Determining the true value of a domain name

There has been a lot of talk over which valuation tool is the best and what factors are used in generating the value of a domain name.  One of the, if not the, most important factors in determining the value of a domain name is the buyer and that cannot be predetermined.  Let’s take a closer look at a simple analogy to discover what I’m talking about with regard to value.

Product to use for analogy: 1 liter of bottled tap water
Buyer #1 offer: $1
Buyer #2 offer: $1,000

When looking at these offers for a mere bottle of tap water they seem ridiculous.  Why would Buyer #1 only be willing to offer $1 when Buyer #2 is offering $1,000?  Does Buyer #2 know some information about the bottle the tap water is stored in?  Is the bottle 400 years old and worth $100,000?  Let’s assume that the bottle containing the simple tap water is only worthless plastic that is recyclable.  Why is the liter of bottled tap water worth $1,000 now to Buyer #2?

Location of Buyer #1: Backyard swimming pool floating on a raft.
Location of Buyer #2: Middle of the desert.

There is no tool and will never be a tool that assesses value of a domain name that can gauge the true value as it cannot determine the motive of the buyer.  I recently sold a domain name that I had valued at $5,000 for only $2,000 and most domainers would not have given me $50 for it.  If you are selling a domain name, my advice is to first know the vertical market and secondly know the buyer and speculate a motive.

 

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Calculator.com.au and calculators.com.au SOLD

I sold calculator.com.au and calculators.com.au today.  I’ll be disclosing the deal next week and submitting it to Mr. Ron Jackson at DNJournal.com.au as the domain names of course qualify for making the cctld section and calculator.com.au could even jump up into the Top 20 of the week.  Last week I sold illawarra.com.au for $7k +gst and will be pushing that into the pool of sales as well.  Virtual Property Expert could be a global brand, but I do prefer the .au market and will keep it branded with virtualpropertyexpert.com.au.  I’m shooting my 2011 summary and 2012 forecast for virtual property and all that is relevant to the online space with domain names and where seo is heading.  Stay tuned… I will disclose the super savvy purchaser of calculator.com.au and calculators.com.au along with the prices next week!  Have a great weekend.

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Calculator.com.au – $11,100.00

Calculators.com.au – $6,900.00

OnlineApproval.com.au – $10,000.00

OnlineApproval.net.au – $2,000.00

 

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