How To Properly Estimate The Domain Name.

[makemoneylol]

I think estibot can be way off when estimating domain.

I do not claim to be a pro at domain name estimation but I wanted share a good way to measure domains price for .com and .net is:

1.For .com ((Exact keyword search in google)*(AVG CPC))/10

for .net ((Exact keyword search in google)*(AVG CPC))/15

If the keyword based around buyer keywords it can go for

((Exact keyword search in google)*(AVG CPC))

In addition you can assign value for how well that keyword sells. If it sells very well you multiply the end value by 1 if it sells so so you multiply the end value by 0.5

In other words 1=100% sell able 0.5 = 50% sell able

Also please consider what is the competition for that keyword. If it has 1 mil+ competition potential buyers will be hesitant to enter such market.

This is my personal formula I come up with.

Please add your own domain name estimation methods.

 

[Sparhawke]

My way is the tried and tested method of picking a random number out of the air and doing a bit of bovine scatology to divine pleasing numbers (or not)

Honestly, for me I just look at the commercial intent and then guess at what I would be happy to pay as a business owner and also what i would be happy to get as a domainer then split the difference.

Too much science in this does not work because science and mathematics is too exacting when you are dealing with an infinite universe of possibilities. Ask a boss whether he would like to buy a domain when he has just had a good evening with his wife and you may get a good result, the total opposite of whether he just stubbed his toe 2 minutes ago.

All you can say is what you would like to get for it and leave it at that, after a while you get better and better at it but you should never rely on anyone to do your appraisals...it is all very good and well getting further ideas but you should really be seeing your own potential and with that you will find yourself better domains.

 

[rmg]

It is impossible to predict but for example the sales history is a good indicator...

 

[richrf]

CPC is a method to value an ongoing business at a given location but does not include potential. For example, what is worth more, a ongoing business in a suburban mall that is making $100,000/year or a plot of land smack in the middle of Park Avenue? The two have to be valued differently because the suburban mall location is much easier to purchase (even with comparable revenue) than a plot of land in Manhattan.

Value of a domain name (the land) has to be estimated separately from value of the building (the website) which has to be separated from the value of the business (CPC).

The first aspect can be estimated via comps (NameBio or DNSalePrice). The second by the amount of work it would require to replicate building the site again. The third by sales metrics.

Now, here is the biggest rub. The second and third factors can be reasonably estimated by good estimators. However, the first factor (land) is extremely difficult to estimate because, unlike the real estate industry that has an MLS service that provides lots of transparency, there is no transparent place to go to find out all current sales of domains.

Estibot can do a reasonable job with factor three (sales and traffic metrics), cannot do anything about factor two, and can only roughly do factor one. This is the problem any appraiser would have.