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How To Sell Developed Domain Names?

Labeled as strategy in Domain Selling and Domain Sales, started by redemo, Sep 18, 2021

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  1. redemo

    redemo Established Member

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    @NamePros I can't find a thread section called " Developing and Selling Developed Domain Names " but I think it would be a good section to start so we can share general ideas, strategies and tactics. I have developed many domain names but never tried to sell a developed domain name yet. This is a post about the whole process of buying domain names, developing domain names and selling developed domain names. Cheers.
     
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  2. lock

    lock free.marketing VIP

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    The thread section is general and the post is "how to sell developed domain names" carry on. This is it.
     
  3. lock

    lock free.marketing VIP

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    Now the domain all of a sudden loses all merit and it becomes about how much traffic it generates. Buyer attempts to beat you down over current earnings not potential and expects the numbers of searches generated automatically like they think it is a given Or is a great looking brand but unless under spot light it flies under radar and you're getting low balled.
     
    Last edited: Sep 18, 2021
  4. redemo

    redemo Established Member

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    Some things I have been thinking about to estimate a fair price for a developed domain name. 1 is how much the developed domain name earns monthly, example if the site earns $ 250 monthly then can it be valued at 12 (months) x $ 250 = $ 3000? 2 is sustained traffic and by that it means from organic sources such as search engines, links and social media platforms, example if the developed domain name gets 500 visitors daily it's 15000 monthly which can be monetised by the right person so I'd assume it adds value. 3 Links and search engine rankings. This can be proved with available software. But high ranking for competitive words is hard to achieve these days and links take time to get unless paid for (and search engines are getting very wise to it). 4 is content which is text, images, audio, logos, banners, ads and video, all of which takes time to create to a professional standard but does it add to the end price and if yes then how is it calculated? @dncafe How do you price developed domain names?
     
    Last edited: Sep 18, 2021
  5. lock

    lock free.marketing VIP

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    When that is done using paid traffic it becomes more and more about the earnings. Why part with something that pays for itself without work. You need to not just earn a few months but prove a few years earnings then after making so many you get disheartened over a newbie flogging a couple of brands big money no work in first year. I am not going to argue that somehow the domainer that does less goes further but i tend to just cause myself problems trying to do too much.
     
  6. biggie

    biggie GreenFriendly.com VIP ★★★★★★★★★★

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  7. lock

    lock free.marketing VIP

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    Domain selling and discussion covers websites really as i can make the crappiest name in world more popular just with work as a web site over domains with merit. Work over rules everything.
     
    Last edited: Sep 18, 2021
  8. Peak.Domains

    Peak.Domains Top Contributor VIP

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    It depends on a number of factors, obviously, but a decently put-together affiliate or display ad site can bring in around 30-40x of its average monthly earnings. In your example above, a site that's making $250 per month ought to be able to fetch you around $7500, give or take.
     
  9. lock

    lock free.marketing VIP

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    Take off the binoculars you're seeing pixels.
     
  10. redemo

    redemo Established Member

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    Done. Just for you.
     
  11. redemo

    redemo Established Member

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    That thread doesn't discuss the stages before the sale. But cheers for your suggestion. A developed domain name is also called a website, yes. I'm not using this thread to sell my own websites but rather to gather the information needed to do so later on other platforms not @NamePros.
     
    Last edited: Sep 18, 2021
  12. redemo

    redemo Established Member

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    My general reason for selling a developed domain name (website) that makes money would be let's say it earns $ 250 monthly and somebody (who has bigger ideas or more experience in the subject) offers $ 5000 well then I don't have to wait 20 months for $ 5000. Also I might have other more profitable sites that take the same time to maintain.
     
    Last edited: Sep 18, 2021
  13. lock

    lock free.marketing VIP

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    Hehe thought you (Avatar not actions) were a monkey. Now see the tail.
     
    Last edited: Sep 18, 2021
  14. redemo

    redemo Established Member

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    Last edited: Sep 18, 2021
  15. mr-x

    mr-x Top Contributor VIP ★★★★★★★★★★

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    Includes in a quote from estibot or a sales thread on namepros.
     
    Last edited: Sep 18, 2021
    • A painting starts on a canvas
    • A house starts on a foundation (land)
    • A website starts on a domain.
    No matter what is created, the start factor will always remain the key element.
    • Canvas
    • Foundation (land)
    • Domain
    With that in mind, it's also easier to digest that the value of each start factor will go up in association to what is designed, built, developed, etc. On it.

    The more genuine value the product, service, information, or association has, the greater the value of the start factor rises, too.

    While traffic is one factor in a developed domain value total, you have to consider all the other valuing factors in association to the start factor, or in this case, the domain.

    As I've said for many years, it's nice when a domain can pay it's own renewals and the cherry on top if it brings profits exceeding overhead maintenance costs.

    Perspective would be 10 years renewals x a discounted $9 renewal cost = $90 x 10 domains = $900.

    Larger portfolio holders may look more like 10 years renewals x a discounted $9 renewal cost = $90 x 100 domains = $9,000

    I'm using 10 years as a general aging and market shift target. Most times, it can take 20 to 30 years to mature as a trend or niche going viral. And even more common, no amount of time helps value rise.

    At least with developments on a core start factor, any investment can be influenced to generate revenue with more time and investment into it.

    The biggest killer of developed domain assets is spam score and scam reports.

    Any startup with a decent investigative acquisitions team will take note of that and immediately look at alternatives.

    Those types of reports/scores can set back a companies launch by months or even years trying to get off blacklists, supplemental indexes, etc. Not to mention, the scam association to the domain on 3rd party report sites could devastate any chance of a new business building trust in their respective markets.

    In short, developing a domain can hurt a domain forever or increase its value and authority. It can be a tightrope walk at times trying not to tip too far to one side and lose balance.

    That's just my opinion anyways.

    What works for one may not work for others.
     
    Last edited: Sep 18, 2021
  16. mr-x

    mr-x Top Contributor VIP ★★★★★★★★★★

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    Change foundation to Land and you have a better domain analogy
     
  17. Land, blank tablet of paper, blank pages of a book, etc...

    Exactly... everything has a starting point in which value sits upon. :) 😀

    Updated post
     
    Last edited: Sep 18, 2021
  18. scithe

    scithe Upgraded Member Gold Account ★★★★★★★★★★

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    I think the thing is, websites are worth money for their content and I imagine if the name is decent/fitting then that is a good selling point. If you are buying a website where people come to talk about fishing and it's got an active community with 10 years worth of content, it doesn't matter if that's at fishing.com or fishingisfun.com.

    but I think just those two domain names have vastly different values for just the domain alone.
     
  19. Exactly... the evaluation variables of a domain can sometimes differ greatly from that of a developed domain asset.

    For example (example 1 & 3 is only accessible to VIP, Pro, and Gold members):

    Example 1: common domain evaluation variables - https://www.namepros.com/threads/ve...m-chicveg-com-56-others.1247946/#post-8397883

    Example 2: common developed domain evaluation variables - https://www.namepros.com/threads/se...tateclipart-com-website.1133855/#post-7216914

    Example 3: common spam/scam scored domain evaluation variables: https://www.namepros.com/threads/in...eld-guru-websitehost-io.1250047/#post-8394863

    Everyone evaluates differently, but these should give an idea to some following this discussion and not sure what variables are being looked at sometimes.

    At the end of the day, a domain is really only worth what a buyer and seller agree on.
     
    Last edited: Sep 18, 2021
  20. redemo

    redemo Established Member

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    @Eric Lyon You have a very good insight into this. Here's some questions if someone is looking to buy a domain name and finds a professional website (related to the domain name) hosted on it, and upon further investigation the domain name's spam score is zero or very low, will they be dissuaded from buying the domain name because there's no blank canvas? Next if a domainer has a portfolio of 1000 names and I come up with a way they can each earn all reg fees over a year is it a commercially viable service? I'm talking about mini sites related to the name with a variety of monetisation methods including lead gen forms, affiliate ads, and other methods depending on the name, subject and associated high volume keywords. Cheers.
     
    Last edited: Sep 19, 2021
  21. FranckJ

    FranckJ New Member

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    Last month, I sold a Fishing site (mainly gear reviews) and a Fishing domain.
    My intention was to upgrade the site's domain name with this much better domain but finally I didn't want to wait the end of domain migration (and possibly a fail in it) so I list both separately for sale.

    Each sold for $10k+.
    The site itself would never reached $20k+.

    I agree with the statement that a developed domain is a website and so a different asset. I personally managed both assets differently.
    Only if you are at some level the domain name will add value to a site.

    There's no such 'developped domain' asset 🙂
     
  22. redemo

    redemo Established Member

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    A website still resides on a domain name. Change the domain name of a developed site and its worth far less imo. Therefore a developed website is also a developed domain name as opposed to an undeveloped domain name which is a web page. Developing adds value. My question remains. How can you logically calculate that value. Good answers so far. Looking for a concrete formula.
     
    Last edited: Sep 22, 2021
  23. FranckJ

    FranckJ New Member

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    There's no such formula. Every site is a different business.
    Is there a common formula to value a drugstore in India and a design agency in London?
     
  24. redemo

    redemo Established Member

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    I think there is such a formula and I intend to find it. First let us estsblish that a developed website, that being an established website, has value and that value is determined by its features. Next we need to identify these features. What are they?

    Domain name (resale value)

    Traffic

    Search ranking

    Topic

    Content

    Backlinks

    Social shares

    Income

    Assets (social media, other domain names)

    Contracts

    Software

    Theme development

    Programming

    Brand (copyright and trademarks)

    Any others?
     
    Last edited: Sep 22, 2021

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