Determining asking price for a domain...

[JohnnyNight]

Hi All,

Wondering what is an accepted formula for determining the asking price these days for a domain.

If a domain is earning about $1,500 a year through parking, I see some say you pick a number of years and multiply by the $1,500.

Is there a certain number of years that are considered the norm these days for figuring the price..?

Thanks

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Related:

• What is the real value of your domain name?

 

[NameOmnia]

Hi,
so one of the rules to price EMDs is :

EMS ( x 35% ) x CPC x 12

In your case if your name makes 1500$ py that name will be most likely payed 1500$

 

[Nappy Bunch]

I know some investors that would pay 27 x monthly income.. It all depends where the traffic is coming from and what industry etc

 

[JohnnyNight]

Don't follow what you're saying..

can't even tell if you're being serious..

if you're saying the sale price should be $1,500 because the domain makes $1,500 per year... no way that..

it used to be between 5 and 10 years as far as I remember..

no point selling a domain for just 1 years income...

---------- Post added at 06:04 PM ---------- Previous post was at 06:01 PM ----------

nappy,

so you're saying about 2 years...

still not worth it at amount..

 

[NameOmnia]

I am serious and I told you above what the general rule for appraising EMD names is. I didn't make it. It's the one the " bigs " use. Not my fault if you don't like it

Don't follow what you're saying..

can't even tell if you're being serious..

if you're saying the sale price should be $1,500 because the domain makes $1,500 per year... no way that..

it used to be between 5 and 10 years as far as I remember..

no point selling a domain for just 1 years income...

---------- Post added at 06:04 PM ---------- Previous post was at 06:01 PM ----------

nappy,

so you're saying about 2 years...

still not worth it at amount..

 

[johname]

Will it payout $1500 next year? No guarantees, buyers know that.

They go though a lot of things when deciding the multiple.

Big one in my eyes, would an enduser buy the domain strictly on the domain for their only website.

Could be a backlink producer that will run dry before the 27 months nappy talking about.

It might not even made $1500 in a year, instead just did that average the first month you owned it. And turns out its seasonal or a quick fad

If your selling it to domainer they will analyze it like crazy and tell you their number. With a pawn shop buying tacks in mind (its got to have some meat on the bone and reflect parking payout decay) Goodluck

 

[JohnnyNight]

I think the real situation is.. It's not my fault that you don't know what your talking about..

I have never heard of one year ever, especially for a domain that will have earning potential for years to come.. it's that type of domain..

you didn't even qualify your statement, in terms of the relative properties of the domain..

It used to 10 years as my recollection back when

---------- Post added at 07:06 PM ---------- Previous post was at 07:06 PM ----------

Owned the domain for 2 years... steady $120 - 125 a month

 

[NameOmnia]

LMAO.

http://archive.is/gwpgj


As I said... I didn't make it; I am sorry if you don't like it but that's how it is. Beside this the EMS x CPC x 0.35 ( 0.25 ( low competition ) or 0.45 / 0.50 ) x 12 is the price for an end user. You can expect much less if you sell to a reseller.
But as you said..maybe Andrew Rosener doesn't know what he is talking about.
Instead of insulting did you try to use the formula and see what the price of your name would be?

10 years look like dreamland to me.

You took my opinion/suggestion as personal while it wasn't. maybe the market has slightly changed in the last years...10 years just doesn't happen. maybe you should consider keeping that name

I think the real situation is.. It's not my fault that you don't know what your talking about..

I have never heard of one year ever, especially for a domain that will have earning potential for years to come.. it's that type of domain..

you didn't even qualify your statement, in terms of the relative properties of the domain..

It used to 10 years as my recollection back when

---------- Post added at 07:06 PM ---------- Previous post was at 07:06 PM ----------

Owned the domain for 2 years... steady $120 - 125 a month

 

[forge]

My general rule is if the domain earns, say $1500/yr, in parking and a "reseller" wants to offer you 12 months or $1500, then you politely tell them to go F themselves.

 

[NameOmnia]

My general rule is if the domain earns, say $1500/yr, in parking and a "reseller" wants to offer you 12 months or $1500, then you politely tell them to go F themselves.

I agree but that happens all the time!
So you better keep your name in that case.

 

[SpareDomains]

Depends on the name. If the name isn't the most desirable on it's own or if selling to someone that only cares about PPC revenue then yes you'll be looking at revenue per month x whatever multiple you can pull.

If the name has commercial appeal with many end user buyers the name can have value on it's own. In 10+ years of selling commercial .com domains don't think I've ever had an end user ask for traffic stats on many sales mostly in the 1-10k range that barely made any parking income. Domainers care about PPC, end users not so much. So your looking at how good is the domain for the business sector combined with how profitable is the industry the domain relates to. A domain that describes a $1 product won't be as valuable as a domain where each lead or sale generates xxx-xxxx and the reason domains that describe high profit sectors loans, mortgages, finance etc... usually generate more PPC revenue.

 

[m-i-k-e]

LMAO.

http://www.domainsherpa.com/rosener-equation-value-domain-names/


As I said... I didn't make it; I am sorry if you don't like it but that's how it is. Beside this the EMS x CPC x 0.35 ( 0.25 ( low competition ) or 0.45 / 0.50 ) x 12 is the price for an end user. You can expect much less if you sell to a reseller.
But as you said..maybe Andrew Rosener doesn't know what he is talking about.
Instead of insulting did you try to use the formula and see what the price of your name would be?

10 years look like dreamland to me.

You took my opinion/suggestion as personal while it wasn't. maybe the market has slightly changed in the last years...10 years just doesn't happen. maybe you should consider keeping that name

It sounds like you're confusing what he's asking. He's asking about valuing names based on a revenue multiple. The formula that you are suggesting is giving a rough estimate strictly on the keywords within the domain.

 

[NameOmnia]

It sounds like you're confusing what he's asking. He's asking about valuing names based on a revenue multiple. The formula that you are suggesting is giving a rough estimate strictly on the keywords within the domain.

No I am not confusing what he is asking.
I have already said that IMO from a reseller he will be offered 12 months so he might want to try out that formula and see what result comes out.

If it's more than the 12 month revenue than he can try to negotiate the price using that as a card to play. ALSO an investor would probably consider more the formula, which is well known and used, rather than a price based on the parking revenue which can change, be manipulated etc. Then it's up to the seller to take the offer, decline or negotiate.

It's just that everyone is sooooooooooo touchy!!! Not my fault if resellers offer 12 months, not my fault if parking revenue can be not a certain science to base the price of a name on and not my fault if it's not what the OP expected. I obviously wish him to sell it for the highest price as I don't have any interest in bringing his name or work down.

 

[ulasbbtr]

If anyone steadily receiving parking revenues for a domain, same or better than the previous year for every year, then he can pay you more. What I see for %99.9 of domains, revenue drops high, even while uniques stay same in that period. I don't know whether advertisers or parking companies is the cause. One day you woke up and could find your domain becomes a zero-click domain or a google banned one. Then just forget about 1500$, and smile if you earn 150$ with it. So, the ones with better experiences maybe will pay you more then one year.

 

[Name Trader]

There is no guarantee that it ill make $1,500 next year. If you are going to guarantee to the buyer it will make $1,500 for 10 years, then you might get a deal. There is also no guarantee that the $1,500 you made last year was legitimate. Me personally, I wouldn't pay more than 1.5 yrs without guarantees. The value of domain parking decreases rapidly over time, as backlinks drop off etc. And I know what I'm talking about. Believe it or not.

 

[jacal1]

Like almost any question about pricing names the answer is complicated and very hard to give without knowing the name. The following factors would be involved:

1. What is the trend? Did it do $1,500 this year which is double last year which was double the year before that? Then you could probably get a multiple of 3-4x just based on that.

2. Or was the trend moving in the other direction which could deflate the price

3. What is the value of the underlying domain name? What would it sell for absent traffic? You'd need to add that amount.

These are just three examples...