Comments on: Citigroup Does Something Seemly Small, That Could One-Day Save It.

By: Louis

Louis — Mon, 12 Nov 2007 23:57:34 +0000

The name nets $3m per month. Bottom line.

I know this for a fact…..

By: marketing relationship

marketing relationship — Sun, 11 Nov 2007 18:12:27 +0000

Valuation

2 ways to value this name

Most lenders will spend 1k to acquire a customer in total marketing cost. Assume 150k loan with 2% back end revenue. If the site produces 2400 fundable loans this equates to a marketing budget or savings of 2.4 million per year

Valuating on revenue of 3k times the 2400 closed loans equates to 7.2 million per year, times a multiple of 5-7 years would put the value between 35-50 million for a true end user mortgage company so this was truly a steal buy a few years back…when you look at numbers like this it makes you wonder how the idiots who run wells fargo can justify not monetizing the homeloans.com name…if I were an shareholder I would probably contact their bod

By: marketing relationship

marketing relationship — Sun, 11 Nov 2007 17:59:41 +0000

Gabe

I spent some time at the largest online lender in the country, they do 8-10k loans per month in good times with a 100 million per year marketing budget. Its a great name but net loans via strictly typing in the url is probably under 200 per month. Citi also has done a poor job in developing this site to convert well…but time will tell, I would love to own it, abn paid 1-2 million to acquire it a few years back…great investment…