Domain Valuation: Domain Name Appraisal’s

How you appraise and value your domain names is an important question that many domainers struggle with, I know I for one had some issues with it when I first got started.

Ted a Domain Parking Money.net reader writes in and asks:

I think one of the most important skills needed when picking domain names is to judge their value and resale ability. That’s something that I haven’t mastered yet. I’ll read the DN Journal top 100 list and few the commercial value hits you right away - some of them I just can’t figure out. Yet some others that you see that seem equally commercial can’t even get a bid for $1.  I think , in the absence of traffic you and I have a similar strategy - short, recognizable words that have some commercial potential.

I was following one of the threads in which a domainer was talking about his strategy in going after what he felt was a really valuable domain name and bidding in the dark for it. In a later post he said he was able to snag it at the last moment against another bidder. In a later post he said he was finally about to reveal the domain name (newsvine.com). I thought nice but what’s the big deal? Why would that be so valuable? However wanting to check I went to look at the Alexa statistics which said that the Alexa rank was 4,800.  That’s great.

How do you go about choosing? What would have alerted you to the value of this domain?
 
Thanks for your help with DRT. I’ve gotten the DRT proxy list, loaded last weeks and todays in - after checking there were only 13 live. But it’s enough that I’m able to do some analysis. Still getting a lot of question marks instead of data which is puzzling because its available readily. It’s just not this convenient to have it all in one spot. Thanks again.

Brian:
Being able to put a price on a domain name is a very tough process. Bottom line is that their is and will only ever be one given domain name (example cars.com. money.net or cheaptickets.org). Whether were talking about a premium .com name (such as our example cars.com) or a “second string” domain name (cheaptickets.org) in the end their is “only one”. I think this is one of most important aspects of domain pricing. Many top domainer understand it is not about

how much is this domain worth ….

Rather, it is about how much would the right person be willing to pay for this name.

In our premium domain example cars.com is not going to be as valuable to say a chef, banker or retail outlet company like Walmart. However, that same very domain will be worth much more to someone who is in the auto or car business. This example works best when trying to place a value on a true premium .com domain address.

This example is not as accurate when evaluating what I call a “second string” domain name. The reason being is simple, their is just a whole lot more of these types of names. A savvy domainer in fact can often register these types of names with some time, research and the proper tools for $7 bucks. However all the true premium domain names were snapped up years ago.

Having A Domain Business Plan & Formula Can Make All The Difference

Having a domain business plan or formula for what you buy (and why you buy it) can really make the process of domaining a lot easier and more profitable, it also reduces the financial risk. When I started adding “domaining or domainer” mentality to my internet marketing strategies I was after very specific types of domain names. Most of the names I own I plan on developing until I reach a certain level of income (steady monthly income from programs like adsense, affiliate programs, ebook sales, software sales, ect).

Your Formula Should Cover:

• How you purchase and value domain name?
• How you go about listing and selling the names?
• What types of domain names do you seek?

Having a plan in place prior to purchasing 1000 domain names can really make a big difference, once you have a portfolio established you will know your next step of action.

Ted Mentioned:

I think , in the absence of traffic you and I have a similar strategy - short, recognizable words that have some commercial potential.

Brian:

I purchase 95% of my domain names on traffic keyword phrases (example: gpsreviews.biz) and or expired domains in which I feel I can capitalize on traffic quicker than if I were to register a new domain today.

Rule Number One: It Is All About Traffic.

$$ Golden Rule $$: commercial traffic …
i.e: Traffic based on commercial search terms for goods sold or services rendered.

About The Domain Research Tool
I try to reduce my list prior to getting started with the domain research tool. Sometimes I let the domain tool run overnight – this way I can work during the day time. However most of the scans I am doing are for fewer than 1500 domains. Often times I will scan 500 names at dinner time, this way I can further research those very names the following day.

To Your Success,
Brian J