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Domain Appraisal – What’s Your Domain Name Worth?

There’s a lot of confusion about domain name valuation. Some domainers believe it all depends upon traffic, some domainers believe it all depends upon revenue, some domainers believe brandabilty is the key, others believe its the commercial potential.

In the end the definition of selling price remains the same whether it’s real estate or domain names. The selling price is the price at which a willing seller is willing to sell the name and a willing buyer is willing to buy it.

Software tools or web sites that try to give a valuation only give a very, very rough indication of what the value is. There are many examples of domains given very low valuations by automated valuation tools that sold for hundreds of thousands of dollars and those that were valued for such high amounts that the owner thought he had a lottery ticket when he priced it to sell. The only problem is no one else agreed and he’s still holding on to it. If you really want to get a good idea of domain name values look at some of the auctions – or rather look at some of the completed auctions and see what the names sold for (not what people were asking) The market will give you a better indication of value than an automated valuation tool.

Remember that willing buyer? Well its your task, if you are looking to sell that domain name, to find that willing buyer. It might be easy. You just put it up on an auction and people flock to bid on it. Or it might involve a little more. Look around – who might be interested in that domain name? Then contact them and see if they are interested. Make sure if you are sending out an email you follow all of the CAN-SPAM regulations like including your contact information so you can’t be accused of spamming people. Approach in an open and friendly manner, be open to negotiation and don’t set such a high price that you turn people off immediately. A good first step is to see if there is interest and then as the conversation proceeds introduce and negotiate price. Above all if they have said no stop calling or emailing and go to plan B. You do have a plan B don’t you? That will the the subject of another post. I’ve sold domains this way, rented domains, and developed some into business partnerships.

Start out by visiting some of the domain auctions like the ones you can find at HotDotAuctions.com Get a sense of what the market is willing to pay for domain names. It will give you an idea of what domain names sell and what don’t and guide you in the type of names you purchase. I’ll also include a sampling of some ebay auctions following this post. Happy hunting.

All the best,
Ted Sudol
TheDomainHunter

gkiu-com-4-letter-llll-short-pronounceable-premium-domain-name-3-4- GKIU.COM / 4-Letter LLLL Short Pronounceable, Premium Domain Name, 3 4
US $9.99 (2 Bids)
End Date: Sunday Feb-05-2012 12:51:33 PST
Add to watch list
rent-web-server-com-premium-website-domain-name-for-sale-with-no-reserve! Rent Web Server.com Premium Website DOMAIN NAME For Sale with No Reserve!
US $10.99 (3 Bids)
End Date: Sunday Feb-05-2012 13:00:56 PST
Add to watch list
domain-name-lot-bikini-lawn-care-business-lawn-garden-home-landscaping Domain Name Lot: BIKINI LAWN CARE business lawn garden home landscaping
US $19.50 (5 Bids)
End Date: Sunday Feb-05-2012 13:15:01 PST
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portrait-artwork-com-12-year-old-aged-domain-name-with-no-drops! Portrait Artwork.com - 12 Year Old AGED DOMAIN NAME with No Drops!
US $31.00 (4 Bids)
End Date: Sunday Feb-05-2012 13:22:01 PST
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lowest-cost-pills-com-premium-website-domain-name-for-sale-with-no-reserve! Lowest Cost Pills.com Premium Website DOMAIN NAME For Sale with No Reserve!
US $4.26 (3 Bids)
End Date: Sunday Feb-05-2012 13:29:32 PST
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worlds-best-tequila-com-8-year-old-aged-domain-name-with-no-drops! Worlds Best Tequila.com - 8 Year Old AGED DOMAIN NAME with No Drops!
US $17.80 (4 Bids)
End Date: Sunday Feb-05-2012 13:37:30 PST
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buy-by-bidding-com-valued-at-$690-7-year-aged-domain-name-for-websites Buy by Bidding.com. Valued at $690, 7 year aged domain name for websites
US $9.99 (2 Bids)
End Date: Sunday Feb-05-2012 18:00:41 PST
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czweddingset-com-brandable-domain-name-719-unique-searches-mo-wedding-ring-set CZWeddingSet.com - Brandable Domain Name 719 Unique Searches/Mo Wedding Ring Set
US $8.40 (5 Bids)
End Date: Sunday Feb-05-2012 19:52:24 PST
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my-cam-online-info~personal-live-webcam-show-internet-blog-media-domain-name~nr My Cam Online .info~Personal Live Webcam Show Internet Blog Media Domain Name~NR
US $3.26 (5 Bids)
End Date: Sunday Feb-05-2012 20:16:23 PST
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10-yrs-old-valued-$17-693-custom-harleys-net-net-premium-domain-name-for-sale 10 Yrs OLD Valued $17,693 Custom Harleys.net .net Premium Domain Name for sale
US $6.66 (12 Bids)
End Date: Monday Feb-06-2012 10:09:50 PST
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040-nnn-2-3-letter-$1-300-estibot-word-lll-llll-ccc-ca-domain-name-com-sale 040 NNN 2 3 letter $1,300 Estibot Word LLL LLLL CCC .ca Domain Name .com Sale
US $9.65 (13 Bids)
End Date: Monday Feb-06-2012 10:19:26 PST
Add to watch list
ultimatepettraining-com-exquisite-domain-name-nr UltimatePetTraining.com - Exquisite Domain Name - NR
US $5.56 (3 Bids)
End Date: Monday Feb-06-2012 10:49:54 PST
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fresh-perfumes-com-premium-website-domain-name-for-sale-with-no-reserve! Fresh Perfumes.com Premium Website DOMAIN NAME For Sale with No Reserve!
US $11.50 (2 Bids)
End Date: Monday Feb-06-2012 12:59:52 PST
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diet-copilot-com-premium-website-domain-name-for-sale-with-no-reserve! Diet CoPilot.com Premium Website DOMAIN NAME For Sale with No Reserve!
US $10.50 (2 Bids)
End Date: Monday Feb-06-2012 13:45:03 PST
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new-rabbit-com-premium-website-domain-name-for-sale-with-no-reserve! New Rabbit.com Premium Website DOMAIN NAME For Sale with No Reserve!
US $10.50 (2 Bids)
End Date: Monday Feb-06-2012 15:23:30 PST
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established-netbook-ultrabook-store-website-business-&-domain-name-for-sale ESTABLISHED NETBOOK ULTRABOOK STORE WEBSITE BUSINESS & DOMAIN NAME FOR SALE
US $11.00 (2 Bids)
End Date: Monday Feb-06-2012 18:27:32 PST
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psp5000-com-domain-name-for-next-psp-computer-game PSP5000 .COM Domain Name for next PSP COMPUTER GAME
US $149.95 (2 Bids)
End Date: Monday Feb-06-2012 19:05:10 PST
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mr-nine-com-nice-adult-domain-name-for-sale Mr Nine.com Nice Adult Domain Name for Sale
US $4.00 (8 Bids)
End Date: Monday Feb-06-2012 19:30:53 PST
Add to watch list
amkf-com-llll-4-letter-com-premium-quality-domain-name-at-godaddy-no-reserve AMKF.com - LLLL 4 Letter .com Premium Quality Domain Name at GoDaddy No Reserve
US $7.50 (8 Bids)
End Date: Monday Feb-06-2012 20:06:21 PST
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established-dvd-movie-store-affliate-business-website-for-sale!-free-domain-name Established DVD Movie Store Affliate Business Website For Sale! Free Domain Name
US $24.99 (2 Bids)
End Date: Monday Feb-06-2012 20:18:15 PST
Add to watch list

Comments

3 Responses to “Domain Appraisal – What’s Your Domain Name Worth?”

  1. B on March 19th, 2008 1:40 pm

    what do you think of the domain name flameless-candle.com
    How do i get a fair value for my domain name when i find someone that wants to buy it??

  2. admin on March 21st, 2008 4:44 am

    Hi,
    Thanks for visiting TheDomainHunter. Determining the value of a domain is made up of many factors existing traffic, brandability, commercial potential, etc. What are your goals are you looking for a quick sale or longer term income.

    What research did you do before you purchased the name? How many searches are done on that term a day? Was it an existing site and you can show some history and traffic statistics to a potential purchaser? Of if it was an existing site does it have some traffic and links you can tap into?

    Do some research on this name. Answer some of those questions for yourself and you’ll have a better idea of what is a fair value.

    I think one of the best uses for this domain might be in developing it into what my friend Brian Johnson calls a revenue domain. It’s not as daunting as it may seem. It basically means writing some good content articles and putting up a Wordpress site so that google will see you have a valuable resouce that people will want to come back to. This will take some time and effort on your part but you can develop it into a site that will bring in several dollars of adsense and ebay affiliate income a day. I’ve been working with Brian in a pre-release copy of his domain revenue method. He’s writing an ebook which will be supplemented with videos and Camtasia shots. It’s a great step by step blueprint to the domain revenue method.

    If you are looking for a quicker sale you could always put it up for auction. That way the market will tell you what they think its worth. Take a look at some of the ebay actions that follow this post to see what people are paying for various domain names. If you like what you see write your own auction listing. It’s not difficult and the fees aren’t that great. One of the things I’ve found on ebay (in fact any auction) is your listing and how you promote it. Look at some of the most popular auctions and emulate how the best are written. If you have a minimum value you feel you must have you can post a reserve. Set a time – 7 days is the most common. And then sit back and wait to see what the market feels you name is worth. If you are not a member of ebay or want a more complete ebay auction domain listing go over to http://www.HotDotAuctions.com.

    I’ll be writing some more posts on the subject within the next two days. Thanks for stopping by TheDomainHunter.com If there is something you would like to see here let me know.

    All the best,
    Ted Sudol
    TheDomainHunter.com

  3. Aiping Fulepp(new comment) on March 2nd, 2010 1:26 am

    Ideally every company would make time for employees to relax daily, simply because of the results.

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