Valuing A Domain Name

9 replies
What are some of the ways to determine the value of a domain name?
Thank you.
#domain #valuing
  • Profile picture of the author Richard Tunnah
    You can see what similar domains sold for on sites like dnjournal, sedo, godaddy and flippa. However a domain is only worth what a buyer will pay for it.

    Rich
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    • Profile picture of the author Lori Kelly
      Thank you.
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      • Profile picture of the author Lori Kelly
        I see a lot of "Make Offer" listings.
        Is that a wise choice (to list make offer) or does it eliminate a portion of your market?
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    • Profile picture of the author Coby
      Originally Posted by Richard Tunnah View Post

      You can see what similar domains sold for on sites like dnjournal, sedo, godaddy and flippa. However a domain is only worth what a buyer will pay for it.

      Rich
      This is key... Often times you need to "sale" the "idea" behind the domain rather than just the actual domain...

      Examples - Twiends, facebook, flippa, shoemoney, twitter?

      Sometimes the "pitch" is more important than the "product"...

      Domains are just like Real Estate, you have to make the buyer realize the true value... "this house overlooks the beach..." "This domain taps into a whole new market..."

      Good Luck
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  • Profile picture of the author Gene Pimentel
    Lori,

    The best way to get a feel for what your domain is worth is to do a "comp", much like real estate brokers do when pricing a house. To do this with domain names, go to DN Sale Price- Domain Name Sales Price and History and plug in a few of the details (and experiment with switching the details around). You will get a list of domains similar to yours, that have sold recently. Use this information to decide what you should sell for.

    Originally Posted by Lori Kelly View Post

    I see a lot of "Make Offer" listings.
    Is that a wise choice (to list make offer) or does it eliminate a portion of your market?
    It is usually a bad idea to list domains for sale with only a "make offer". According to Sedo.com, domains that are listed with a "buy now" price outsell those with "make offer" by 3 to 4 times.
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  • Profile picture of the author Lori Kelly
    Thanks Gene! Great link. I have experience with comps. I was in real estate for years before the housing market tanked. Good information. I appreciate the reply.
    Lori
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  • Profile picture of the author O0o0O
    Domain age, monthly revenue, the number of words, the number of letters, etc. A 3 letter domain is worth more than a four letter domain. A one word domain is worth more than a two word domain. A domain with common letters is worth more than a domain with uncommon letters. Also the perceived value of a domain by a buyer plays a significant role as well.
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    • Profile picture of the author Sparhawke
      Originally Posted by O0o0O View Post

      Domain age, monthly revenue, the number of words, the number of letters, etc. A 3 letter domain is worth more than a four letter domain. A one word domain is worth more than a two word domain. A domain with common letters is worth more than a domain with uncommon letters. Also the perceived value of a domain by a buyer plays a significant role as well.
      Who says?

      HIG.com may have three letters but I would take BETS.com over it any day of the week. k9.com may have two letters but that will never stop me choosing dog/s.com or even canine/s.com

      Generally speaking one word domains are superior to all others, however the case has to be made that some people really do not need the extra "power" they bring. Why would an insurance company need insurance.com when all they handle is farm machinery? Why would a travel insurance company that never deals with cars need it? (needing and wanting are two entirely different things)

      You have to tailor domains to the people you are approaching and find out what they need and not simply make wide sweeping statements that cannot be verified

      While there are a few factors that can allude to value, they are not metrics that are set in stone like the price of a pint of milk

      Also your last statement doesn't quite pan out, in most cases the reason "non-premium" letters have less value is because there is less you can do with them, but tell that to the people who own zoo.com or even zzz.com
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  • Profile picture of the author Always-A-Warrior
    I personally don't use value but see whats the next big thing or trend, buy the domain name and develop it, make some money and move on to the next project.

    Dnsales, DNJournal, Auctions, etc. as Gene has mentioned.
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