How To Value Domain Names And Websites

Domain names and websites are worth big $$$$. So how do you know if you are sitting on a goldmine or a pile of junk?

One of the questions I’m frequently asked is “What’s my domain worth” or “How much can I sell my website for?” It doesn’t matter if I’m at a dinner, conference or just picking up my kids from school. As soon as people find out that our company operates a domain name marketplace, I know what the next question is going to be. So what’s the answer? Well, that depends on your domains. Here are just a few examples of sales:

• PersonalLoans.com sold for $1,000,000
• Jackpot.com sold for $500,000
• Movies.xxx sold for $90,000
• Flu.ca sold for $45,000
• Hardware.com.au sold for AU $33,333

I’ve always believed that domain names and websites are no different than real-estate. In fact, domain name extensions are a lot like suburbs; you know that a 3 bedroom house in a particular suburb is worth a certain amount of money. I’ll give you an example; think of an exclusive suburb in your area. That suburb is the .com and will naturally command a higher price tag than its .net and .org counterparts. A country code extension such as .com.au or .ca will be a fraction of that price.

So, how do you determine a price? I’ve found the best way is to evaluate comparable sales in that niche. This method helps determine upper and lower limits of a price range. You can get this information from sources like IP Neighborhood or Domain Sales app (free).

Top 5 Rules For Buyers

1. Find out why they are selling. Is the seller being forced to sell their business?
2. Statistics can be faked. Don’t rely exclusively on them.
3. Should you buy or build it? How much would it cost to generate those backlinks and PR?
4. Look up comparable sales to give you an indication as to what you should pay.
5. Have a firm price in your head prior to the auction and be prepared to walk away.

Top 5 Rules For Sellers

1. Sell in the right marketplace. Selling to end users will command a higher price tag.
2. Sell at the right time. When it comes to auctions, the sales price will be determined by who is in the room.
3. Justify your price by listing comparable sales. e.g.: example.com sold for $xx,xxx last week.
4. Tell a story. Let people know why you are selling the domain or website.
5. Include anything that may help boost the sales price. This may include social media profiles, email lists, products, licensed software and graphics.

Marketing.com.au would like to thank Simon on behalf of our readers for sharing these useful tips and tricks