Keys for Determining Value

[triumph]

What are your primary keys when you are trying to determine value for a domain. I know the only way to make it long-term speculating on domains is to hone your own sense and value. Relying on public appraisals is only going to get you fleeced as everyone else has an agenda.

[vicki2]

Good question.

One of the things I see here is a distinct difference of opinion in speculating on names alone. A person will see potential in a domain name while another thinks its worthless, but that's all a perspective depending on your demographics, etc. Wouldn't you think?

[llegent]

emmm...it really spind off some thoughts in me. Well, for me, I would try to perform some research some current trend and look out for latest development on internet world. Hopefully, by following up closely especially on tachnology and business related issues, I could be able to spot some good nice domains with huge return potential

[Grace]

Does an auction tell you any valuable information about the domain you are buying?

[triumph]

Grace Wrote:Does an auction tell you any valuable information about the domain you are buying?

What do you mean? I would think you would want to have a firm idea of a domain's value before bidding on it. If you do not, you are likely to overpay for it.

[andreww38]

hi, i was curious.
is it worth building a domain to PR4 or PR5 before selling it?

i was thinking it'd increase the value.
but would owners be willing to pay for it?
If so, what kinda premium might you get?

cos a $6 domain going for $190 as is, might get ??? with a PR5 attached to it?

[llegent]

There has been some talks about forgetting and ignoring "the little green bar - google PR" and just concentrate on building your site up, boosting its traffic further. But hey, lets face it, as google is currently the big boy, it is truly hard to ignore the PR.

So, it is still worth the effort in trying to build up a site's PR to at least PR5 and above. If you browse thru ebay, there has been auctions on domains with PR4 and above. Often, these auction could get intense biding when the PR goes higher.

Well, people are still willing to buy a plain domain with PR5 attached to it!:eek:

[triumph]

andreww38 Wrote:hi, i was curious.
is it worth building a domain to PR4 or PR5 before selling it?

i was thinking it'd increase the value.
but would owners be willing to pay for it?
If so, what kinda premium might you get?

cos a $6 domain going for $190 as is, might get ??? with a PR5 attached to it?

Yes and no. For domain speculators, PR does not hold much value. For people in the PR game it is worth a lot. You need to target the appropriate market when you sell it because you will get hugely different bids in those two segments depending on the site.

[Grace]

When you get a house appraised you can get a difference of appraisals as well. So maybe you could apply that to domain appraisals. Do those vary greatly or not?

[andreww38]

btw, you can always do keyword research and check the searches at http://www.overture.com and the results at google.

when you get the RS ratio (ie. results divded by searches), anything close to a one is good. (high demand (by searches) compared to low supply (by results)).

i've attempted to add more qualitative dimensions to the equation though and put some pointers in my blog post "Internet Marketing Trendspotting: A Quick Guide to making a killing on Niches"