| There are many ways to value a domain name, but in this article we will look at the simplest way to obtain a fair value estimate. The easiest way to value a domain name is to look at the traffic figures for the particular name. Unfortunately, because of the internet savvy consumer, we have also become privy to many marketing techniques which work to artificially inflate these numbers. I therefore think it is vital for anyone considering buying a domain name from a domain reseller to consider asking for some sort of proof of overall traffic figures. This will not only give a marketer an idea of the actual value of their new website, but will also give them some idea of whether or not the business is likely to profit in the future. The domain name value can be obtained from many places, but my favourite way to calculate it is to add up the domain name traffic figures for each individual domain, and then multiply by 10 to give a fair marketeers estimate of overall domain traffic. Another method to obtain a domain name value is to buy the domain name from a marketer and then let the reseller/barter take over selling it on. This has the distinct advantage of allowing you to keep 100% of the profits, although of course there is also the potential risk that the marketer may decide to move on and leave you without your hard earned cash. However, if you can buy a domain name and then resell it yourself, this will almost always gain you a better return. Another way of estimating the value of a domain name is to actually purchase one and perform the necessary market research to determine its worth. This is obviously more expensive, but you will have the luxury of purchasing a domain name directly from the owner - with absolutely no need for an intermediary! There are many ways to do this, but my favourite way is to buy a domain name from a large domain registrar such as GoDaddy, who offer one of the best names in the industry. Then check that the name is available in the domain name databases, and search their prices against your own list of domain names. This is a simple way of finding a good domain name value. The other method of obtaining an estimation of value is to search around on auction sites. Auction sites such as eBay often have 'buy it now' features. These allow you to place a bid for a domain name at a set price. You then wait until the auction is over, and if your bid wins you the domain name at the auctioned price, you've won! It's a great way of finding a domain name at a bargain price, but be careful that you do not pay too much for it, or else you may end up with an unwanted domain name that nobody wants. A third method of estimating the value of a domain name is to look around on trading sites, such as the stock exchange. Here you can search for domain names on the particular trading site that you are interested in, and see if they are offering domain name auctions. If there are many domain name auctions available, and most likely they are, you can use this method to obtain a general idea of how popular the domain is. If the domain name is popular, then chances are it will also be in high demand on other trading sites, and therefore, sell for a higher price on other sites. Estimating domain name value from these auctions is possible, but you must be extremely careful, and do not pay too much for a name just because it sells for a high price. There are also several marketplaces where you can obtain good estimates of domain name values. These areplaces such as GoDaddy, and NameCheap. These places offer an instant evaluation of how valuable a domain name is for a given price, based on the number of available domain names. They also offer a list of common misspellings of the domain name, which allows you to gauge how potential customers are going to be confused when trying to find your website. There are two other methods you can use for obtaining good estimates of domain name value. The first is to purchase several domain names in different name categories, and then put them in an auction themselves. Although this method may seem like an expensive way to obtain several domain names, you can rest assured that each domain name will be evaluated based on its level of popularity before being sold to a willing buyer. The second method, which is slightly more involved, involves using a domain name registrar to acquire the domain name you want, and then purchasing the dot com top-level domain rights for each one individually. This method may seem like a lot of work, but in the long run it can save you a lot of money on marketing costs. The major advantage to this method is that you can control every aspect of your campaign. Each domain name is treated as its own distinct product in your advertising campaign. This can result in a higher return on investment, especially if you have a great amount of traffic coming to your web site. Using the appropriate tools to estimate the value of a domain name can help you get an exact price for each one, allowing you to spend your budget where it is most important - on high-quality traffic. |
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