Can you (or someone else) help me understand the rationale that is used for paying $1M for such a domain? I imagine PepsiCo must have an internal rate of return ´hurdle´ for all of its investments and I´m going to guess it is at the very least 5% (probably more), so that means you have to believe that by having the Quaker.com domain you will earn $50K more in profit every year from now till eternity. And if I guess that your margins are 10%, that would require that you sell half a million bucks more per year.
What am I missing here? Do you really expect to sell $500K more per year because you have Quaker.com vs. QuakerOats.com?!?! I am a Quaker costumer, but I confess that I´ve never been to either site, nor do I know of anyone who has.
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Can you (or someone else) help me understand the rationale that is used for paying $1M for such a domain? I imagine PepsiCo must have an internal rate of return ´hurdle´ for all of its investments and I´m going to guess it is at the very least 5% (probably more), so that means you have to believe that by having the Quaker.com domain you will earn $50K more in profit every year from now till eternity. And if I guess that your margins are 10%, that would require that you sell half a million bucks more per year. What am I missing here? Do you really expect to sell $500K more per year because you have Quaker.com vs. QuakerOats.com?!?! I am a Quaker costumer, but I confess that I´ve never been to either site, nor do I know of anyone who has.
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