Domain Value (Question)

butters · 10-30-2009, 02:03 PM

How does one know if a domain is worth any value before buying it? How do you determine if a domain is any good, is it the PR and the backlinks or is it just in general the name of the domain?

If anyone has some information of this it would be great

a small ebook or a link, I am generally interested in this but got no idea where to begin.

Lou Diamond · 10-30-2009, 04:22 PM

Hello,
please keep in mind that the domain name that you want to buy you may put to better use than the last person.
I have bought many domains which were not properly monetized and fixed them up and
flipped them for ten times the price I paid.
This is just like fixer uppers for houses and empty real estate lots.

butters · 10-30-2009, 04:54 PM

What i meant is, which I am assuming there are companies which do this. They will buy a domain, once bought, they will auction it off again. How do companies like that, determine the value of that domain?

Gene Pimentel · 10-30-2009, 05:07 PM

Quote:

Originally Posted by butters

What i meant is, which I am assuming there are companies which do this. They will buy a domain, once bought, they will auction it off again. How do companies like that, determine the value of that domain?

Mostly through experience, and comparing the domain with past sales that have taken place. There is no 'one' formula or method to use in determining the value of a domain name. A domain name may may be worth $10 to 99% of the people, but can worth $1,000 to one or two prospective buyers (even tens of thousands). Your job is to research the market and look for prospective buyers for that domain.

I have hand-registered domains for $7.50 and flipped them for $10,000 and $20,000. And I've hand-registered hundreds of domains that never sold at all.

The more targeted the keywords in your domain, the more likely it is that somebody out there would LOVE to own it.

The best way to determine the market value for a particular domain name is to compare it, feature by feature, with domain names that have already sold. One of my favorite places to do this is DN Sale Price- Domain Name Sales Price and History

You can also look a the aftermarket sites like Afternic.com, Sedo.com and check their completed sales. Also have a look at NamePros.com and dnjournal.com

fghaegele · 10-30-2009, 05:18 PM

Buyers seek undervalued domains/sites.

What do I mean by undervalued? Undervalued sites are site with a lot of traffic with unusually low revenue. For example, on flippa.com you will find a lot of sites that see thousands of unique visitors a month, but only report about 10-20 bucks a month in revenue.

The value is dependant on revenue. So the buyer will buy these high traffic sites, change or add content, and try a different monetizing strategy than the previous owner did.

As a sidenote, there is a huge gap between being a web designer/developer and a webmaster, and few people in this business make a distinction between the two. Webmasters monetize sites, and turning traffic into money is an art in itself. Not knowing that can be a costly oversight.

So these buyers snap up a high traffic domain for a reasonable price, have the webdevelopers add/optimize content, and the webmaster comes in and removes all those ****ty adsense towers that nobody clicks on anymore. Next, after a few months or so of waiting, more revenue comes in. The site owner determines the value of the site based on the increased revenue, therefore, is able to sell the site for more money.

(Notice how i didn't necessariiy say 'sell for a profit')

10-30-2009, 02:03 PM	#1
butters Lee Bartlett War Room Member Join Date: Sep 2009 Location: Harlow, Essex, Uk Posts: 1,428 Thanks: 80 Thanked 173 Times in 133 Posts	Domain Value (Question) How does one know if a domain is worth any value before buying it? How do you determine if a domain is any good, is it the PR and the backlinks or is it just in general the name of the domain? If anyone has some information of this it would be great a small ebook or a link, I am generally interested in this but got no idea where to begin.

10-30-2009, 04:22 PM	#2
Lou Diamond Senior Warrior Member War Room Member Join Date: Aug 2002 Location: Long Island N.Y. Posts: 1,153 Thanks: 28 Thanked 192 Times in 101 Posts	Re: Domain Value (Question) Hello, please keep in mind that the domain name that you want to buy you may put to better use than the last person. I have bought many domains which were not properly monetized and fixed them up and flipped them for ten times the price I paid. This is just like fixer uppers for houses and empty real estate lots.
	Something new soon.

10-30-2009, 04:54 PM	#3
butters Lee Bartlett War Room Member Join Date: Sep 2009 Location: Harlow, Essex, Uk Posts: 1,428 Thanks: 80 Thanked 173 Times in 133 Posts	Re: Domain Value (Question) What i meant is, which I am assuming there are companies which do this. They will buy a domain, once bought, they will auction it off again. How do companies like that, determine the value of that domain?

10-30-2009, 05:18 PM	#5
fghaegele Warrior Member Join Date: Oct 2009 Location: Cincinnati Posts: 8 Thanks: 0 Thanked 0 Times in 0 Posts Social Networking	Re: Domain Value (Question) Buyers seek undervalued domains/sites. What do I mean by undervalued? Undervalued sites are site with a lot of traffic with unusually low revenue. For example, on flippa.com you will find a lot of sites that see thousands of unique visitors a month, but only report about 10-20 bucks a month in revenue. The value is dependant on revenue. So the buyer will buy these high traffic sites, change or add content, and try a different monetizing strategy than the previous owner did. As a sidenote, there is a huge gap between being a web designer/developer and a webmaster, and few people in this business make a distinction between the two. Webmasters monetize sites, and turning traffic into money is an art in itself. Not knowing that can be a costly oversight. So these buyers snap up a high traffic domain for a reasonable price, have the webdevelopers add/optimize content, and the webmaster comes in and removes all those ****ty adsense towers that nobody clicks on anymore. Next, after a few months or so of waiting, more revenue comes in. The site owner determines the value of the site based on the increased revenue, therefore, is able to sell the site for more money. (Notice how i didn't necessariiy say 'sell for a profit')
	Spam me! http://romne.com