Need your advice here www.***.net

[bigroxtar]

I am looking to find out what people would be willing to actually pay for this site/domain. Here are the details:

its a three letter.net

gets around 1100 uniques per month

600 or so of those uniques from search engines including google, msn, yahoo, dogpile...

for the site's subject matter, its on the first page of results in msn and on the second page for yahoo and google.

I would sell the site which pulls in $5-10/day with PPC. Average is $5.61/day in Oct up from $4/day on Sept.

My gut tells me with 2 years revenue plus the name itself which holds value that I could ask

Let say $5 per day x 2 years = $3650 + $500 for name value = total $4150
(1.5 years rev would be 2740 + 500 = $3240)

That just seems high to me. Your thoughts?

big

 

[britishbulldog]

Let the market dictate the price ! Auction it on ebay and see what you get !

Different people will have different interpretations of value so its goto be the best way if youre not sure and who can be !

Market forces rule the world !

 

[hugegrowth]

5 times annual revenue would be fair. Hard
to say more without knowing what the name
is, but if it's three letters and relates well to
a subject people are searching for, it sounds good to me.
so $5 per day x 365 x 5 = $9,125

 

[bigroxtar]

5 times annual revenue would be fair. Hard
to say more without knowing what the name
is, but if it's three letters and relates well to
a subject people are searching for, it sounds good to me.
so $5 per day x 365 x 5 = $9,125

The three letters are irrelevant to the subject matter, although I am sure one could make up an acronym...

But 5 years income? There's no way I would pay that. I can see 2-2.5 years as the most realistic...

Thanks for the replies, others, thoughts?

big

 

[Rubber Duck]

Let the market dictate the price ! Auction it on ebay and see what you get !

Different people will have different interpretations of value so its goto be the best way if youre not sure and who can be !

Market forces rule the world !

I have tried that, gave some nice domains away for a pittance and later sold domains that would not shift for a high premium on the reserve. I would strong advise against Ebay.

I agree that market forces dictate domain value, but because domains are individual, they cannot reasonably sold as commodities. Time frame on Ebay is about a week. Reasonable time frame for matching domain to buyer is often 2-3 years. This means that the sell price on Ebay does not often reflect the full potential of a domain.

Similarly, if you try to sell them on forum like this, you are also likely to be disappointed. A domain is unlikely to be of much more value to one speculator than to another. If you track down an end user though, that is usually a totally different kettle of fish. This is because they value the domain in terms of a business, they know what it is for and appreciate its true value. A speculator by contrast wants to mark up by at least a factor of 2 or 3 and often a lot more, quote him more than about 10% of what you think it is really worth and the chances are he will start to focus on a new mark!

The question you need to ask is, if I sell a domain, can I replace it within my portfolio with a domain of equal calibre at a significantly lower price than the selll price? No doubt some speculators are remarkably adept at acquiring and reselling good domains. If you are not confident of your abilities in both these areas so that you can effectively exploit the cash generated, hold until you find a real buyer. Of course, you need to constantly monitor your portfolio for dead wood, and establish rigorous criteria for renewal.

Best Regards
Dave Wrixon

 

[bigroxtar]

Why did this get moved? Any moderators reading these? I thought this was clearly an appraisal issue. I can include the domain name if thats the reason. Mod-Please PM me.