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Saturday, January 5th, 2008
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Wednesday, December 26th, 2007

You’ve decided on a domain name for your new business, and the domain is already registered and for sale. How much should you be willing to pay? This is becoming a common question, as so many quality domain names have already been taken. While there is no scientific method to determine a precise value for any domain name, there are some considerations that go into determining a reasonable ballpark value for that domain name you want. Please read on, and learn about some of the techniques professional domain appraisal companies utilize to ply their trade.Valuation Factors There are quite a few technical factors that go into determining what a domain name is worth, and there are differences of opinion as to the relative importance of the various factors. Here we will examine a number of commonly considered parameters in domain valuation. This collection is not necessarily meant to be all-inclusive, but is instead intended to give you a flavor of many of the fine points to consider.One of the most important considerations in valuing a domain name is the “TLD,” or Top Level Domain. This is the extension that appears at the end of the domain name, such as .com, .net, .org, etc. All other things being equal, a .com name will generally sell for about four times the otherwise equivalent domain in one of the other common global extensions, such as .net, .org, and .info. The .mobi extension, utilized for content to be delivered to mobile devices, is rapidly gaining popularity and value, especially for domain names suitable for such devices. Some country specific domains, such as .co.uk and .de (Germany) are very prestigious, and can also command high prices in certain cases. The .tv extension, later to hopefully be used in connection with internet enabled TV, results only occasionally in high value sales at current (until hardware, distribution, and media companies resolve their mutual “cut of the pie” concerns, there is likely to be little content to drive this market).
An extremely important consideration in the value of a domain name is the number of words it contains. Single “real word” domains (no misspellings or abbreviations), especially in easily monetizable internet industries, can be enormously valuable, particularly in the .com extension. Two word domains, again without misspellings or abbreviations, can also be quite valuable, as long as the domain name can easily be monetized, and the TLD is of high quality. Values really plunge when you get to three words or more.
Domains containing misspellings, abbreviations, hyphens, characters not on a standard keyboard, and other oddities often have very little value. Also, domains containing phrases that are trademarked may be worth nothing, as the trademark owner may be able to summarily confiscate the domain.
The extent to which a domain can be monetized has a major impact on its value. Domains in the sex, financial, and health industries often top the list in terms of high value sales. Domains related to industries that cannot easily generate revenue on the web will usually have little value.
Generic domains tend to be more valuable than non-generic ones. A generic domain is one that contains only real words (ones you can find in a dictionary), and has no contribution from proper names (first or last). Generic .com domain names in highly monetizable industries can be immensely valuable, and are for the most part very hard to obtain (without spending a lot of money!).
The number of letters in a domain name also affects its value. Three letter .com names can be quite valuable, even if they mean nothing. Four letter .com names usually need to be pronounceable to have value, but they need not necessarily be real words in the dictionary (cool sounding four letter .com names can be very brandable, even if they are made up). When you get to five letters or more, value is driven by quality of the word or words (generic vs. non-generic, monetizable vs. non- monetizable, etc.). Once you start getting over 8-9 letters, value tends to decrease a lot, unless the name is highly monetizable.
The extent to which a domain can be branded may be very important in determining value. Domain names that are easy to say and remember, easy to type in, highly reflective of predictable monetizable content, and/or generate a lot of “type-in” traffic (people typing your domain name directly into the address box in their browser rather than finding your domain via a search engine) are highly sought after, and may transact for significant sums.
The size and profitability of the market to which the domain name applies is also important. This directly impacts how easily the domain name can be monetized. Needless to say, products and services that do not lend themselves to e-commerce (directly, or indirectly through selling ad space) will most often have little value.
We could go on almost forever listing factors that impact the value of a domain, but the above gives you a sense of what to consider.
Where’s The Beef?
You’ll notice the discussion thus far has presented no magic formulas for computing the right price to pay for your new domain name. I would love to give you a cool formula with lots of neat math symbols, but sadly things aren’t that simple or elegant. In order to understand what you are going to have to pay, you need to learn a few things about the domain aftermarket.
First, there is way more supply than demand. This at first may sound encouraging, but unfortunately it isn’t. Most domain resellers are very inexperienced, and tend to price their domains way too high, and as a result drive buyers away. Haggling often results in little movement in the price.
Second, the really great names, one or two real word .com domains in high traffic, high margin internet sectors are essentially all bought up. They do sometimes become available for sale, but always at extravagant prices.
Third, you have to be very careful when buying non-generic domain names (domains containing words that are not in the dictionary, or domains containing words that are in the dictionary but combine to form an unusual phrase that the courts will not consider “public domain”). These domains may be protected by a trademark. In such cases, the trademark owner can sue for ownership in court, and quite possibly be able to confiscate your domain without remuneration.
The Bottom Line
At this point you’re probably wondering how much to pay for that domain on the aftermarket. As stated above, I can’t give you a precise formula. I can, however, give you some advice based on the above principles, via reference to contemporary sales history. The basic idea is that I can provide you with anticipated price ranges (rather broad ones) that seem to be well in sync with recent domain auction closings.
At the very top of the spectrum, you have one word, and very high quality two word, generic domains in easily monetizable internet sectors. These may sell for $100,000 USD or more, and will usually have .com extensions, although occasionally some will be in other high value TLD’s (such as .net, ,org, .info, .mobi, .co.uk, and .de). The very best of these domains may approach $10,000,000.
Global (non-country specific) TLD’s other than .com’s rarely sell for more than $100,000. The best of these, again one word and very high quality two word generic domains in easily monetizable internet sectors, usually sell for between $10,000 and $100,000, but sometimes may go as high as about $250,000. The best country specific extensions, mainly .co.uk and .de, lend themselves to the same kind of pricing as the non-.com global TLD’s ($10,000 - $100,000). Some excellent domains in the .eu (Europe), .se (Sweden), .tv (Tuvalu), and .ch (Switzerland) extensions are starting to command these prices too.
Every week, there are several dozen sales of .com domains in the $10,000 to $100,000 range. These tend to be one to two word generics, but not as easily monetizable as the ones that sell for over $100,000.
There is an active aftermarket in two to three word .com names that are long (10 letters or more) and sell for $2,000 to $10,000. These tend to be generic, although some non-generics may be found here as well. These domains will in general be harder to monetize than the more premium names, either due to industry (not a high profit internet sector) or scope (serve only a subset of a larger sector).
There is also a market in global TLD’s other than .com’s in the $2,500 to $10,000 range. .net’s and .mobi’s tend to dominate this space, although you will also find .org’s and .info’s here. These are generally one to two word generics that are less monetizable than their otherwise equivalent brethren that sell for more.
Certain country specific domains tend to sell in the $1,000 to $10,000 range. These tend to be one word or short two word generics in the most attractive country extensions (especially .co.uk, .de, .eu, and .tv). Needless to say, these are not as monetizable as their more premium brethren.
If the domain you want does not fall into one of the above categories, you should think long and hard before spending more than $2,000 or so. Admittedly, there will be times when purchasing a particular non-generic name may be unavoidable (e.g., you already have an offline business name which is not trademarked, and need the corresponding domain for your online presence). The key point here is that absent proof of pre-existing heavy traffic, and/or profits from an already deployed web site at the domain, these names are just not that valuable.
In Closing
My hope is that this article has helped you to become a more educated domain buyer. The main takeaway should be that unless you have a truly urgent need to obtain a specific domain, you should use common sense principles and not overpay. Remember, in spite of the fact that so many good names are taken, most domains just sit and wait at aftermarkets like Sedo and Afternic because of the vast supply overhang. If the owner of the domain you want will not sell for a reasonable price, try to be creative and find alternatives, like using a different TLD, pluralizing, reordering the phrase words, etc.
The internet domain market will never lend itself to discounted cash flow pricing like financial securities, and the value of a domain is really nothing more than what the market will bear. Ultimately, values are determined by sale prices of similar domains. This article has hopefully armed you with that knowledge so you can negotiate with confidence.
Stewart Engelman
Posted in Domain Names | 1 Comment »
Friday, December 21st, 2007
Finding the dream domain name for your website or small business
can be like finding a needle in a haystack on the internet.New websites and businesses are popping up in niche categories all
over the web, Trying to register the perfect domain name for yourself
without any tools is very frustrating, because you can’t possibly figure
out all the keyword combinations in your head.
DomainPunch
Find and search though expired domains ranked with Alexa, Dictionary, Page Rank, Yahoo Backlinks and MSN Backlinks
Dictionary Domains
Some of the most valuable and sought after expired domains are
dictionary domains. These deleted domains are all words that
can be found in the dictionary. This makes them very broad in
scope and much more appealing to a wider audience of potential
buyers and developers. These domains tend to be some of the
easiest to sell simply due to their memorability.
Domains with Backlinks
Registering expired domain names that have existing links from
other sites already indexed in the major search engines are great
additions to any domain name portfolio. These dropped domains will
already be receiving hits from these existing backlinks from the
day you register them. Picking up domains with existing traffic
is a perfect way to kick start a new site.
Domains with Page Rank
Targeting deleted domain names that already have an existing
Google Page Rank is a huge business. These are some of the
hardets domains to grab from expired lists as there are teams
of professional drop catchers focussed on nabbing the domains
the minute they become available. If you want a chance at one
of these, you should probably backorder it.
Oddity Software
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Monday, December 10th, 2007
Posted in Domain Names | 1 Comment »
Monday, December 3rd, 2007
Would you like to be that lucky person who sells their domain for thousands or millions of dollars? It is possible to find quality domains and resell them for huge amounts of money. The time is ripe for buying top domains and selling them. Now that the Internet Boom is behind us, valuable names expire everyday. The best way to find these domains is to use services on the Internet such as DomainsBot to weed out the bad names. Or just check out Hot Lists on sites like SnapNames or Pool. What makes a “good” domain name? Usually short, single word domains and 2-3 letter .coms, .nets, and .orgs are the best. The more specific the better. These can be hard to come by but when you find them, you can almost guarantee that you can make good money from them. Once you have purchased a nice domain name, get a good appraisal of the name to get an idea of the possible worth. In order to sell your newly appraised name, you have to find a buyer. Here are your basic options for selling your domain name in a nutshell:1. Sell it on Ebay
This is the easiest and quickest way to sell your domain name. There are several tricks to landing a good sale at Ebay. One is, start your price low. People want a bargain. Once you have received an initial bid, it will draw peoples attention to your name and create more bids. You may want to set a reserve price if you want to make sure you get X amount of dollars. When selling your domain on Ebay, make sure your domain name is in the title of the description. Also, include an appraisal to show to possible buyers the value of the domain. Keep your description short, clean, and really emphasize how important and rare your domain is. For example, if your domain is 3 letters and ends in “I”, stress how most 3 letter domains that are highly valuable end in “I” because it usually stands for “Incorporated”. If it ends in “E” it could stand for “Enterprise”. A little bit of marketing savvy can go a long way. 2. Sell it on Domain SitesThe only sites you should even consider putting your name up for sale is on Ebay, Afternic, or Sedo. These are the most popular and where some huge sales have taken place. The only downside is that there are high numbers of domains already for sale and usually the site will get a commission of something around 10%. There also may be a small fee to join. You may also have luck selling it on forums such as DomainState. The prices of sales there seem to be lower.
Avoid stolen domains.
3. Contact Large BusinessesThis approach takes some time and patience. Let’s say you have acquired a great domain name that would work great for any business in the field of the stock market. You may want to locate some of the bigger sites or businesses and make an offer to sell your domain name. Make sure the name you own doesn’t have any elements that are already trademarked because you may be forced to give up the name. You may want to go on the Internet and look up current websites that deal with stocks and find ones that don’t have the greatest domain names. Make offers to these sites stating how your domain is much better and will HELP them. If you get a company to bite, the rewards are usually very generous!
Avoid buying domains that are copyright protected, You may end up losing the domain.
There are Millions of domains out there. Use your creativity and you will be able to come up with some gems. In summary, selling domains for high amounts of cash depends on two key elements.
First you must have a quality domain, one that doesn’t have numbers or isn’t too long. It must be clear and easily recognizable. “.com” is the best, but even domains such as the “.us” are gaining popularity. The second key is Marketing, Marketing, Marketing! I can’t stress that enough. You have to create a good reason for someone to buy your domain. How can THEY benefit from it. When these two steps are fulfilled, a sale is almost guaranteed!
You can also read the post 50 expired domain names
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Saturday, December 1st, 2007
Why Purchase Domain a Name when you can get a Free Domain name with your hosting plan.
There are a number of ways and locations to purchase domain names, and research and knowledge are keys to making the right decision. Therefore, it is important to know a number of things when purchasing a domain name.
1) Accredited Registrars All domain names must be sold by accredited Registrars certified to do so by ICANN. Registrars are required to follow the procedures set forth by ICANN, giving consumers a dispute organization in the event one is needed. Registars are required to pay a fee to ICANN for the purchase of each domain name. One of the areas that separate registars is the price charged to the consumer. Domain name registration varies from $4.99 at the low end to $65.00 depending on which registrar you choose. Services offered with domain name purchases also vary depending on the registrar selected, such as DNS, forwarding, email, hosting and parked pages.The services offered are just as important to purchasing a domain names as the name itself. If you own a .com domain name and purchase the .net name, then free forwarding would be a great deal. If you want to point the domain name by DNS then not only is free DNS pointing required, but if you have no experience with DNS the support to set up DNS records will also be required. All registrars are not created equal and some sell low cost domains but with limited support.When selecting a registrar look at your short term and long term needs, whether it is one domain or multiple domains. Although a low cost looks good up front, do your research and make sure all your needs will be filled. When looking for a domain contact the registrar and ask questions like: Do you have 24/7 tech support, does your support cover DNS record set up, advance record set up, what will you be expected to do and what will they do for you.
2) Domain Resellers
Resellers are partners of accredited registrars, reselling their products and services, but are not accredited to sell domain names. When purchasing a domain name from a reseller, be prepared to be patient. Most offer very little to no technical support or rely on the accredited registrar for support.
There are also times the reseller goes out of business without notifying the domain owner leaving them with little knowledge of who to contact if the domain requires DNS record changes or even simple renewals.
Domain resellers are the most unknown group of domain sellers on the internet. When searching for a registrar look at the site you are on, check to see if they list themselves as an ICANN accredited registrar. Domain sellers not displaying this are almost guaranteed to be resellers. Check icann.org and review the list of accredited registrars to see if the company you are looking to purchase your domain from is accredited or not.
3) Domain Deals
Searching the Internet for a registrar will lead a surfer to many results. Beware of some of the results and domain gimmicks. Yahoo offers domains for a low price with their hosting, but is not an accredited registrar or a reseller. Yahoo uses a third party company that is an accredited registrar. Most consumers do read the Terms of Service when making a domain purchase, and doing so will allow you to see that Yahoo states that they assist you in purchasing your low cost domain.
Unless you read the Terms of Service, knowing that your domain will be registered somewhere else could lead to long term issues. These issues include domain renewal notifications or confusions when wanting to transfer the domain to a new registrar.
Check out all domain offers, read the fine print and make sure you know who your are really dealing with.
4) Domain Protection?
When you purchase a domain it is yours to use for the period your selected to register. Once purchased many registrars automatically put on a service to prevent your domain from being transferred to someone or somewhere else without your permission. This service has different names depending on where your domain is registered, but may be called domain lock and domain protect.
Domain protection is a valuable service and should always be left on unless you intend to transfer your domain to a new registrar. Never allow anyone to tell you to turn off your domain protection for any reason but to transfer. Many times a hosting company or web designer will tell a client to turn off the lock so they can set up services, but this is not required to set up any service.
5) Additional Domain Services
When going through your purchase flow you will be offered a number of additional services, none of which are required. Web hosting will be needed if you do not have your own server, but if you just plan on parking the domain or not using it then why get hosting. Email can be used for your domain with many Internet Service Providers like Verizon. Check with your provider and ask them if you can set up your domain and receive email using your current service. If so there is no need to buy the email service.
Domain registration with a particular registrar does not mean you must use all or any of the services they offer. You can purchase a domain with a registrar and host with a different company.
Private Registration is the only service that must be purchased form your registrar, this product will remove your personal information from the WHOIS database and make ownership of your domain anonymous.
Written by John Kinney
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