Determining Value

[Ammudamus]

As we know that value is in the eye of the beholder, I would be curious to see what folks are using as a true way to value a name prior to purchasing. How do you know you are not over paying? How do you make sure you have an exit strategy in place?

Some initial thoughts:

1.How generic the keyword is

2.Google results

3.Possible age of domain name

4.Potential traffic / revenue

5.Developed vs parked

6.Length of domain name

Best,
A

 

[networkmsia]

as all you stated above, and its based on experience in buying and selling.

 

[DotWeekly]

Compare

I think compairing keywords to already reported sales is the Best and most accurate as well as what you stated above. Useing NameBio.com to compare is what I do. Then determine if your domain is "Better" or not of the one that is reported already.

 

[h2o]

It ultimately depends on how much people are willing to pay for it. A domain like VTQZ.com probably goes for about $45 these days but a company with that abbreviation might pay $5k.

 

[Spade]

Compare

I think compairing keywords to already reported sales is the Best and most accurate as well as what you stated above. Useing NameBio.com to compare is what I do. Then determine if your domain is "Better" or not of the one that is reported already.

Took the words out of my mouth. Domain Sales Comps. Just like in Real Property, find something similar that sold recently and use that as a marker.

 

[Ammudamus]

Thanks you to all that provided feedback. I definitely like using comparables, but then again not all sales are released to the public, so that measure becomes a bit difficult. I suppose if you already have an end user or exit strategy in place, you have to recognize if the returns make sense.

Best,
A

 

[gazzip]

Very tricky one to answer as there may be many reasons why a domain goes for what it does I think Mindshare is quiet a biggie to end users although its sure not the only one.

This is one of the best articles I have read about domain valuations

Aftermarket Domain Valuation Factors: Dan Warner Details What Motivates Domain Buyers Today

http://www.dnjournal.com/articles/aftermarket/warner-valuation-factors.htm




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[Ammudamus]

Gazzip,
Thanks for the article. I will be sure to go through it a bit in detail. I wanted to take a case study of a name and gain some feedback from all of you experienced folks. I went to Namebio.com and see that JeansStore.com sold for $25,000 in April 08. Immediately, I think WOW! That seems high, but my opinion means nothing. What variations would be worth more or less?

Worth More:
Jean.com
Jeans.com
Pant.com
Pants.com
Trouser.com
Trousers.com
Slack.com
Slacks.com

Just guesses.. Might be interesting to rank the above in highest to lowest valuation, both reseller and end user.

Worth Less:
Jeans-Store.com
Jeans-Stores.com
Other extensions with this variation or the name sold.

Am I on the right path? Thanks in advance.

Best,
A

 

[lzy]

Gazzip,
Thanks for the article. I will be sure to go through it a bit in detail. I wanted to take a case study of a name and gain some feedback from all of you experienced folks. I went to Namebio.com and see that JeansStore.com sold for $25,000 in April 08. Immediately, I think WOW! That seems high, but my opinion means nothing. What variations would be worth more or less?

Worth More:
Jean.com
Jeans.com
Pant.com
Pants.com
Trouser.com
Trousers.com
Slack.com
Slacks.com

Just guesses.. Might be interesting to rank the above in highest to lowest valuation, both reseller and end user.

Worth Less:
Jeans-Store.com
Jeans-Stores.com
Other extensions with this variation or the name sold.

Am I on the right path? Thanks in advance.

Best,
A

I think what would be comparable would be something like

BuyJeans.com
JeansShop.com

and not Jeans.com and the likes which are obviously an entirely different league. :imho:

 

[Ammudamus]

I am assuming the other names listed above are pure single word generics versus the example to be two keywords?

Typically, what type of Google results are folks looking for their to be a power generic?

Best,
A