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New TRAFFIC "Appraiser" Contest for Rio.com

Rick is running a new contest for chance to win a ticket to TRAFFIC South Beach in 2010 by guessing the sales price of Rio.com at the upcoming Rick Latona auction at TRAFFIC New York. I put a bid in for his last contest "Appraiser of the Year" and was only edged out by the fact that WaterPurifiers.com didn't close during the Live Auction (but sold at the event). So I think I have a pretty good nose for this stuff (though everyone has their opinion).

Anyway, my vote is in - $2.4 million dollars, approx. 8 times the reserve price. And the thing is, that'll be a very good deal for everyone if it sells for that price. Let's take a look at the numbers, shall we?

We've seen some low 7 figure sales this year including recent entries Ticket.com, as well as deals for Auction.com, Candy.com and Fly.com. But I think Rio.com will sell for more than all of those for a number of reasons.

1. It's an auction, and prices tend to build higher at auction, especially with the low reserve of just $300,000-$400,000 for Rio. Rick Latona's team has done an excellent job not only landing the name, but getting a really doorbuster type reserve. We saw the effect that had on the final sales price of Ad.com earlier this year, though that transaction has gotten held up for other reasons.

2. Rio is hot. Winning the 2016 Olympics is really just the feather in the cap. A $10 billion dollar feather mind you, but Brazil's make headlines constantly with their strong economy, abundant resources, travel, nightlife, sporting events like the 2014 World Cup and Rio is at the center of it all. Oh and don't forget Carnival!

3. It's short. Again, like ad.com, the value of a short name is significantly higher than the alternatives. Yes, the city is Rio de Janeiro, but A. Who wants to type that? and B. Who wants to brand on that?

4. Geo domains are big business, especially for tourist destinations. Forget about the death of the newspaper. Forget about small, local business advertising. Rio.com has the potential to generate $2.4 million in profit a year in just direct ad sales and travel reservations. Think I'm lying? The owner of MyrtleBeach.com did an interview at DnJournal.com stating that it Nets a million a year and that they wouldn't sell for 10 times that. That's Myrtle Beach! Rio, over the next 6-7 years leading up to the Olympics, could generate $15 million in profit very, very easily. That's why I say it'll be a great deal for the buyer at just $2.4 million.

5. The competition will be fierce. Seriously fierce. There are some huge players in this space with lots and lots of cash. $2.4 million is very high and assumes that you'll have multiple bidders going into 7 figures. I think we'll see it move past $2 million with just two bidders left standing, though and one won't be able to pull the trigger at $2.5. There's a logic and a method to my madness.

Let the games begin. Be sure to tell me that I'm crazy - http://Twitter.com/UtterDomain

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