How To Value A Domain? How To Appraise it?

[novatheory]

Hello folks,

This is my 1st post on namepros.com. While I am a returning visitor (for quite a while) I just register my account. Now with that been said.

I been working online (development, design, marketing) since 1998 when the wave of domain registration took a huge peak. While I been registering domains for many years, I never work to sell a domain.

I got into snapnames, namejet and got myself a few domains to add to the list of currently owned domains. The oldest been 11 years of registration.

Now I know about programming, design, SEO. I can develop website/domains and generate traffic on them. Now my question would be (enough of talking getting to the point now).

How you value a domain for selling it? It seems appraisals have a huge potential to be a scam and using automated tools is a no no. Is there a list, or excel spreadsheet to follow? A guideline that explain if A = B then is Z?

I have read in many different websites that it all depends of the traffic, others that it all depends of uniqueness, others it all depends on how natural it is? But there must be a standard, a point of reference.

Thankx in advance.

P.S. I read : http://www.namepros.com/domain-appraisals/79784-the-unofficial-np-domain-appraisal-guide.html - So I am looking for something more detailed. If it makes sense.

 

[Archangel]

Welcome to NamePros

Everyone has their own method but I'd suggest you to look through comparable sales figures. Go to www.dnsalesprice.com & search for similar sales. Be sure to make your search as close to your domain as you can ie if you own a .net, search only .net domains. If ever in need, you can post a request for an appraisal here at NP, too

 

[Name Trader]

ditto, but I use NameBio.com and DNJournal.com

 

[novatheory]

thx to both. Been looking at this tools to make an idea/sense of how to value a domain.

 

[GiftedDomains]

First of all you have to understand that there are different categories of domain names with Value

1) Keyword Generic Domains. Dictionary words , example: NewyorkAppartments.com

2) Short domains LL.com/net/org LLL.com/net/org , LLLL.com , doesn't necessary have to mean something, also some number domain names like NNNN.com, etc

3) brandable domain names, names that sound cool and can be branded, i.e. Yahoo, Google, Bing, Ebay, etc - mostly 4 to 7 words, short nice and pronounceable

4) Expired Names with Traffic

5) Domain names with Traffic and Revenue / websites

For 1) you can use Google Adwords Keyword Tool. There you type in your domain name (without TLD) and the way users type it in Google to search something (example: Newyork Appartments). Then click EXACT MATCH at the left side and go. Then google gives you the numbers of exact searches people have searched in google. Also it gives you the level of competition for the keyword. Low, Middle, High. High is very good, and it means that companies are paying a lot of money for ads. Therefore your domain name is also better. The more exact monthly searches combined with high competition, the more valuable is your domain name. But for development, also keywords with low competition are good, because it is easier to show up on first page of google and make some money with Adsense for instance. - After you found out the exact numbers, you can compare the numbers, to the numbers of KEYWORD domain names already sold in databanks like Namebio.com DNsaleprice.com DNJournal.com, etc. to find out the approx. possible market price of your name.

For 2) There are some price guides like
3character.com , llllsales.com, etc.
There you can find out approx. prices
Also follow domain name sales auctions of forums to see for how much they go. Or lookup the a.m. mentioned past sale databases again

For 3) There is no price guide. Its pure luck.
Your name could be the next Google, or it could end up deleted by you without being able to sell it even for 10 dollars. Try to choose names that sound nice, pass a Radio test, etc. Or simply avoid such names if you are not sure.

For 4) It all depends on Traffic of domain names. It can be an ugly name with very high traffic and have some value. Mostly these names are domain names which had a website in the past and had some backlinks, and therefore still expired Traffic. Follow Domain Name auctions to see for how much expired names with traffic sell. But many times the traffic drops , because links are removed by websites and google, etc. You can make money at the beginning mostly and not for a long time, if you don't develop the name

For 5) Calculated based on Revenue of let say the past year, price: multiple times revenue of a month, follow Flippa.com to see for how much websites with revenue are sold

Hope that helps a little

 

[novatheory]

First of all you have to understand that there are different categories of domain names with Value

1) Keyword Generic Domains. Dictionary words , example: NewyorkAppartments.com

2) Short domains LL.com/net/org LLL.com/net/org , LLLL.com , doesn't necessary have to mean something, also some number domain names like NNNN.com, etc

3) brandable domain names, names that sound cool and can be branded, i.e. Yahoo, Google, Bing, Ebay, etc - mostly 4 to 7 words, short nice and pronounceable

4) Expired Names with Traffic

5) Domain names with Traffic and Revenue / websites

For 1) you can use Google Adwords Keyword Tool. There you type in your domain name (without TLD) and the way users type it in Google to search something (example: Newyork Appartments). Then click EXACT MATCH at the left side and go. Then google gives you the numbers of exact searches people have searched in google. Also it gives you the level of competition for the keyword. Low, Middle, High. High is very good, and it means that companies are paying a lot of money for ads. Therefore your domain name is also better. The more exact monthly searches combined with high competition, the more valuable is your domain name. But for development, also keywords with low competition are good, because it is easier to show up on first page of google and make some money with Adsense for instance. - After you found out the exact numbers, you can compare the numbers, to the numbers of KEYWORD domain names already sold in databanks like Namebio.com DNsaleprice.com DNJournal.com, etc. to find out the approx. possible market price of your name.

For 2) There are some price guides like
3character.com , llllsales.com, etc.
There you can find out approx. prices
Also follow domain name sales auctions of forums to see for how much they go. Or lookup the a.m. mentioned past sale databases again

For 3) There is no price guide. Its pure luck.
Your name could be the next Google, or it could end up deleted by you without being able to sell it even for 10 dollars. Try to choose names that sound nice, pass a Radio test, etc. Or simply avoid such names if you are not sure.

For 4) It all depends on Traffic of domain names. It can be an ugly name with very high traffic and have some value. Mostly these names are domain names which had a website in the past and had some backlinks, and therefore still expired Traffic. Follow Domain Name auctions to see for how much expired names with traffic sell. But many times the traffic drops , because links are removed by websites and google, etc. You can make money at the beginning mostly and not for a long time, if you don't develop the name

For 5) Calculated based on Revenue of let say the past year, price: multiple times revenue of a month, follow Flippa.com to see for how much websites with revenue are sold

Hope that helps a little

This was just awesome. THX a million. I understand now more in-depth how to categorized a domain and understand some of its value. The rule of of thumb, a domain worth is as much some one is willing to pay to own it.

Now what I am looking to understand is when to develop a domain, when to park it, when to redirect, etc. One of the most tedious task, and I will guess all marketers will agree is building links to a domain. It consume so much time, and is a must do if you developing the site.

 

[Nazz]

For 1) you can use Google Adwords Keyword Tool. There you type in your domain name (without TLD) and the way users type it in Google to search something (example: Newyork Appartments). Then click EXACT MATCH at the left side and go. Then google gives you the numbers of exact searches people have searched in google. Also it gives you the level of competition for the keyword. Low, Middle, High. High is very good, and it means that companies are paying a lot of money for ads. Therefore your domain name is also better. The more exact monthly searches combined with high competition, the more valuable is your domain name. But for development, also keywords with low competition are good, because it is easier to show up on first page of google and make some money with Adsense for instance. - After you found out the exact numbers, you can compare the numbers, to the numbers of KEYWORD domain names already sold in databanks like Namebio.com DNsaleprice.com DNJournal.com, etc. to find out the approx. possible market price of your name.

Do many domainers today find this accurate..? Is it a method I should implement..?

I'm just trying to get an insight on how to value domains prior to registering/buying.

 

[Name Trader]

@Nazz - You quote a post which is six years old, and want us to confirm if it is accurate? Actually, Gifted Domains was a very experienced member here, whose presence is sorely missed. I would say the gist of what he has said is as true today as it was six years ago. Actually, I think he must have been truely gifted to write this six years ago, and for it to be still true today.

The only thing I would probably add, is the presence of Chinese investors today, which were not their in such great numbers, if at all, six years ago. They have a preference for numerical domains, and short three/four letter domains, in .com as well as some other cctld's.

 

[hookbox]

First of all you have to understand that there are different categories of domain names with Value

1) Keyword Generic Domains. Dictionary words , example: NewyorkAppartments.com

2) Short domains LL.com/net/org LLL.com/net/org , LLLL.com , doesn't necessary have to mean something, also some number domain names like NNNN.com, etc

3) brandable domain names, names that sound cool and can be branded, i.e. Yahoo, Google, Bing, Ebay, etc - mostly 4 to 7 words, short nice and pronounceable

4) Expired Names with Traffic

5) Domain names with Traffic and Revenue / websites

For 1) you can use Google Adwords Keyword Tool. There you type in your domain name (without TLD) and the way users type it in Google to search something (example: Newyork Appartments). Then click EXACT MATCH at the left side and go. Then google gives you the numbers of exact searches people have searched in google. Also it gives you the level of competition for the keyword. Low, Middle, High. High is very good, and it means that companies are paying a lot of money for ads. Therefore your domain name is also better. The more exact monthly searches combined with high competition, the more valuable is your domain name. But for development, also keywords with low competition are good, because it is easier to show up on first page of google and make some money with Adsense for instance. - After you found out the exact numbers, you can compare the numbers, to the numbers of KEYWORD domain names already sold in databanks like Namebio.com DNsaleprice.com DNJournal.com, etc. to find out the approx. possible market price of your name.

For 2) There are some price guides like
3character.com , llllsales.com, etc.
There you can find out approx. prices
Also follow domain name sales auctions of forums to see for how much they go. Or lookup the a.m. mentioned past sale databases again

For 3) There is no price guide. Its pure luck.
Your name could be the next Google, or it could end up deleted by you without being able to sell it even for 10 dollars. Try to choose names that sound nice, pass a Radio test, etc. Or simply avoid such names if you are not sure.

For 4) It all depends on Traffic of domain names. It can be an ugly name with very high traffic and have some value. Mostly these names are domain names which had a website in the past and had some backlinks, and therefore still expired Traffic. Follow Domain Name auctions to see for how much expired names with traffic sell. But many times the traffic drops , because links are removed by websites and google, etc. You can make money at the beginning mostly and not for a long time, if you don't develop the name

For 5) Calculated based on Revenue of let say the past year, price: multiple times revenue of a month, follow Flippa.com to see for how much websites with revenue are sold

Hope that helps a little

A blast from the past. Nice to see you posting again Gifted.

 

[Nazz]

@stub Yeah, nothing wrong with knowing if the process he shared back then is still relevant today, though thanks for clarifying.

I'm finding, digging up old posts to be really beneficial in more ways than one. Its like discovering treasure.

 

[Eric Lyon]

@stub Yeah, nothing wrong with knowing if the process he shared back then is still relevant today, though thanks for clarifying.

I'm finding, digging up old posts to be really beneficial in more ways than one. Its like discovering treasure.

You may also want to take a little time to look over the following guide that gives some more ideas as to what all the different factors are being considered in an evaluation: https://www.namepros.com/threads/appraisal-guide-for-better-results.823617/

 

[Nazz]

Thanks for that Eric, I came across your post when I first arrived to NP.

 

[Name Trader]

A blast from the past. Nice to see you posting again Gifted.

This wasn't Gifted Domains writing again, Nazz was quoting an old post. But Gifted Domains is sorely missed.

 

[Name Trader]

@Nazz - Sorry the post was only 3 years old, not 6.

 

[hookbox]

This wasn't Gifted Domains writing again, Nazz was quoting an old post. But Gifted Domains is sorely missed.

I thought this thread was from yesterday and I see it was started 3 years ago. I do wonder where Gifted went. He was really active and poof he just disappeared.

 

[Nazz]

@stub Lol, all good. We need to get you a calculator sir :P

 

[Name Trader]

I've got a calculator, but it needs new batteries