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Interesting read.
Iīm not a webcam guru but I thought about the value of the domain.
How do you calculate the value of a domain? OK, if there is a program behind it, you can see what the entire company is worth, but that wouldnīt be the domain itself.
In this case the price was paid for the domain only, if Iīm right. So it was a good investment if the domain bears interest for the investment and will not sustain depreciation?
I wonder if the domain will do so without any development and - if it needs development - if you could have done the same with another cheaper domain. If development is needed, the expenses add up to the purchasing price which will reduce the profit. If you can achieve the same result with another cheaper domain, it was overpriced.
So basically I think the domain was worth the price if it generates enough traffic for a good amount of signups without development and will keep its value in the future.
The problem is I canīt see that the domain will generate the needed signups itself. And building a new webcam company doesnīt need a premium domain name but a lot of capital and knowledge. This is proven by AWE.
Finally there is the risk that the domain canīt be sold at cost in the future.
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