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Help With Domain Name Pricing

by DanielMeyers75
10 replies
Good morning to all. Would like some help determining the actual value of a domain. Here are the specifics:

- Domain is a one word .com domain
- No existing website nor has it ever had a website
- No SEO, No traffic
- Low competition for keywords (MS shows 500k and less)
- Registered for 4 years
- The name of the website receives 40,500 searches a month (Google Keyword)
- Other long tail key words that directly relate the domain name equal another 30,000 searches per month.
- Niche is newer but growing fast.
- .net, .org, .info are not available for registering
- Adword monitizing not really possible (most key words show 0.50). Monitization would have to be from ebooks written on the subject (which really don't exist yet)

I had 3 indepedent appraisals. The domain was valued between 4000 and 8000 with a mean valuation of 7000. I offered 7500 for the domain. The company listed at 15k but will accept 12k.

Solely based on my disclosures above, does the domain warrant the price of 12k.

Thanks for any help and guidance you can provide.

Daniel
#domain #pricing
  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by DanielMeyers75 View Post

    Would like some help determining the actual value of a domain.
    Domain-names don't have "actual value", Daniel.

    They only ever have "relative value".

    It's common, and normal, for a domain-name to be worth five times as much to one person (trying to sell it) as to another (trying to sell the same domain-name). The reason for this is very simple, and apparent: what a domain-name is worth to you depends on what someone will pay you for it, and that depends almost entirely on your own skills at identifying, approaching and negotiating with people to whom the domain-name potentially has artificial value above and beyond its reg-fee, becasue of the nature of their own businesses.

    Originally Posted by DanielMeyers75 View Post

    I had 3 indepedent appraisals. The domain was valued between 4000 and 8000 ...
    ...
    ... solely based on my disclosures above, does the domain warrant the price of 12k.
    Not for me. Nowhere near. (To the extent that anyone can ever "value" a domain-name they haven't seen!).

    Would you be buying it primarily to use yourself, or for resale?

    .
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  • Profile picture of the author salegurus
    No offence to OP but for the LOVE OF G..
    These how much is my domain worth threads are getting out of hand........

    You can find the exact same answer as provided above by Alexa in dozens upon
    dozens of recent threads...

    Daniel: Unless you are sitting on a CARS.com or similar your domain is nowhere near worth $12K going by what youve provided, sorry but thats the facts...
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  • Profile picture of the author Jeff Lenney
    And the domain name is....?
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    Too lazy to write something clever here, so check out my marketing blog and learn from a REAL Super Affiliate at JeffLenney.com

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    • Profile picture of the author AnniePot
      You say you've had three independent appraisals - from whom?

      There are many, many scam companies out there who grossly inflate the perceived value of domain names. It's been going on for years.

      If it's a domain name you actually own yourself, list it on Sedo and see what people offer you for it, but to be honest, unless you've been extremely intuitive and purchased a really clever, focused domain name no-one has previously thought of, it's highly unlikely that it's worth much more than what you paid when you registered it.
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  • Profile picture of the author DanielMeyers75
    Alexa

    Thanks for the useful comments. I am want to purchase the domain for my personal use as it does directly relate to my hobbies and I feel like I could make some good money with it. As for how long it would take to recover 12k plus marketing capital, could be 3-5 years if I am lucky.

    Salegurus, no offense taken. I have been all over the net looking at different ways to determine the value of a website. Many take the traditional route of 2-5 times the annual income of the website. Others take the approach of some "proprietary" algorithm based on SEO, traffic to site, ect... I see top level domains kinda like diamonds, they aren't really that rare, yet they cost a lot of money for a good one.

    Jeff, I will respectfully decline to provide the name. I don't need any other competition for the purchase of this domain. I am already in a 5 way "bidding war". I effectively have a first right of refusal on the domain for which has presented to me at 12k.

    Regards,

    Daniel
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  • Profile picture of the author DanielMeyers75
    Annie, I don't own the domain, I am trying to purchase it. One of my appaisals was from Sedo.com.

    Thanks,

    Daniel
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  • Profile picture of the author Tom Addams
    Without knowing the domain, no one can be of any help. With that, it is certainly possible to give you a very strong idea of market value. The metrics you offer are handy, but unusable without knowing the actual domain. Before you shell out that kind of money, be sure to check out the closing price of similar domain sales. This will at least let you know if your offer is in the right ballpark.

    Tom
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  • Profile picture of the author DanielMeyers75
    Tom,

    Thanks for your suggestions. I look at other similar sales, but they aren't in the same niche. I made offers on other top level domains, and all the companies, mainly domain squaters, are all asking 10k+, though no sales at that price.

    Regards,

    Daniel
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  • Profile picture of the author salegurus
    Thought you were trying to sell a domain
    Sorry did not take my blue pill this morning...
    Anyway like GRM said please don't invest that kind of money without doing proper background investigation...
    Good Luck
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    Think of how stupid the average person is, and realize half of them are stupider than that.

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  • Profile picture of the author Steve B
    Originally Posted by DanielMeyers75 View Post

    . . . determining the actual value of a domain
    Daniel,

    As Lexy has stated, there is no "actual value" for any domain. Typically, a domain is worth what you can get for it. Appraisals are simply semi-educated guesses.

    If the domain was getting hoards of traffic or if it had a performing money-making site attached, it would be worth something more than the cost of registration (but that would still be only a guess.)

    The "specifics" that you mentioned are not really a valid basis for valuation.

    Taking 3-5 years to "recover" the cost of the domain is waaaaaay too long for me.

    I would spend $1.99 and create your own perfectly brandable domain.

    Steve
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