Need Some Advice from Domain Flippers

8 replies
Hi folks,

Had a lot of trouble getting on the forum the last couple of days, but pleased it's all back to normal now and I can read and post a few threads.

I have recently been doing a bunch of keyword research with my colleague and we found a number of keywords, where the .com domains were not registered.

For example:

We would find "keyword one" and then discover; "keywordone.com" was available.

One of the keywords we found had the .com registered, but it was on sale for $3,750. There are 3,800 exact searches for this term on average per month, the domain just seems to have a bunch of ads on it (think it is just parked).

This seems really expensive and my question is, how do you value a domain?

You see, we found a yet unregistered keyword which is a ".com" and gets 2,400 exact searches on average per month. We don't really want to use the domain for anything, but if we could sell it on for a few hundred bucks, that would be just swell.

I have a suspicion however, that if we registered it, we shouldn't look to sell it for a year or two, as the domain becomes more valuable with age? Is this right?

I guess what I am asking is, what determines the value of a domain and what is the best way to sell it? I am totally new to the idea of domain flipping, so would appreciate any help or advice from some one who has experience in doing this kind of thing, even if it's just a "nudge" towards where I could find out some more solid information.

Thanks in advance for any help anyone can offer.
#advice #domain #flippers
  • Profile picture of the author badboy_Nick
    Originally Posted by EndGame View Post

    This seems really expensive and my question is, how do you value a domain?
    I value a domain based on the following:

    1. Is it a short or very brandable name, like shoes.com or something. That alone will justify a high price tag

    2. Monthly searches for exact match and industry average CPC on Adwords for that exact same keyword

    3. Monthly generated revenue of that said domain/website

    Based on these 3 factors I make judgement and I can easily justify a price tag and whether it's worth buying the domain or not. Obviously, you can only sell what someone is willing to pay for it, so market forces will still play a big part in this.

    Any questions just let me know

    Nick
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    • Profile picture of the author EndGame
      Hi Nick,

      Thanks for that, but how does the market value domains etc?

      You mention that is how you value you domains, but how are they valued in the marketplace?

      For example there are loads of domains out there selling for a few hundred bucks and they don't have a website. They are not selling based on revenue.

      Your first two points were very interesting though, particularly the CPC on Adwords etc.

      I am thinking I may as well buy and park the domain and sell it once it's aged, if age is a factor (which I suspect it is as an aged domain has better SEO benefits).

      P.s. I can't see a thanks button anymore? If I were able to see it, I'd be hitting it for your post Nick. Cheers.
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  • Profile picture of the author Jason Pereira
    Domains are valued based on the words that make them up. Generally, common phrases / popular niches have a lot of value.

    For example, Pizza.com, MakeMoneyOnline.com, InternetMarketing.com... you get the idea. Look at some past domain sales to get an idea of what valuations can you expect.

    Unfortunately nowadays it's extremely rare to find a domain that can be freshly registered and sold online for anything more than a hundred or so. If you're selling offline, you may get more (for example, if you were selling FloristLosAngeles - an LA florist might pay you a couple G's for it).

    Basically the more popular the niche / phrase, the more valuable the domain. For a phrase that has 3,800 results - it's unlikely that it's too popular and so probably isn't worth the fee. Besides, most parked websites return outrageous values in the hope someone will jump on them.
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  • Profile picture of the author EndGame
    Hi Jason,

    Thanks for the input, appreciate the feedback.

    I did suspect the prices were being grossly over-inflated. It is an area that interests me though. I know a guy in the same office building as me across the hall who found a domain for a big company with the swedish extension, and he has sold it to them for quite a few dollars. I might try my luck doing something like that and keep my eyes peeled for some good domains.
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  • Profile picture of the author gman2319
    Originally Posted by EndGame View Post

    Hi folks,
    I have a suspicion however, that if we registered it, we shouldn't look to sell it for a year or two, as the domain becomes more valuable with age? Is this right?
    This is something that I don't really believe.
    I believe that Domain age isnt as valuable as opposed to the website age.

    I may be wrong here and would love for someone to give me some proof against this. But It makes sense that a domain that is 5 years old but not indexed by google is as good as a brand new domain.

    Unless ofcourse, you have content on it and you rank for it, in which case, when you sell the domain and the new owner rebrands it with his content, there maybe fluctuations in the rankings.

    I guess I am as confused as you. Sorry for adding to the confusion.
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  • Profile picture of the author adferger1
    Domain age has some value when selling a domain... But not much in my experience. Unless ofcause we are talking about a 10+ year old domain... Brandable names are the ones that would earn cash...
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  • Profile picture of the author Thomas Smale
    The best way to find the value of domains is look at previous sales. Go to marketplaces like Sedo and see what has SOLD. Take prices people list domains at with a pinch of salt, as often they are just fishing for a hugely overpriced bid - usually from and end user.

    Precedent transactions are ultimately the best way to value a domain. You can fluke the odd high sale, but generally it will be inline with the market.

    Age is an important factor too, but a year or two wouldn't make much difference. As adferger mentioned the domains that are 10yrs + old have the value.
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  • Profile picture of the author Charleskidd
    Well consider the age of the domain, the domain name, the pr, the backlinks, the search terms, the design, the seo stuff, the features when considering the amount of money. Look around on Sedo and Flippa to see what other people have done. Generally I would build up a little and then sell it. Some do some research you will be fine.
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