reliant on the owner, no capital value
yeh, the goodwill goes when the owner changes although i did have 1 success with a client when he took over a retiring optoms business, basically he purchased the clients/leads and the danger here is the % lost once "kevin" is no longer the optom and you come in and "tim" is your new guy !
we retained @ 85% of clients and i think it was from one simple thing, we changed the business name from kevin optometrist to kevin/tim optometrist and kept it that way for 4 years ( optom patients are like domain renewals they have a 2 year cycle ) after 4 years we change to just "tim optometrist" and saw another slight drop but that could have been from anything eg: spec*****s
i'm currently working with him on an exit strategy for himself and have been for the last 5 years we have been rebranding him from his name to his EMD town-optom , so here is a good excuse why an emd still has value, likewise i am working with another client to do the same thing so i'll be very interested to see what happens.
another client of mine "got out" a few years back ( i was not involved but the new owner is now my client ) but for a 3rd of what he wanted, the problem there was TIME, and i saw the same thing on shark tank last night where someone had a patent but it only had 3 years left to run, a very similar analogy i think.
very few domains run solely online, most have some form of bricks and mortar even if its the guys ute towing a lawn mower with "mow.com.au" on the side, its still bricks imo, so we can acknowledge that emd's don't have the same value they use to, also brandables are great so in the end an emd thats brandable and has some money behind it to get BRANDED through seo of traditional media has some value.
so for me the end result is you have to look at this guy and say ......hmmmmmm what am i going to do with my folio when i get to his stage of life? i think i know the answer..........don't
tim
