges that his company has spent $30k on the “site creation” including “outsourcing programmers and writers.” Wow, looking at the site which lacks even a decent logo, I am a bit blown away by the amount of money spent to ‘develop’ this LosingWeight.com website.
As mentioned by one of the members offering an appraisal, the forum on LosingWeight.com is all but dead. On a weight loss or health website in general an active forum is important. Jake admitted the forum was indeed dead which really bites because he also mentioned a lot of money was spent integrating it into the website.
Jake then proceeds to say that his company is willing to accept $140k for the name and that “the sole reason we’re selling the site is because we cannot continue the funding for content.” To me and any potential buyer this sounds more like “I need to sell so I can recoup money I invested in this project and let someone else deal with it.” One could also deduce that if it’s for sale so quickly after development, there must be a big issue with the amount of money spent on development compared to the amount of revenue earned since.
Jake, you have shot yourself in the foot! (IMHO) You have a great .com, you made a mistake and spent way too much developing it and I can probably guess based on your asking price what you paid for it, so now you have almost zero chance to make money with it. A savvy (or unmotivated) investor owning this name could probably have gotten six figures or maybe more without ever doing anything with the name except for renewing it for 10 years out.
One of the biggest problems I see here is that Jake and company bought this premium domain name because it is a popular topic and figured that by throwing some money at development on it they could recoup the investment plus profit in a short period of time. I’m afraid Jake and his company are not passionate about or have very little knowledge of the weight loss business as is evident by the site and it’s success (or lack thereof). The site provides nothing more than any other website in that niche provides (weight loss calculators and a bunch of articles). Even to maintain traffic more money must be spent every month!
Now, I am definitely not saying that owning LosingWeight.com or other weigh loss domain names as an investment is a bad idea, whether you give a damn about losing weight or not, LosingWeight.com is a great name. Also, if you are in the weight loss business, have serious ties to that industry or have plans for a startup in that space – this name would suit you perfectly. The biggest mistake Jake has already made is developing and clinging to this website, claiming it is making the domain name more valuable. Here’s the appraisal thread.
I guess the big lesson here is developing a premium domain name may make it less valuable than doing nothing with it at all. I definitely think this is the case with LosingWeight.com.
This is a mistake that I think a lot of new domain investors are making. I would have done the same thing a few years back if I had more money to invest with, probably more than once. Unless you have a long term plan, development of a premium domain name is not just bang bang and cash out big. It really helps to have some knowledge and connections into any industry you are trying to break into, especially in markets with very high competition. You can’t just rely on the power of the name and some haphazard development to make you money, you’re better off spending a fraction of that money hiring someone to broker the domain for you.