What would you pay for ?

[ezimedia]

HI All

I have just been wondering what is the going price for a domain name parked at sedo that is making around $0.50 to $1.00 per day,

Is 6x to 9x the monthly income of the domain a fair price..

So let's say the domain makes 15$ per month could it be worth $90 or $135

I just want to know a ball park figure for what these kind of domains are worth..and what people are willing to pay for them..

Thanks
Tom Dahne

Expired Domain Spy
http://www.expireddomainspy.com

 

[Anthony]

I remember this being discussed previously here. I think most people agreed the going price would be 5x the monthly earnings.

 

[ezimedia]

HI

Thanks Anthony, that gives me a starting point..

Thanks
Tom Dahne

Expired Domain Spy
http://www.expireddomainspy.com

 

[DomainSage]

I would agree that 5 to 6 times the monthly income is about right if you are just going on the revenue it is generating. Obviously you need to add a bit more if it also happens to be a good, short domain name as well.

All the best

Richard

 

[HFear]

Originally posted by bitshack
I would agree that 5 to 6 times the monthly income is about right if you are just going on the revenue it is generating. Obviously you need to add a bit more if it also happens to be a good, short domain name as well.

All the best

Richard

I agree, the price should be 5 or 6 times the monthly income. 7x, or 8x is alot and wouldn't be worth it.

 

[Riceman]

I would say 4-5 times is reasonable. Anymore you risk overpaying

 

[Anthony]

Looks like I hit it right on the head...

So your $15/mo. earning domain should fetch at least $75 if following the 5x rule.

 

[suthra]

i wont pay 75$ for a domain earning 15$. But i would pay 500$ for a domain earning 100$ per month.

I will also consider if the domain is steadily earning 15$ per month for atleast 4 consequtive months if i opt for purchasing a domain earning 15$ per month.

 

[Anthony]

Originally posted by suthra
i wont pay 75$ for a domain earning 15$. But i would pay 500$ for a domain earning 100$ per month.

I will also consider if the domain is steadily earning 15$ per month for atleast 4 consequtive months if i opt for purchasing a domain earning 15$ per month.

Well, that sounds like the 5x rule would be agreeable to you as a seller in most cases, right?

 

[suthra]

Hi anthony, Paying 5x for a domain earning >100$ per month is really profitable for both buyer and seller and also, the buyer starts earning profit immediately after the 5th month.

 

[Guidovdb]

A domain that makes 100$ in a month, will make 1200$ in a year and costs 8$ to renew.

A domain that makes 5$ in a month, will make 60$ in a year and costs 8$ to renew.

So you need 20 domains that make 5$ in a month to make 100$ in a month, but 20 domains cost 160$ te renew.

So when 5 times the monthly revenue is fair for a rather cheap domain then 6 times the monthly revenue is fair for a rather expensive domain.