Considering SEDO for brokering high value name.

[Domaininate]

Greetings,

I am still somewhat new to the domainer game and own what I believe to be a high value name.

I am currently using it for my established business (virtualworld.com), but would like to have a broker make an attempt to promote and sell it in the low to mid $xxx.xxx range.

That said, when I enter into a brokerage agreement with SEDO, is there anything preventing me from utilizing the domain as I do now until someone agrees to purchase it at my minimum reserve price during the time set for exclusive brokerage?

I read the TOS and the fees, but I worry that there is something that I'm missing.

 

[grcorp]

Hey, Domaininate (love the username!)

You may want to consider shopping it yourself instead of using a broker. Most brokers will charge at least 10%, costing you $xx,xxx off your sale price.

That said, let me ask you two questions...

1. On what basis do you think that this falls into the $xxx,xxx price range?

2. Why would somebody who has $xxx,xxx to invest want YOUR site, and not someone else's?

It's my experience that a rule of thumb valuation to get a ballpark figure is four years' worth of revenue.

To make math easy, let's assume you're expecting USD $200,000.

This, based on my formula, would require the site to net USD $50,000 a year, or ~$137 per day.

The only way you can justify the value of any domain name besides its keyword value is its revenue.

But to answer your question about whether or not Sedo is any good, I've used them to sell a domain before, and they're not bad. Still consider the above and factor that into your valuation...

 

[Onward]

Hey, Domaininate (love the username!)

You may want to consider shopping it yourself instead of using a broker. Most brokers will charge at least 10%, costing you $xx,xxx off your sale price.

That said, let me ask you two questions...

1. On what basis do you think that this falls into the $xxx,xxx price range?

2. Why would somebody who has $xxx,xxx to invest want YOUR site, and not someone else's?

It's my experience that a rule of thumb valuation to get a ballpark figure is four years' worth of revenue.

To make math easy, let's assume you're expecting USD $200,000.

This, based on my formula, would require the site to net USD $50,000 a year, or ~$137 per day.

The only way you can justify the value of any domain name besides its keyword value is its revenue.

But to answer your question about whether or not Sedo is any good, I've used them to sell a domain before, and they're not bad. Still consider the above and factor that into your valuation...

I would never use this evalution...unless it was a typo (which is gold for making cash )...not sure you can get 6 figs for it.... but do not consider the valuation based on parking rev...

 

[DC20]

There is only one way, that I see, that Sedo can hurt. That is making it public that the domain is for sale, which may (and this is just my own little theory) hurt your search engine rankings. Aside from that, I see no real down side to listing it on there while using it. As for if you will find a buyer there, it is possible and many people here have, including myself. If I wasn't too worried about the search engines (and they may not care, I just don't know), then I would list it, if I was in your position.

My $0.02,
DC20

 

[Domaininate]

Thanks for the tips.

I figured I might get the best 'take-home' dollar if I used an experienced broker.

That said, I see I do have options.