Rate it !!!

[domainexpert]

Thank You Peter. I hear you.

I have lot of people giving very educated opinion based on previously sales history & how many times it is searched on google.

On other end some say there is no real formula and it really depends what buyer is willing to pay for it.

 

[snoopy]

really depends what buyer is willing to pay for it.

What a buyer might pay may have very little to do with what the name is really worth.

A name can be sold several is short period of time for completely different amounts. If a buyer is willing to pay $500, the next week someone offers $5000 and the next week someone else $5 it doesn't necessarily mean the name is worth any of those figures. Closest way to really figure it out is put the name up for auction and see where it ends. If two people are willing to pay a certain price it is probably a good guide (though still going to be prone to a degree of error if it get a couple of people making very emotional bids).

Alot of what is seen in the aftermarket is low probability sales, eg the typical price I would sell a domain at is around $5000. Each year about 1% sells and about 99% does not sell. So my $5000 needs to be offset with the $0 for the 99%. My average really is about $50. If I put the $5000 names up for auction they'd get peanuts, but I'd have a pretty big bag of peanuts with the other 99% selling as well.

 

[domainexpert]

That can lead to:

- There is no relation between the real worth of domain name to what it is bought or sold for.
- This will lead to, we cannot compare our similar domain name in similar industry with past sales in the market as the new buyer may base their buy strategy on different grounds all together and may be willing to pay more or less depending on the need/want V/S domain name.

If the above is true than what do we really base the value of domain name on?

Is it using Google ad Words tools? Is is using the industry?

If yes, than is there any comparison system or tool in the market which tells the following:

X Searches per month in Y Industry will give Z Valuation to domain name?

 

[snoopy]

That can lead to:

- There is no relation between the real worth of domain name to what it is bought or sold for.

I don't see how it can lead to that, if it were true some freshly registered domains would be seen selling for hundreds of thousands and obviously valuable domains would regularly sell for peanuts.

Names are valued based on metics, people look at the market for the product and who they could sell it to. The price won't always fall into a neat relationship with other sales. Combine hundreds/thousands of sales and it will become more clear.

 

[Shane]

People should forget about what a domain is worth - because there will never be a general consensus on the value of a single domain.

You should worry more about what a domain is worth to you or to the specific person/company you are trying to sell it it.

Last year I paid mid $xx,xxx for an undeveloped domain. Would it have sold for that much on the drops? Would the punters on DNT value it at that much? I highly doubt it on both counts.

But when I did my figures that's how much it was worth to me, and since developing it the domain is paying for itself in terms of the new clients it's delivering my business.

So come on guys, put the handbags down and stop this bloody fighting, because we will NEVER all agree on the value of a domain.

 

[domainexpert]

Shane, you have cut the chase. You came straight to the point. Domain name is worth what a buyer is willing to pay for it. That is it.

For an example, I own CreditFacility.com.au & FeesandCharges.com.au and I think they both are decent in terms of $ Value.

However unless a buyer doesn't come along and pay the premium that I think it is worth - they remain $20 domain names - that is all.

 

[Shane]

Shane, you have cut the chase. You came straight to the point. Domain name is worth what a buyer is willing to pay for it. That is it.

That's not what I'm saying. More like the domain is worth to that person what they're willing to pay for it. And even then maybe not. Maybe they just overpaid after getting too exciting during an auction?

Just because you or I are willing to pay a certain amount doesn't mean that's what it's worth to everyone else.

Take investmentproperty.com.au as an example which has been discussed here recently. To me that domain is worth nowhere near $125k, but to the person who bought it, I guess it is...

 

[Chris.C]

Domainexpert... firstly, change your name.

Seriously, EVEN IF you were a "domain expert" (which you aren't) no one will take seriously with a domain like that.



80% of the guys worth listening to on these forums just use their actual name (the other 20% who know what they are talking about you will have to work out for yourself).



Secondly, you'd be very wise to listen to the above guys comments before you run out to buy more domains.

Thirdly, the truth is most people on these forums are "too nice" - they say things like "it's an OK domain" or "you'd need to develop it first" or "maybe if you found a retail end user" this is normally a sign that your domain isn't worth paying the renewal fee.

If someone doesn't say it's worth low $X,XXX to a retail buyer its almost certainly not even worth mid $XXX...

And if it's not worth mid $XXX it's not worth your time normally.

With ALL that said, I've seen worse domains put up for appraisal here on DNTrade, but I still don't see this domain ever getting you a return on your investment.

I rate it a 5.

For an example, I own CreditFacility.com.au & FeesandCharges.com.au and I think they both are decent in terms of $ Value.

What "you think" doesn't matter. The only thing that matters is what the "market does".

However unless a buyer doesn't come along and pay the premium that I think it is worth - they remain $20 domain names - that is all.

No they don't, they are a $20 sunk investment, and an ongoing $10/year liability (plus any sunk marketing efforts you put into them).

ie you will barely break even on this domain unless you sell it for $100+ let alone if you want to make a profit... and selling domains for $200+ isn't easy unless the thing basically sells itself and selling $200 domains is a DAMN hard way to make a living.

 

[Data Glasses]

I like dineout, not as keen on the other , good luck

 

[snoopy]

People should forget about what a domain is worth - because there will never be a general consensus on the value of a single domain.

You should worry more about what a domain is worth to you or to the specific person/company you are trying to sell it it.

Last year I paid mid $xx,xxx for an undeveloped domain. Would it have sold for that much on the drops? Would the punters on DNT value it at that much? I highly doubt it on both counts.

Personally I overpay for things all the time, but often I will think, "It is not worth that, but I need it so I'll pay", or "I can make a profit from it despite paying too much". On the other hand I know if I need to sell it I'm in for sharp loss.

If microsoft pays a million dollars for zune.com they would know full well it is not worth the price they are paying and I think the price someone pays is often not what they really think it is worth. It sometimes comes down to a unique item or something that might be time consuming to get another way, but that is not reflective of "value" in my view. It is just a price.

 

[chris]

Shane, you have cut the chase. You came straight to the point. Domain name is worth what a buyer is willing to pay for it. That is it.

For an example, I own CreditFacility.com.au & FeesandCharges.com.au and I think they both are decent in terms of $ Value.

However unless a buyer doesn't come along and pay the premium that I think it is worth - they remain $20 domain names - that is all.

I think the advice people are giving you is sound, there's plenty of great info here, but if you'd like some other points of reference that will help give you a better feel for domain name value take a look at these:

Domain Name Journal - The Industry News Magazine at DNJournal.com
DN Sale Price- Domain Name Sales Price and History

One of the problems I've seen is people investing heavily in the wrong kind of names. Your example names aren't bad, but they don't have the characteristics of a great name which are typically those that fetch a high price.

Cheers,
Chris

 

[domainexpert]

thank you Chris.