Stop messing with me!

Discussion in 'Web Hosting and Domain Names' started by Vaelor, Oct 24, 2005.

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  1. zone file

    zone file New Member

    Messages:
    3
    Parsing secondary market sales data?

    Hey there,

    I agree -- the lack of transparency regarding domain sales in the secondary market makes valuation and negotiation tricky. That's why so many of those offering appraisal refuse to disclose their methodology for valuation -- more often than not, the emperor has no clothes.

    There is some excellent information on secondary sales of domain names and value over at DomainsBot Labs (my client) at http://www.domainsbot.com/labs/stats.aspx. "Domain Stats" features studies on how things like length, number of keywords, and parts of speech affect domain name values in the secondary market. "Word trends" shows how many domains with certain keywords in them have been registered over a period of time, which can show that terms in your domain are gaining popularity (for example, if you were trying to sell a domain with the term "podcasting" in it). The word cloud is also cool *and* useful -- shows you a cloud of words most often used in existing domain names in conjunction with whatever term you type in. For example, if you type in "blog," you see a cloud of words most often used in registered domains that have the word "blog" in them.

    The DomainsBot tools, in conjunction with other information, can help you give yourself a self-appraisal of your domains. Here's a way to do a very quick appraisal.

    First, write down what you *think* the domain is worth, what you would ask for if someone asked you right now for your asking price. Of course, you're making this number up in a vaccuum since market value is always what the market is willing to bear, right? But this exercise will help you hone in on that market value.

    If the domain is active, and if it is being used in a PPC program, look at how much it is making now while also taking into consideration how much effort you've put into the domain. For example:

    1. Keyword use on the site
    2. Search engine rankings
    3. Length of registration (Google and others still consider longer registration lengths more "legitimate" when tabulating rankings)
    4. Optimization of the PPC page. Do you use the template that your PPC provider offers, or have you added your own content?

    If you've done none or little of the above but you still have some traffic, you can say, "Hey, look at the traffic I'm getting for doing nothing!" In essence, you are offering a fixer-upper domain and you can extrapolate about what those embellishments would add to the value. If you have done some work, you can use that as solid evidence as to the worth of the domain.

    Then look what kind of domain it is. . . (here's where the DomainsBot stats come in handy)

    1. Extension -- .com, .net, etc.
    2. Hyphens or numbers -- these are often considered to diminish the value of a domain
    3. Length of the domain and keyword popularity

    Be prepared to offer your buyer as much evidence as you can as to the value of your domain. Some buyers won't know what half of it means, and some will not care because they will have already made up their minds as to what they think of the value. Throwing out such info won't be appropriate for most small sales, but once you do it for one domain, it's fast to do, and you will have a clearer idea of the market value of your domains.

    I hope this helps! Good luck!

    rebecca
    http://www.domainsbot.com
     
  2. zone file

    zone file New Member

    Messages:
    3
    PS Sedo is a great company and I've had good luck selling names with them. Good luck!
     
  3. BaldEagle

    BaldEagle New Member

    Messages:
    38
    This may not be of any benefit but it seemed to address your dilemma (except for the non-offer offers). This is an excerpt and the whole thing can be read at http://content.websitegear.com/article/sell_website.htm.

    A Site's Value to Buyers:

    These days most websites are valued by the number of visitors they attract. One common yard stick is your domain name is valued at $10 to $30 per hit per day. If 1,000 people land on your front page each day, your domain could be worth $10,000 to $30,000. Another optimistic way of looking at domain values is each unique visitor you get over the course of a month is worth $250. If the visitor clicks to a second page on your site, her presence is worth $500. By this measure, a site getting only 10 hits per day could go for $15,000. This strategy is a lot like the way traditional businesses have always been sold. The more customers a store has, the more it is worth to a buyer. That is a pretty solid way to value domains. It is a model that is likely to be around for a long time to come.

    Here are some of the main questions a typical buyer will ask him or herself when considering whether or not a website is worth purchasing – and at what price:

    1. Is the site making any money? Is there proof?
    2. What is the potential for future profits?
    3. Does the site have traffic? Is there proof?
    4. Is the site attractive/well designed? Is it functional and user friendly?
    5. When was the domain name registered?
    6. How is the site ranked with the major search engines?
    7. What does is take to maintain the site? i.e. hosting fees, content addition, promotion, etc.
    8. Why does the owner want to sell the website?
    BaldEagle
     
  4. Arkette

    Arkette New Member

    Messages:
    80
    Personaly I think the whole idea of domain parking for profit STINKS!
     
  5. ian

    ian Administrator Staff Member

    Messages:
    2,153
    Domain Parking is a business like any other. As much as it is annoying to go to logical type in domains, and land at parking pages, I think it is a legitimate business, besides most people find websites via search engine results,so it is not so bad.
     
  6. Arkette

    Arkette New Member

    Messages:
    80
    A business provides products or services. What service to do these people provide? Someone who demands money from you for walking down a public street is called a mugger not a businessman.
     
  7. ian

    ian Administrator Staff Member

    Messages:
    2,153
    A domain is not akin to a street, it is more like a shop, and they dont charge people to visit their sites with parking pages, it is free, so your analogy is not correct.
     
  8. Vaelor

    Vaelor New Member

    Messages:
    111
    Thanks guys - I haven't been able to log in here much lately (even had to reset my password just now, wtf?!), but this thread is on my permanent bookmarks list! I'm selling ALL my unwanted domains via Sedo now, it's a win/win because they promote them better than I ever could, and I get paid click-thru commissions from the "This domain is for sale" parked pages in the meantime.

    I have to say, I agree with Ian on that count. As much I find parked pages in place of legitimate websites extremely annoying, I see that they are a legitimate business. And they don't even come into my Top 10 most annoying internet concepts, like pop-ups, Flash animated web banners, MIDI music on webpages, or good ol' spam. Personally, I'd never buy a domain just to park it and profit off it, but that's just me. I do appreciate that there's a way I can benefit from having these domains sitting here while I wait for somebody to make me an offer - ANY offer - though!!

    (Also, of note, when you park at Sedo, they keep stats of your hits, so potential buyers can see right there how much traffic the domain gets - no more bloody annoying "How many hits/month do you get?" emails! =P)

    Anyways, thanks once again for all the feedback and info on domain value and evaluation. Will be keeping this thread bookmarked and looking into how I can use these resources to increase my sales. Cheers!
     

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