question re: Valuation of developed websites

[Doble Korona]

Hi, I am a newbie in the sale of aftermarket domains. I have come across several articles that say that domains are like virtual real estate and as an intangible asset, they are said to appreciate in value once they are developed. By developed, I assume we are talking about the integration of services such as web design, SEO, SEM, social media, Cloud, phone apps, voice search, etc.

My question is how do I quantify or prove this new valuation to my customer? If I offer an aftermarket generic domain such as widgets(dot)com for $1,000 with the promise of a higher value after it is developed, is there any rule of thumb or formula I could use in order to arrive at this new valuation?

 

[CryptoCannabis]

Developed, especially with the surge of flippa popularity, doesnt mean what it use to at all. With flippa the premium for a website with lets say all the fundamentals, social media, seo setup, content, all the fundamentals set up, is very small, 50 dollars, maybe 100, it use to be that you could get a lot more for having a real website but these last few years its become so easy that "developing" a site doesnt mean much at all.

The fundamental things that do matter are basically 1. SEO Indexing - Have you had the site indexed with some kind of landing page as soon as you got it x years ago, this one is simple, basically make sure to get your domains indexed with some kind of landing page asap because this is the easiest and most fundamental way to gain value especially if you have a keyword domain that may be backlinkedin often due to the name. 2. Have organic traffic with proven stats over at least last 3 months 3. Have setup a clear way to generate profits on said website and show proof that there is revenue being generated through current setup. Also if you can get at least 1 or 2 partnerships for advertising you can transfer over for advertising is huge.

Flippa has really made it harder(and lowered the valuations) to valuate "develop" sites