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Value Of A Revenue Producing Domain Name
By Bruce Clement
This is a response I gave on a forum to the question "I have a portfolio of parked domains making 10K per year, what should I sell them for" The value of your portfolio depends on who you are selling it to. If it's an experienced investor in parked domains they should have their own view of what multiplier of the revenue they are prepared to pay. If it's to someone that wants the name or its traffic for some other purpose they may have a different view of the value of the domain to them. When I'm offering to sell a domain with good revenue to a non-domainer I explain the site's current traffic profile and the revenue it's generating me. Then I explain that for me the value of the domain is 5 years profit (revenue less registration renewals) and make it clear that this figure is my opening offer. So in that scenario I'd ask a little under $50K and I'd settle for a lower value. If I really wanted to make the sale now I would probably accept somewhere between 30 and 40. Don't go any lower than three years revenue, unless you suspect it will tail off, for example if it's related to a current fad. On the other hand if it's a small group of domains that are producing that amount of revenue it is likely be composed of names with attributes that extend well beyond the mere parking revenue it generates. You owe it to yourself to seek other forms of valuation or get a proper appraisal to ensure that you don't sell yourself short.
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Contributor's Note
Bruce Clement is a keen domain name investor and commentator. You are free to copy this article under the http://creativecommons.org/licenses/by-nd/3.0/ licence as long as you publish it unchanged and link either to Bruce's blog Domaining .nz at http://domainingnz.blogspot.com/ or to his hub site at http://www.clement.co.nz/
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This intel first appeared on: http://www.namepros.com/parking-and-traffic-monetization/268515-pri...
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PLEASE VISIT THE CONTRIBUTOR'S WEBSITE
Domaining .NZ
News and comment by an active .nz investor
domainingnz.blogspot.com
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