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Tnooz “Travel domains going for (not exactly) a song”

February 1st, 2014 Comments off

Linda Fox wrote a piece today on Tnooz.com about Tour.com being put up for sale for $3million.

Tnooz is a global provider of news, analysis, commentary, education, data and business services to the travel, tourism and hospitality industry. It is the leading voice to the industry for all areas related to travel technology.  So travel related domains are something they might like to write about from time to time.
Ms. Fox took a look at the history of the domain, she left off a 1 when saying the domain was 7 years old, it is actually 17 years old this year. She also wondered about the timing with .Tour coming down the line.
She also took a look at some travel related names over the last few years. From the article:

In the past three years, according to information from domain specialist Sedo, a number of premium travel domain sales have taken place:

  • Jerusalem.com – $510,000
  • Visitstockholm.com – $70,000
  • wellnessfinder.com – Euro 300,000
  • sommerhus.dk (Danish summer house rentals) – Euro 87,500
  • gruppenreisen.de (group travel in German) – Euro 59,500
  • hoteles.es  (hotels in Spanish) – Euro 275,000
  • xinjian.com (a region of China) –  $55,000

The company adds that there are more affordable domain such as visiteastlondon, which was sold for $490.

A spokesperson says interest in domain names is high from the travel industry because of increasing numbers of specific travel experiences.

VisitStockholm.com was sold by Mr. Berkens

Schwartz Sells eBet.com For $1,350,000: 5 Online Appraisal Services Value it From $40K to $55

October 10th, 2013 Comments off

I thought it would be interesting to see what the automated appraisal services had to say about the value of the domain king, Rick Schwartz $1,350,000 Million dollar sale of eBet.com

If your a frequent reader of thedomains.com you know I’m not a huge fan of the online appraisal services but pretty surprised when I checked this domain today and found only 2 of 5 gave it a value in the five figures, not great for a 7 figure domain.

I think a fair conclusion would be based on these services Rick did pretty well for himself and that if you selling domain names based off of these services you might be leaving just a little bit of cash on the table.

Here is Estibot valuation of eBet.com

 

beta

 

 

Domain Appraisal – ebet.com

Domain Details:
  Domain: ebet.com
  SLD: ebet
  Keywords:
ebet
    [ change ]
  Category: Other — Generic 4-letter
Appraisal Overview:
  EstiBot Value: $ 12,000 USD     [ currency ]
» Help me BUY this domain
» Help me SELL this domain

.

Before you get on Estibot.com about their appraisal check out the valuation we got from DomainIndex.com:

domainindex_logo_s

ebet.com

Domain Apprised $55 USD

06-Nov-1996

17 year(s)

appraisal accuracy 80%

 

Here is the appraisal from  DomainWorth.com

 

bear_bull

 

 

 

 

Appraised market value as of 10/10/2013 for ebet.com: $6,809

Market Low:$5,380

Market High:$11,888

Domain Details

Best Split: ebet

Domain Length: 4

Creation Date: 11/6/1996

Traffic Ranking

Alexa Rank: 23,547,973

Visits Potential: 27

Alexa Sites Linking In: 1

Moz Domain Authority: 7

Moz Links: 0

AGDPPP: $43,426

Search Engine Searches

Monthly Searches Exact: 5,400

Monthly Searches Broad: 60,500

CPC Exact: $0.7

CPC Broad: $2.7

Advertiser Competition Exact: 1

Advertiser Competition Broad: 4

Similarity & Popularity

Around COM Domains: 16,871

In Title Web Pages: 138,000

Influential Domains Visits Potential: 0

Estimated Search Results: 1,650,000

Here is the appraisal value by urlappraisal.net

 

Screen Shot 2013-10-10 at 4.33.58 PM

 

 

 

 

 

 

 

 

 

 

 

DomainMongrel.com

 

 

Free Instant Domain Name Appraisal Service. The Best Online Domain Valuation Tool!

 

The Domain ebet.com is valued at: $3,849.91

CircleId Post Rips The Domain Name IDNX Pricing Index

August 14th, 2013 Comments off

Alex Tajirian, CEO of DomainMart in a post on CircleID.com just ripped into the IDNX domain name index backed by Thies Lindenthal and Sedo.

“The index is intended to be a benchmark for domain owners and investors. “

“But it’s out of line with other studies and the common sense of how a market operates. A much better barometer to follow is average prices for groups of domain names with similar characteristics.”

“Using a single index would have dire consequences. ”

“Other problems with Lindenthal’s single price index:

1. It’s based on information taken from just one market, Sedo. But other studies reveal that sale prices for similar names vary across marketplaces.

2. The reported index-price correlation with the NASDAQ 100 is grossly misleading. Why would prices of domain names of large companies move in synch with those of small and backdoor domains! One would expect that different groups of domain names would be correlated with different indexes depending on their risk characteristics.

3. The methodology is not robust to the presence of outliers in domain name price data.

4. The model does not identify risk factors driving domain name prices, such as the number of a domain’s key word searches, the cost per click (CPC) of the key word, the popularity of the key word as shown by uses of it on Web sites, etc.

5. The model ignores evidence of a nonlinear relationship between prices and the explanatory variables.”"

Of course we have spoken at TheDomains.com about the inaccuracy of automated models to value domains in the past and feel there is no substitute for the human element.

Someone by virtue of having a huge amount of experience in buying and selling domain names over the years.  Extremely long term domain investors  have developed a gut feel for what a domain name is worth.

We saw just the other day once again basically 50% of all domains that sell at Sedo.com sell for $500 or less and only 5% sell for $5,000 or more.

Over at MostWantedDomains.com we have a $2,500 stated minimum but in actuality rarely sell a domain for less than $5,000 and our average sale is closer to over $20K than to $500.

There are other large portfolio owners like Mr Schilling, Mr Schwartz, the Ham Brothers, and Scott Day just to mention a few who wouldn’t even bother to respond to a $500 offer much less sell a domain name for anything under five figures if not six figures.…

FAIL: DomainIndex.com Releases 8 Million Appraisals For New gTLD’s Domain Names

June 26th, 2013 Comments off

DomainIndex.com has released 8 Million Appraisals for new gTLD domain names those including trademarks and those with just generic terms and the results are pretty interesting.

Mt first observation is that of the new gTLD domain names with the highest valuation, only 1 non-trademarked term has a value in the six figures, Car.Insurance (which may not even be available to be registered depending on which applicant wins the .insurance new gTLD) at $125,000

All other new gTLD domain names are apprised in the five figures by DomainIndex.com

My second observation of the highest valued domain names include domain names in some extensions that have not even been applied for, as new gTLD’s such as the third highest valued domain, hand.bags which DomainIndex places a value of $85,935 on. The problem is no one has applied for .Bags; likewise credit.card which has a value of over $78,000 no one applied to operate a .Card new gTLD, .Cards yes, .Card no, DomainIndex.com gives a value of $84,000 to Hotels.Europe another non-existent new gTLD which would not even be allowed to be applied for under the ICANN Applicant Guidebook.  Also Included erronously are valuations for other extensions that have not been applied for including .Chicago, .houston, .usa and .angeles (which gets you Los.Angeles).

On the other hand new gTLD that have actually been applied for are seemingly not supported by DomainIndex and quiries on valuations returns errors like .NYC for example as our inquiry for hotels.nyc returned this message

We are sorry  hotels.nyc is invalid or unsupported domain name.

Likewise a inquiry for the valution of the domain name night.club returned the same message:

We are sorry night.club is invalid or unsupported domain name

According to DomainIndex.com the value  the keyword, traffic to the domain name are among the factors they used to derive valuation.  However DomainIndex.com seems to give the most valuation to domain hacks like the above non-existent hand.bags, credit.card (of course credit.cards would be a high value.

I know new gTLD registries are not going to be happy with these valuations as many are expecting multiple deals into the six figures for their super premium domain names.

Here are the highest values placed by DomainIndex in general I would place a GIANT FAIL on this attempt:

health.insurance $91,500
gmail.email $86,430
hand.bags $85,935
hotels.paris $85,620
paypal.card $85,027
hotmail.email $85,026
hotels.directory $84,858
hotels.usa $84,650
hotels.europe $84,608
hotels.discount $84,569
health.care $79,125
credit.card $78,390
ebay.shop $75,040
craigs.list $65,003
web.hosting $60,500
yahoo.sport $59,620
app.store $58,770
amazon.usa $58,240
yahoo.sports $56,780
yahoo.chat $56,210
amazon.coupons $56,170
amazon.deals $55,394
amazon.store $55,145
yahoo.directory $55,124
amazon.shop $55,072
amazon.movies $55,030
amazon.shops $55,019
car.rental $49,400
business.cards $48,300
used.cars $42,121
tele.vision $41,818
home.insurance $38,600
tele.phone $38,518
teleph.one $38,203
web.sites $38,000
home.page $36,360
flowers.online $36,230
los.angeles $34,640
web.cam $34,200
flowers.shop $33,490
flowers.direct $33,271
flowers.usa $33,144
auto.insurance $32,950
medi.care $32,882
life.insurance $32,600
home.security $30,910
affiliate.program $30,650
hotel.deals $30,360
frankfurt.airport $30,347
general.hospital $30,311
hotel.california $29,950
web.server $29,900
home.loan $29,330
hotel.berlin $29,320
home.office $29,290
home.care $28,840
hotel.management $28,383
home.work $28,350
marketing.today $28,110
home.land $28,024
home.business $27,914
hotel.jobs $27,737
home.finance $27,723
hotel.finder $27,711
home.repair $27,706
hotel.miami $27,701
hotel.canada $27,689
hotel.rates $27,686
hotel.search $27,686
hotel.toronto $27,671
hotel.chicago $27,635
hotel.discount $27,626
home.finder $27,615
home.credit $27,605
hotel.dallas $27,588
hotel.cafe $27,587
hotel.nyc $27,584
hotel.express $27,572
hotel.direct $27,572
insurance.usa $27,570
home.massage $27,569
home.education $27,569
home.schools $27,569
hotel.manager $27,568
hotel.spain $27,542
hotel.vegas $27,539
home.shop $27,539
hotel.web $27,538
home.properties $27,532
hotel.inn $27,532
hotel.texas $27,526
hotel.development $27,523
home.pizza $27,519
home.university $27,517
hotel.italy $27,502
home.dallas $27,501
pac.man $27,425
cheap.hotels $27,239
watch.movies $27,100
new.york $26,500
greatwallof.china $26,101
web.site $26,000
las.vegas $25,569
web.master $25,220
web.city $25,000
insurance.rates $24,900
web.agency $24,830
loans.today $24,661
stock.market $24,390
web.development $24,320
loans.canada $24,174
loans.online $24,114
loans.direct $24,111
loans.centre $24,070
loans.finance $24,060
loans.mall $24,056
loans.companies $24,056
loans.money $24,052
web.page $24,050
loans.rates $24,036
loans.toronto $24,034
loans.australia $24,034
loans.bank $24,033
loans.now $24,033
loans.loans $24,030
loans.auto $24,028
loans.home $24,025
loans.mortgage $24,022
holi.day $24,022
loans.london $24,019
loans.india $24,018
loans.usa $24,017
loans.houston $24,014
loans.plus $24,012
loans.international $24,012
loans.express $24,011
loans.services $24,011
loans.california $24,010
loans.center $24,010
loans.nyc $24,005
loans.business $24,005
web.chat $23,990
web.mail $23,870
rental.cars $23,707
web.space $23,660
web.marketing $23,461
web.graphics $23,390
web.shop $23,250
web.sex $23,169
web.radio $23,156
insurance.company $23,150
web.services $23,088
web.host $23,005
insurance.card $22,989
web.engineering $22,918
insurance.companies $22,847
cars.auction $22,808
web.game $22,775
cars.guide $22,759
web.store $22,751
insurance.sales $22,688
insurance.lawyers $22,665
insurance.online $22,660
web.directory $22,640
cars.online $22,634
web.attorney $22,631
insurance.health $22,628
cars.canada $22,623
insurance.florida $22,622
web.business $22,614
insurance.car $22,608
cars.parts $22,608
insurance.agency $22,606
insurance.australia $22,603
cell.phone $22,602
web.report $22,602
web.trade $22,598
cars.direct $22,597
web.free $22,592
insurance.life $22,592
insurance.canada $22,588
insurance.house $22,583
insurance.cars $22,577
web.links $22,576
insurance.direct $22,576
cars.australia $22,572
insurance.ireland $22,570
web.search $22,567
cars.toys $22,566
insurance.plan $22,566
web.design $22,566
web.designs $22,565
web.advertising $22,563
insurance.auction $22,563
cars.price $22,561
cars.auctions $22,560
insurance.journal $22,560
web.press $22,560
insurance.marketing $22,560
cars.insurance $22,560
insurance.market $22,559
cars.credit $22,558
cars.finance $22,558
insurance.job $22,558
cars.ireland $22,555
web.cars $22,555
insurance.law $22,555
insurance.world $22,554
web.mobile $22,552
web.team $22,552
web.show $22,551
cars.usa $22,551
web.builders $22,549
insurance.business $22,549
web.email $22,547
web.pages $22,547
cars.deals $22,547
web.star $22,546
web.academy $22,546
web.corp $22,546
insurance.india $22,546
cars.sales $22,546
cars.rental $22,545
insurance.plans $22,544
web.works $22,544
cars.sale $22,544
cars.mexico $22,543
insurance.attorneys $22,542
cars.loans $22,542
web.security $22,541
web.farm $22,540
web.hotel $22,540
web.marine $22,539
insurance.forums $22,539
cars.images $22,538
cars.photos $22,538
web.car $22,538
web.home $22,538
insurance.school $22,538
web.vision $22,537
web.band $22,537
web.card $22,537
insurance.times $22,535
web.exchange $22,535
web.plan $22,535
insurance.technology $22,535
web.photo $22,535
insurance.reviews $22,535
web.media $22,535
cars.club $22,535
cars.tube $22,534
insurance.association $22,534
insurance.exchange $22,534
insurance.prices $22,534
insurance.dental $22,534
web.tickets $22,534
web.village $22,533
cars.prices $22,533
web.auto $22,533
insurance.history $22,532
insurance.factory $22,532
web.deals $22,532
insurance.deals $22,532
web.india $22,532
cars.site $22,532
web.news $22,532
web.kits $22,531
web.gear $22,531
cars.houston $22,531
cars.companies $22,531
insurance.work $22,531
web.srl $22,531
web.shoes $22,531
cars.search $22,531
web.auction $22,530
web.japan $22,530
insurance.sites $22,530
cars.directory $22,530
cars.shop $22,530
cars.quotes $22,529
cars.outlet $22,529
web.download $22,529
web.test $22,529
cars.trade $22,528
web.shopping $22,528
web.casino $22,528
cars.miami $22,527
web.coupons $22,527
cars.loan $22,527
insurance.search $22,527
cars.reviews $22,527
insurance.attorney $22,526
insurance.toronto $22,525
insurance.consultants $22,525
insurance.consulting $22,525
insurance.insurance $22,525
insurance.guide $22,525
insurance.america $22,524
cars.rentals $22,524
web.world $22,524
web.guide $22,524
web.sale $22,524
web.poker $22,523
cars.racing $22,523
web.porn $22,523
web.movies $22,523
web.videos $22,523
cars.videos $22,523
web.consulting $22,523
cars.service $22,523
insurance.central $22,522
insurance.california $22,522
cars.land $22,522
web.institute $22,522
cars.international $22,522
web.hotels $22,522
web.university $22,521
web.data $22,521
web.factory $22,521
cars.japan $22,521
insurance.express $22,521
insurance.magazine $22,521
insurance.tax $22,520
cars.toronto $22,520
web.loans $22,520
web.music $22,520
web.production $22,519
cars.oil $22,519
insurance.loan $22,519
web.sport $22,519
insurance.capital $22,519
insurance.research $22,519
web.one $22,519
cars.repair $22,519
web.bar $22,519
insurance.test $22,519
cars.europe $22,519
insurance.family $22,519
insurance.finder $22,518
web.course $22,518
insurance.corporation $22,518
web.computers $22,518
insurance.report $22,518
web.place $22,518
insurance.london $22,518
cars.books $22,518
web.products $22,518
insurance.center $22,518
web.community $22,517
insurance.portal $22,517
web.tool $22,517
web.internet $22,517
cars.sites $22,517
web.properties $22,517
insurance.network $22,517
web.auctions $22,516
cars.spain $22,516
web.agent $22,516
insurance.finance $22,516
web.property $22,516
insurance.office $22,516
cars.trading $22,515
insurance.texas $22,515
cars.rent $22,514
cars.show $22,514
insurance.plus $22,514
web.tours $22,514
web.europe $22,514
cars.city $22,514
web.review $22,514
insurance.sale $22,514
cars.storage $22,513
cars.motors $22,513
cars.glass $22,513
insurance.discount $22,513
insurance.houston $22,513
insurance.corp $22,513
cars.wholesale $22,512
web.gold $22,512
insurance.global $22,512
web.loan $22,512
web.realestate $22,512
web.nyc $22,512
cars.review $22,512
cars.world $22,512
insurance.homes $22,512
web.society $22,511
web.shirt $22,511
insurance.atlanta $22,511
web.times $22,511
cars.discount $22,511
insurance.centre $22,511
web.solution $22,510
insurance.today $22,510
web.trading $22,510
insurance.mobile $22,510
web.events $22,510
web.ltd $22,510
web.direct $22,510
web.realty $22,510
web.law $22,510
insurance.international $22,510
web.insurance $22,510
insurance.service $22,510
insurance.inc $22,510
web.signs $22,509
web.italy $22,509
cars.mag $22,509
insurance.massage $22,509
web.md $22,509
cars.electronics $22,509
web.diet $22,509
web.berlin $22,509
insurance.tips $22,509
web.usa $22,509
web.inc $22,509
insurance.realestate $22,508
cars.buy $22,507
cars.centre $22,506
cars.texas $22,505
web.cafe $22,505
web.salon $22,502
insurance.home $22,501
insurance.chicago $22,500
house.insurance $22,200
car.hire $22,000
capital.news $21,540
online.dating $21,200
disney.world $20,850
ware.house $20,532
sex.shop $20,500
shopping.mall $20,250
air.canada $20,110
job.bank $20,040

 

You can watch a video on  DomainIndex.com explanation of its valuation of  new gTLD’s here:

http://www.screenr.com/Z1Q7

GoDaddy.com Aftermarket Sells 34,132 Domain Names In February

March 1st, 2013 Comments off

Godaddy.com sold 34,132 domain names through its Aftermarket/Auction system in February down slightly from January when it sold 35,803.

February sales were led by Xe.co which sold for $37,500

Here are the top 10 sales for February as listed on Godaddy.com site:

2/1 - 2/28
 xe.co $37,500
 chillersystems.com $18,000
 envirocheck.com $16,500
 freebies.org $15,000
 sheltermortgage.com $15,000
 rollover.net $14,500
 discountbusinesscards.com $13,500
 childsponsorship.com $12,995
 marketstrong.com $12,500
 linspire.com $12,02

 

freebies.org is a domain name that we sold.

Of the 34,132 domain names sold:

683 Offer/Counter-Offer
18,379 Auction
15,070 Buy Now…

DomainMongrel.com Launches New Domain Appraisal Tool: Here’s Some Comparisons

January 23rd, 2013 Comments off

If your a frequent reader of TheDomains.com you know we are not great fans on domain name appraisal tools so we might be surprised to see us announce yet another one,  DomainMongrel.com

I will go through some results we got today but first this is how the developers described the appraisal tool in their press release today:

“This new tool—Domain Name Estimator—offers domainers a rough indication of a domain’s worth by making use of advanced statistical analysis based on a number of factors.

These factors include:

.     Alexa monthly ranking: How the domain ranks in popularity both globally and in the US.
·         Global monthly searches: The number of searches made for the keywords globally.
·         Regional monthly searches: The number of searches made for the keywords locally.
·         Estimated keyword cost-per-click: The average cost per click for the popular keywords
·         Dictionary worth: If the domain name keywords are from the dictionary or not.
.     Historical domain sales: The tool takes into account past sales data of similar domain names.
.     Google hits: The number of google hits the keywords of a domain has globally.

The Domain Appraisal tool shows potential buyers and sellers the value of a domain to help them make an informed decision about pricing their domains.

Estimating a domain name value is a hard problem to solve given that the value of a domain name is determined by the end user. A domain name which is worth thousands of dollars to one user could be worthless to another. Given these problems, there are very few accurate domain name appraisal tools. Entering into the fray is DomainMongrel.com, helping website owners make decent choices in estimating the value of a domain name before buying or selling it. DomainMongrel.com has been beta tested on the hacker news where it was well received by the hacker community and made it to the front page. Current competitors includes Estibot.com and Sedo’s Domain Value Indicator tool.”

So here are a few test domains that put through Estibot.com and DomainMongrel.com (DM)

345.com-This is a domain we own that we have turned down $30oK twice for in the past 2 weeks

DM appraisal: $288,647.53

Estibot appraisal: $31,000

ACAM.com a (domain sold last week by Mike Mann for $40K)

DM value $5,055.56; Estibot $41K (now adjusted for the sale price)

Sale.com: DM $484,000; Estibot $7 Million

DivorceAttorneys.com: DM $21.00 Estibot.com$117,000

Music.com: DM: $754K Estibot $5.5 Million

TheDomains.com DM: $423,000 Estibot.com $11K

TheDomain.com DM:  $103,000 Estibot.com $57,000

Ricksblog.com DM: $411K Estibot.com $2,500

For fun we put each competing service through each other appraisal tool:

DM appraised Estibot.com at $1,995,726.95

Estibot.com appraised DomainMongrel.com at $0

Feel free to test some of your own domains and give us the results.…

IDNX/Sedo: Number Crunching Shows, Domains Sell Faster With “Charm Prices”

January 22nd, 2013 Comments off

This is a Guest Post by Thies Lindenthal, Sedo.com’s product manager for domain pricing, and a visiting scholar at the Massachusetts Institute of Technology (MIT) Center for Real Estate. Mr. Lindenthal holds a PhD in Real Estate Finance from Maastricht University, and frequently publishes on both housing markets and on Internet domain names as a form of ‘virtual land’.

Dr. Lindenthal developed IDNX, the first scientific grade price index for Internet domain names.

Here is the Dr. Lindenthal post:

Pricing domain names is as much an art as it is science.

Though opinions differ on the merits of automatic appraisal services (at Sedo, we believe in the benefits of fast, automatic price suggestions), statistics show that one very simple strategy speeds up sales.

The retail world has known for a long time that using charm prices—for example, $499 instead of $500—increases sales and helps a consumer make a faster purchasing decision. Extensive research in retail and housing markets also shows that charm prices are not an urban legend, but a legitimate sales tactic: consumers really do react positively to the “odd” 99 prices.

We wondered whether domain owners might also benefit from this nugget of retail psychology, so we took a closer look at Buy Now domain listings with different price points and the amount of time those listings spent on the market, using Sedo’s sales data as our basis.

A one-off comparison of average time-on-market for domains that ultimately sold for $500 rather than $499 shows that domains priced with a round number took, on average, 22% longer to find a buyer on Sedo’s marketplace.

However, this figure is too high for a handful of reasons.

Firstly, this increase in sales velocity could be caused in part by aggressive sales strategies used by domain investors. Those sellers who often list their domains with low prices and do a lot of additional marketing might also use charm pricing already – which makes it difficult to disentangle the different factors.

As a means of controlling for differences in sales strategies, we compare time-on-market for domains listed by sellers who use both round and charm prices. This ensures a fair comparison. In the case of these domains, we can assume that those with round prices and charm prices are promoted in the same way and that the seller has applied a similar pricing rationale.

Taking it one step further, we look into difference in the quality of the domains in each seller’s account.…

Domainindex.com Downgrades .Co.uk From AA To B: Introduction of .uk TLD “Would Massively Destroy the Value of Existing .co.uk Domains

November 13th, 2012 Comments off

Domainindex.com, downgraded  its rating for .co.uk from AA to B.

The step has been taken after the release on October 1, 2012 of a three-month consultation by Nominet, the not-for-profit manager of the .uk infrastructure, into a scheme that would introduce .uk as a top-level domain (TLD).

After getting feedback from Nominet meetings held in London on Nov.7and 9 Domainindex.com decided to change the .uk rating

Currently, over ten million UK domains are structured as anybusiness.co.uk; under the proposal, a competing structure would be introduced: anybusiness.uk.

Domainindex has also issued an Investors Warning for co.uk and .uk TLD, and “believes the introduction of the .uk TLD would massively destroy the value of existing .co.uk domains” and in fact Nominet´s announcement already inflicted harm to the value of .co.uk domains and the aftermarket as well as the investment climate in the .uk TLD.

Domainindex analysis of the proposal, would have several adverse effects:

  • The auction of .uk sites would preferentially favor trademark holders instead of existing domain holders, thereby representing an unprecedented expropriation of domain registrants and website of whom most do not own the trademark for their domain name.
  • The higher costs of the .uk TLD are in effect an Internet tax for businesses in the UK and especially to domainers as it will raise the cost of holding an inventory by 800% and will lead to drop of many .co.uk names that until recently have represented significant value.
  • The move will create more bureaucracy and red-tape.
  • British companies would have massive rebranding costs.
  • The proposal will create months or years of uncertainty as the issue is litigated in the courts.

(It should be noted that WebHosting.co.uk recently sold on Sedo.com for $500,000 after the Nominet announcement

Domainindex also announced the following rating changes in November:

.me up from A to AA (because of the good performance of the TLD)

.eu down from AA to A (because we expect the TLD to suffer from nTLDs and weak economy in the Eurozone)

.info down from AA to A (because we expect the TLD to suffer more from nTLDs)

.mobi down from A to B (because we expect the TLD to suffer more from nTLDs)

.tel down from AA to A (because we expect the TLD to suffer more from nTLDs)…

Marchex’s Sales Prove It: Estibot Appraisals Are Worthless

November 2nd, 2012 Comments off

As a domain owner there is nothing more frustrating than having someone argue that the asking price of your domain is too high because its over “Estibot Appraisal” (unless your price is lower) then they hit you with the “its only worth what someone willing to pay for it” line.

Estibot.com for those who don’t know is a tool that attempts to appraise domain name on a bunch of statistical information.

For years I have argued that since the tool is not intuitive and only relies on statistical information, it is too unreliable to be cited by anyone to “prove” valuation.

Finding fault with the tool has always been difficult because as soon as domain sales are announced the tool typically picks up the recorded price as the current valuation and therefore its generally been impossible to take a look back at Estibot values before sales are announced.

But yesterday’s announcement of over 500 domain names sold by Marchex in 2008-2012, which were all previously unannounced, seemed like the perfect opportunity to show how accurate Estibot’s valuation is compared to actual sale prices and as you can see below the results are pretty convincing.

The 501 domain sold by by Marchex came to just over $26 million dollars in sales.

For over 50% of the domain names sold by Marchex, or a total of 266 domains, Estibot valued them at $5K or under.

Those 266 domain names, generated almost $8.9 million dollars in sales for Marchex.

Estibot values those 266 domain names at just $394,000 or less than 5% of the actual selling price.

Ok lets say it again.

For more than half of all the 501 domain names Marchex sold for a total of almost $8.9 Million Dollars, Estibot valued those domains at less than 5% of the actual selling price.

Included in this group of 266 domain names valued less than $5K by Estibot were 115 domain names that  had an Estibot appraised value of $1,000 or less.

Estibot’s total valuation for this group of 115 domains came to just $48,000, but those 115 domain names generated almost $3.5 Million in sales for Marchex.

Here are the details:

 

Domain Sale Price Sale Price Difference From Appraisal Appraisal Appraisal % of Sale Price
funttime.com $50,000 $50,000 $0 0.0%
discoverla.com $30,000 $30,000 $0 0.0%
msonetoone.com $30,000 $30,000 $0 0.0%
digiday.com $25,000 $25,000 $0 0.0%
fashao.com $10,625 $10,625 $0 0.0%
shouguang.com $10,625 $10,625 $0 0.0%
kuaima.com $10,625 $10,625 $0 0.0%
shizhuang.com $9,756 $9,756 $0 0.0%
zhuangxiu.com $9,756 $9,756 $0 0.0%
jining.com $9,756 $9,756 $0 0.0%
247sports.com $40,000 $39,995 $5 0.0%
lvxing.net $10,625 $10,610 $15 0.1%
e-tab.com $15,000 $14,960 $40 0.3%
putuo.com $10,625 $10,585 $40 0.4%
tingba.com $9,756 $9,716 $40 0.4%
megabets.com $15,385 $15,310 $75 0.5%
88net.com $50,000 $49,915 $85 0.2%
newyorknewyears.com $10,000 $9,910 $90 0.9%
fightco.com $30,000 $29,900 $100 0.3%
suanming.com $9,756 $9,646 $110 1.1%
house2home.com $10,000 $9,880 $120 1.2%
retiresmart.com $50,000 $49,850 $150 0.3%
tradebot.com $30,000 $29,850 $150 0.5%
ontheline.org $20,000 $19,840 $160 0.8%
mangopeople.com $10,000 $9,840 $160 1.6%
simplysmarter.com $35,000 $34,830 $170 0.5%
e-cigarettes.com $15,000 $14,820 $180 1.2%
nasper.com $15,000 $14,820 $180 1.2%
sportsrx.com $10,000 $9,820 $180 1.8%
abound.net $25,000 $24,800 $200 0.8%
chinapatent.com $22,500 $22,300 $200 0.9%
travel2turkey.com $10,000 $9,800 $200 2.0%
happy-family.com $10,000 $9,800 $200 2.0%
chinadoctor.com $15,000 $14,790 $210 1.4%
kaiwan.com $10,625 $10,395 $230 2.2%
huadong.com $9,756 $9,526 $230 2.4%
wanguo.com $10,625 $10,385 $240 2.3%
speedmedia.com $10,000 $9,760 $240 2.4%
gormetgiftbaskets.com $10,000 $9,760 $240 2.4%
megadisk.com $15,385 $15,135 $250 1.6%
linnan.com $10,625 $10,375 $250 2.4%
jacks.net $30,000 $29,740 $260 0.9%
opensupport.com $40,000 $39,730 $270 0.7%
seattlenow.com $125,000 $124,720 $280 0.2%
shopville.com $25,000 $24,720 $280 1.1%
seelasvegas.com $18,333 $18,043 $290 1.6%
yongkang.com $9,756 $9,466 $290 3.0%
discountfilter.com $46,250 $45,950 $300 0.6%
itruck.com $85,000 $84,690 $310 0.4%
merchantexchange.com $50,000 $49,690 $310 0.6%
wodi.com $10,625 $10,305 $320 3.0%
simplybusiness.com $40,000 $39,660 $340 0.9%
pingxiang.com $9,756 $9,376 $380 3.9%
megadesign.com $15,385 $14,995 $390 2.5%
aaefcu.com $25,000 $24,600 $400 1.6%
gamekingdom.com $40,000 $39,560 $440 1.1%
marketsmith.com $50,000 $49,550 $450 0.9%
smartdesktop.com $35,000 $34,540 $460 1.3%
my-website.com $35,000 $34,520 $480 1.4%
cubacruises.com $20,000 $19,520 $480 2.4%
dalong.com $10,625 $10,135 $490 4.6%
zhongyao.com $9,756 $9,266 $490 5.0%
gradnet.com $100,000 $99,500 $500 0.5%
tswj.com $64,678 $64,178 $500 0.8%
medclub.com $60,000 $59,490 $510 0.9%
hotbook.com $25,000 $24,480 $520 2.1%
austinfertility.com $10,000 $9,470 $530 5.3%
xiangyang.com $9,756 $9,226 $530 5.4%
chinastyle.com $32,500 $31,950 $550 1.7%
diqiu.com $9,756 $9,206 $550 5.6%
tvtalk.com $37,500 $36,940 $560 1.5%
domainmedia.com $22,500 $21,940 $560 2.5%
quanzhou.com $33,520 $32,950 $570 1.7%
eastmall.com $25,000 $24,430 $570 2.3%
sandiegonightlife.com $18,500 $17,930 $570 3.1%
myadvantage.com $75,000 $74,420 $580 0.8%
lingerieclub.com $60,000 $59,420 $580 1.0%
netcloud.com $25,000 $24,420 $580 2.3%
madeinbritain.com $22,500 $21,910 $590 2.6%
phoenixnightlife.com $18,500 $17,900 $600 3.2%
seemiami.com $18,333 $17,733 $600 3.3%
hujiang.com $50,000 $49,390 $610 1.2%
nextlove.com $35,000 $34,390 $610 1.7%
easydate.com $100,000 $99,380 $620 0.6%
fiveminutes.com $35,000 $34,380 $620 1.8%
xiandai.com $9,756 $9,136 $620 6.4%
chinascience.com $11,667 $11,037 $630 5.4%
hkmall.com $35,000 $34,340 $660 1.9%
realprofits.com $10,000 $9,340 $660 6.6%
hefei.net $10,625 $9,955 $670 6.3%
customlink.com $30,000 $29,320 $680 2.3%
tradernet.com $50,000 $49,310 $690 1.4%
merchantcenter.com $46,250 $45,550 $700 1.5%
sportshq.com $39,802 $39,082 $720 1.8%
pictureclub.com $25,000 $24,270 $730 2.9%
megacash.com $15,385 $14,655 $730 4.7%
jiaxin.com $10,625 $9,885 $740 7.0%
airaustralia.com $75,000 $74,250 $750 1.0%
supersupport.com $50,000 $49,250 $750 1.5%
facai.com $9,756 $8,986 $770 7.9%
e-lottery.com $20,000 $19,220 $780 3.9%
shenxiao.com $10,625 $9,845 $780 7.3%
portlandnow.com $125,000 $124,210 $790 0.6%
umbc.com $50,000 $49,210 $790 1.6%
smartjob.com $50,000 $49,210 $790 1.6%
carwise.com $60,000 $59,200 $800 1.3%
thefeast.com $32,500 $31,700 $800 2.5%
jiehun.com $9,756 $8,946 $810 8.3%
pricedrops.com $70,000 $69,100 $900 1.3%
ineworleans.com $28,500 $27,600 $900 3.2%
megaflowers.com $25,000 $24,100 $900 3.6%
ifonly.com $30,000 $29,080 $920 3.1%
erpconsulting.com $30,000 $29,080 $920 3.1%
eraise.com $40,000 $39,020 $980 2.5%
nationtv.com $32,500 $31,520 $980 3.0%
vstate.com $55,000 $54,000 $1,000 1.8%
debtwise.com $50,000 $49,000 $1,000 2.0%
ubest.com $50,000 $49,000 $1,000 2.0%
lovetolearn.com $50,000 $49,000 $1,000 2.0%
ulike.com $50,000 $49,000 $1,000 2.0%
ccfi.com $30,000 $29,000 $1,000 3.3%
safebank.com $30,000 $29,000 $1,000 3.3%
thedeep.com $25,000 $24,000 $1,000 4.0%
homechina.com $22,500 $21,500 $1,000 4.4%
chinalawyer.com $15,000 $14,000 $1,000 6.7%
hongqiao.com $10,625 $9,625 $1,000 9.4%
shangdi.com $10,625 $9,625 $1,000 9.4%
xianfeng.com $9,756 $8,756 $1,000 10.3%
thecookingchannel.com $65,000 $63,900 $1,100 1.7%
callers.net $50,000 $48,900 $1,100 2.2%
steward.org $35,000 $33,900 $1,100 3.1%
punkstar.com $20,000 $18,900 $1,100 5.5%
100plus.com $10,000 $8,900 $1,100 11.0%
getreal.com $50,000 $48,800 $1,200 2.4%
sensenet.com $35,000 $33,800 $1,200 3.4%
chinahealth.com $15,000 $13,800 $1,200 8.0%
chinajewelry.com $12,000 $10,800 $1,200 10.0%
chinarealty.com $11,667 $10,467 $1,200 10.3%
gugong.com $10,625 $9,425 $1,200 11.3%
dazhong.com $9,756 $8,556 $1,200 12.3%
wujin.com $9,756 $8,556 $1,200 12.3%
dreambody.com $90,000 $88,700 $1,300 1.4%
postalservices.com $46,250 $44,950 $1,300 2.8%
phila.org $37,800 $36,500 $1,300 3.4%
x2m.com $25,000 $23,700 $1,300 5.2%
megabot.com $15,385 $14,085 $1,300 8.4%
megastudio.com $15,385 $14,085 $1,300 8.4%
buzzcar.com $10,000 $8,700 $1,300 13.0%
liveshare.com $65,000 $63,600 $1,400 2.2%
monkeygames.com $57,143 $55,743 $1,400 2.4%
heyuan.com $9,756 $8,356 $1,400 14.4%
dianxin.com $9,756 $8,356 $1,400 14.4%
iceo.com $70,000 $68,500 $1,500 2.1%
lyst.com $40,000 $38,500 $1,500 3.8%
chinacenter.com $33,000 $31,500 $1,500 4.5%
chinafurniture.com $12,000 $10,500 $1,500 12.5%
vegasworld.com $75,000 $73,400 $1,600 2.1%
hrpeople.com $35,000 $33,400 $1,600 4.6%
patchcable.com $30,000 $28,400 $1,600 5.3%
skirace.com $25,000 $23,400 $1,600 6.4%
zonacolonial.com $25,000 $23,400 $1,600 6.4%
basketballexpress.com $25,000 $23,400 $1,600 6.4%
chinapress.com $12,000 $10,400 $1,600 13.3%
youmag.com $50,000 $48,300 $1,700 3.4%
thenext.com $50,000 $48,300 $1,700 3.4%
lesport.com $25,000 $23,300 $1,700 6.8%
paimai.com $80,000 $78,200 $1,800 2.3%
kaixin.com $48,000 $46,200 $1,800 3.8%
musiccanada.com $40,000 $38,200 $1,800 4.5%
mercator.org $30,000 $28,200 $1,800 6.0%
waterfowling.com $25,000 $23,200 $1,800 7.2%
nc2.com $10,000 $8,200 $1,800 18.0%
cooljokes.com $57,143 $55,243 $1,900 3.3%
hry.net $32,500 $30,600 $1,900 5.8%
p2i.com $25,000 $23,100 $1,900 7.6%
chinatrademark.com $22,500 $20,600 $1,900 8.4%
pingpang.com $10,625 $8,725 $1,900 17.9%
myeducation.com $200,000 $198,000 $2,000 1.0%
peoplepower.com $100,000 $98,000 $2,000 2.0%
myapp.com $100,000 $98,000 $2,000 2.0%
thed.com $85,000 $83,000 $2,000 2.4%
youtoo.com $75,000 $73,000 $2,000 2.7%
diettv.com $60,000 $58,000 $2,000 3.3%
quickhit.com $50,000 $48,000 $2,000 4.0%
firstborn.com $50,000 $48,000 $2,000 4.0%
xishi.com $50,000 $48,000 $2,000 4.0%
ultramusic.com $50,000 $48,000 $2,000 4.0%
rightturn.com $50,000 $48,000 $2,000 4.0%
upthere.com $50,000 $48,000 $2,000 4.0%
mycase.com $46,250 $44,250 $2,000 4.3%
divinelove.com $45,000 $43,000 $2,000 4.4%
thedrum.com $45,000 $43,000 $2,000 4.4%
saferoad.com $38,000 $36,000 $2,000 5.3%
diyadvice.com $35,000 $33,000 $2,000 5.7%
newstory.com $30,000 $28,000 $2,000 6.7%
secretworld.com $30,000 $28,000 $2,000 6.7%
petguide.com $27,500 $25,500 $2,000 7.3%
germanamerican.com $25,000 $23,000 $2,000 8.0%
aspiringminds.com $25,000 $23,000 $2,000 8.0%
wesell.com $23,333 $21,333 $2,000 8.6%
domainindex.com $22,500 $20,500 $2,000 8.9%
digitalone.com $19,600 $17,600 $2,000 10.2%
seevegas.com $18,333 $16,333 $2,000 10.9%
chinaventure.com $12,000 $10,000 $2,000 16.7%
keying.com $10,625 $8,625 $2,000 18.8%
shijie.com $9,756 $7,756 $2,000 20.5%
xinxin.com $9,756 $7,756 $2,000 20.5%
zhongyi.com $9,756 $7,756 $2,000 20.5%
mydeals.com $100,000 $97,800 $2,200 2.2%
amazingworld.com $75,000 $72,800 $2,200 2.9%
etao.com $50,000 $47,800 $2,200 4.4%
arcmail.com $40,000 $37,800 $2,200 5.5%
livebetter.com $50,000 $47,700 $2,300 4.6%
worldtourism.com $50,000 $47,700 $2,300 4.6%
hotpot.com $40,000 $37,700 $2,300 5.8%
getlive.com $30,000 $27,700 $2,300 7.7%
allcome.com $30,000 $27,700 $2,300 7.7%
megasale.com $15,385 $13,085 $2,300 14.9%
minsheng.com $9,756 $7,456 $2,300 23.6%
changjiang.com $9,756 $7,456 $2,300 23.6%
cardsafe.com $50,000 $47,600 $2,400 4.8%
affordablecars.com $46,250 $43,850 $2,400 5.2%
ukland.com $35,000 $32,600 $2,400 6.9%
nvnv.com $10,625 $8,125 $2,500 23.5%
magicnumber.com $25,000 $22,400 $2,600 10.4%
hiya.com $22,500 $19,900 $2,600 11.6%
thethread.com $20,000 $17,400 $2,600 13.0%
bestofnewyork.com $70,000 $67,200 $2,800 4.0%
internationalman.com $50,000 $47,200 $2,800 5.6%
megastock.com $15,385 $12,585 $2,800 18.2%
paidfocusgroups.com $10,000 $7,200 $2,800 28.0%
wangfujing.com $50,000 $47,100 $2,900 5.8%
bestdirect.com $50,000 $46,900 $3,100 6.2%
manofthehouse.com $25,000 $21,900 $3,100 12.4%
termite-control.com $25,000 $21,900 $3,100 12.4%
masonicrings.com $25,000 $21,900 $3,100 12.4%
harpguitars.com $30,000 $26,800 $3,200 10.7%
airpurifierreviews.com $16,250 $13,050 $3,200 19.7%
visitcyprus.com $35,000 $31,700 $3,300 9.4%
francerealestate.com $25,000 $21,700 $3,300 13.2%
e-spirit.com $11,000 $7,700 $3,300 30.0%
miemie.com $10,625 $7,325 $3,300 31.1%
megabits.com $15,385 $11,985 $3,400 22.1%
consumercredit.org $100,000 $96,500 $3,500 3.5%
bankofarizona.com $25,000 $21,400 $3,600 14.4%
megalive.com $100,000 $96,300 $3,700 3.7%
faxian.com $9,756 $6,056 $3,700 37.9%
sportal.net $27,000 $23,200 $3,800 14.1%
icpr.com $46,250 $42,350 $3,900 8.4%
baoshan.com $10,625 $6,725 $3,900 36.7%
mediapass.com $25,000 $20,800 $4,200 16.8%
familytree.org $50,000 $45,700 $4,300 8.6%
japanesecar.com $46,250 $41,950 $4,300 9.3%
barguide.com $40,000 $35,700 $4,300 10.8%
onlineuniversity.org $37,500 $33,200 $4,300 11.5%
vbet.com $30,000 $25,700 $4,300 14.3%
newyorktours.com $46,250 $41,850 $4,400 9.5%
addictiontreatment.org $50,000 $45,500 $4,500 9.0%
rvguide.com $40,000 $35,500 $4,500 11.3%
jiayou.com $9,756 $5,256 $4,500 46.1%
dreambuilder.com $25,000 $20,400 $4,600 18.4%
free-bet.com $10,000 $5,400 $4,600 46.0%
huangdi.com $10,625 $5,925 $4,700 44.2%
oneweek.com $52,016 $47,216 $4,800 9.2%
hairreplacement.org $30,000 $25,200 $4,800 16.0%
wuzhen.com $9,756 $4,956 $4,800 49.2%
zuqiu.com $33,520 $28,520 $5,000 14.9%
$8,864,265 $393,400 6.5%

 

If you look at the 200 domain names sales based on those that sold for the greatest difference in sales price compared to Esibot Appraised value you’ll see some $14 Million in domain sales that Estibot has a total appraised value of less than $2.5 Million or less than 20% of selling price:

 

Domain Sale Price Sale Price Difference From Appraisal Appraisal Appraisal % of Sale Price
localdeals.com $500,000 $481,000 $19,000 3.8%
matrimony.com $500,000 $376,000 $124,000 24.8%
blockparty.com $300,000 $256,000 $44,000 14.7%
myeducation.com $200,000 $198,000 $2,000 1.0%
freescore.com $200,000 $192,200 $7,800 3.9%
freescores.com $200,000 $189,000 $11,000 5.5%
caloriecount.com $250,000 $180,000 $70,000 28.0%
vuelos.com $500,775 $178,775 $322,000 64.3%
universalsports.com $250,000 $136,000 $114,000 45.6%
seattlenow.com $125,000 $124,720 $280 0.2%
portlandnow.com $125,000 $124,210 $790 0.6%
giggle.com $250,000 $119,000 $131,000 52.4%
liuxue.com $125,000 $115,400 $9,600 7.7%
ultimaterewards.com $120,000 $100,000 $20,000 16.7%
gradnet.com $100,000 $99,500 $500 0.5%
easydate.com $100,000 $99,380 $620 0.6%
peoplepower.com $100,000 $98,000 $2,000 2.0%
myapp.com $100,000 $98,000 $2,000 2.0%
mydeals.com $100,000 $97,800 $2,200 2.2%
consumercredit.org $100,000 $96,500 $3,500 3.5%
megalive.com $100,000 $96,300 $3,700 3.7%
humanenergy.com $100,000 $94,700 $5,300 5.3%
dreambody.com $90,000 $88,700 $1,300 1.4%
itruck.com $85,000 $84,690 $310 0.4%
stickerbook.com $100,000 $84,000 $16,000 16.0%
thed.com $85,000 $83,000 $2,000 2.4%
paimai.com $80,000 $78,200 $1,800 2.3%
myadvantage.com $75,000 $74,420 $580 0.8%
airaustralia.com $75,000 $74,250 $750 1.0%
vegasworld.com $75,000 $73,400 $1,600 2.1%
youtoo.com $75,000 $73,000 $2,000 2.7%
amazingworld.com $75,000 $72,800 $2,200 2.9%
polishop.com $75,000 $69,300 $5,700 7.6%
pricedrops.com $70,000 $69,100 $900 1.3%
consumerdirect.com $80,000 $69,000 $11,000 13.8%
sobi.com $90,000 $69,000 $21,000 23.3%
iceo.com $70,000 $68,500 $1,500 2.1%
fortuneonline.com $75,000 $67,500 $7,500 10.0%
bestofnewyork.com $70,000 $67,200 $2,800 4.0%
anxiety.org $85,000 $67,000 $18,000 21.2%
foodie.com $90,000 $67,000 $23,000 25.6%
chromium.org $100,000 $66,000 $34,000 34.0%
lovebook.com $75,000 $65,800 $9,200 12.3%
8808.com $117,778 $65,778 $52,000 44.2%
tswj.com $64,678 $64,178 $500 0.8%
thecookingchannel.com $65,000 $63,900 $1,100 1.7%
liveshare.com $65,000 $63,600 $1,400 2.2%
afar.com $100,000 $63,000 $37,000 37.0%
medclub.com $60,000 $59,490 $510 0.9%
lingerieclub.com $60,000 $59,420 $580 1.0%
carwise.com $60,000 $59,200 $800 1.3%
diettv.com $60,000 $58,000 $2,000 3.3%
8008.com $117,778 $57,778 $60,000 50.9%
hearingloss.com $130,000 $56,000 $74,000 56.9%
monkeygames.com $57,143 $55,743 $1,400 2.4%
cooljokes.com $57,143 $55,243 $1,900 3.3%
ifrs.org $63,000 $54,400 $8,600 13.7%
vstate.com $55,000 $54,000 $1,000 1.8%
discountautoinsurance.com $75,000 $52,000 $23,000 30.7%
funttime.com $50,000 $50,000 $0 0.0%
88net.com $50,000 $49,915 $85 0.2%
retiresmart.com $50,000 $49,850 $150 0.3%
merchantexchange.com $50,000 $49,690 $310 0.6%
marketsmith.com $50,000 $49,550 $450 0.9%
hujiang.com $50,000 $49,390 $610 1.2%
tradernet.com $50,000 $49,310 $690 1.4%
supersupport.com $50,000 $49,250 $750 1.5%
umbc.com $50,000 $49,210 $790 1.6%
smartjob.com $50,000 $49,210 $790 1.6%
debtwise.com $50,000 $49,000 $1,000 2.0%
ubest.com $50,000 $49,000 $1,000 2.0%
lovetolearn.com $50,000 $49,000 $1,000 2.0%
ulike.com $50,000 $49,000 $1,000 2.0%
callers.net $50,000 $48,900 $1,100 2.2%
getreal.com $50,000 $48,800 $1,200 2.4%
crazygames.com $57,143 $48,543 $8,600 15.0%
youmag.com $50,000 $48,300 $1,700 3.4%
thenext.com $50,000 $48,300 $1,700 3.4%
quickhit.com $50,000 $48,000 $2,000 4.0%
firstborn.com $50,000 $48,000 $2,000 4.0%
xishi.com $50,000 $48,000 $2,000 4.0%
ultramusic.com $50,000 $48,000 $2,000 4.0%
rightturn.com $50,000 $48,000 $2,000 4.0%
upthere.com $50,000 $48,000 $2,000 4.0%
coolmovies.com $57,143 $47,943 $9,200 16.1%
etao.com $50,000 $47,800 $2,200 4.4%
livebetter.com $50,000 $47,700 $2,300 4.6%
worldtourism.com $50,000 $47,700 $2,300 4.6%
cardsafe.com $50,000 $47,600 $2,400 4.8%
oneweek.com $52,016 $47,216 $4,800 9.2%
internationalman.com $50,000 $47,200 $2,800 5.6%
wangfujing.com $50,000 $47,100 $2,900 5.8%
likeness.com $65,000 $47,000 $18,000 27.7%
bestdirect.com $50,000 $46,900 $3,100 6.2%
kaixin.com $48,000 $46,200 $1,800 3.8%
healthland.com $60,000 $46,000 $14,000 23.3%
discountfilter.com $46,250 $45,950 $300 0.6%
familytree.org $50,000 $45,700 $4,300 8.6%
merchantcenter.com $46,250 $45,550 $700 1.5%
addictiontreatment.org $50,000 $45,500 $4,500 9.0%
postalservices.com $46,250 $44,950 $1,300 2.8%
yourwellness.com $50,000 $44,800 $5,200 10.4%
mycase.com $46,250 $44,250 $2,000 4.3%
sportsoutlet.com $50,000 $44,100 $5,900 11.8%
storagemaster.com $50,000 $44,100 $5,900 11.8%
mumbo.com $50,000 $44,000 $6,000 12.0%
affordablecars.com $46,250 $43,850 $2,400 5.2%
dreamtrips.com $50,000 $43,200 $6,800 13.6%
divinelove.com $45,000 $43,000 $2,000 4.4%
thedrum.com $45,000 $43,000 $2,000 4.4%
fireapparatus.com $55,000 $43,000 $12,000 21.8%
beget.com $100,000 $43,000 $57,000 57.0%
cocaine.net $57,500 $42,500 $15,000 26.1%
icpr.com $46,250 $42,350 $3,900 8.4%
japanesecar.com $46,250 $41,950 $4,300 9.3%
newyorktours.com $46,250 $41,850 $4,400 9.5%
dfwrealestate.com $50,000 $40,900 $9,100 18.2%
heilongjiang.com $50,000 $40,500 $9,500 19.0%
bingousa.com $51,500 $40,500 $11,000 21.4%
secondmarriage.com $46,250 $40,450 $5,800 12.5%
registeredagents.com $100,000 $40,000 $60,000 60.0%
247sports.com $40,000 $39,995 $5 0.0%
opensupport.com $40,000 $39,730 $270 0.7%
simplybusiness.com $40,000 $39,660 $340 0.9%
gamekingdom.com $40,000 $39,560 $440 1.1%
sportshq.com $39,802 $39,082 $720 1.8%
eraise.com $40,000 $39,020 $980 2.5%
mybag.com $50,000 $39,000 $11,000 22.0%
lyst.com $40,000 $38,500 $1,500 3.8%
musiccanada.com $40,000 $38,200 $1,800 4.5%
aag.com $95,000 $38,000 $57,000 60.0%
homesforsalebyowner.com $46,250 $37,950 $8,300 17.9%
yourdomainhere.com $46,250 $37,950 $8,300 17.9%
arcmail.com $40,000 $37,800 $2,200 5.5%
hotpot.com $40,000 $37,700 $2,300 5.8%
tiwi.com $50,000 $37,000 $13,000 26.0%
tvtalk.com $37,500 $36,940 $560 1.5%
phila.org $37,800 $36,500 $1,300 3.4%
detox.net $57,500 $36,500 $21,000 36.5%
saferoad.com $38,000 $36,000 $2,000 5.3%
barguide.com $40,000 $35,700 $4,300 10.8%
rvguide.com $40,000 $35,500 $4,500 11.3%
mundodeportivo.com $95,000 $35,000 $60,000 63.2%
drugtreatment.com $150,000 $35,000 $115,000 76.7%
simplysmarter.com $35,000 $34,830 $170 0.5%
smartdesktop.com $35,000 $34,540 $460 1.3%
my-website.com $35,000 $34,520 $480 1.4%
lovefashion.com $40,000 $34,400 $5,600 14.0%
nextlove.com $35,000 $34,390 $610 1.7%
fiveminutes.com $35,000 $34,380 $620 1.8%
hkmall.com $35,000 $34,340 $660 1.9%
steward.org $35,000 $33,900 $1,100 3.1%
sensenet.com $35,000 $33,800 $1,200 3.4%
hrpeople.com $35,000 $33,400 $1,600 4.6%
onlineuniversity.org $37,500 $33,200 $4,300 11.5%
diyadvice.com $35,000 $33,000 $2,000 5.7%
mycharity.com $50,000 $33,000 $17,000 34.0%
quanzhou.com $33,520 $32,950 $570 1.7%
ukland.com $35,000 $32,600 $2,400 6.9%
theopen.com $64,500 $32,500 $32,000 49.6%
enterpriseassetmanagement.com $40,000 $32,000 $8,000 20.0%
changers.com $50,000 $32,000 $18,000 36.0%
chinastyle.com $32,500 $31,950 $550 1.7%
thefeast.com $32,500 $31,700 $800 2.5%
visitcyprus.com $35,000 $31,700 $3,300 9.4%
nationtv.com $32,500 $31,520 $980 3.0%
chinacenter.com $33,000 $31,500 $1,500 4.5%
webmall.com $45,000 $31,000 $14,000 31.1%
smartone.com $50,000 $31,000 $19,000 38.0%
endorse.com $100,000 $31,000 $69,000 69.0%
rocklive.com $40,000 $30,700 $9,300 23.3%
hry.net $32,500 $30,600 $1,900 5.8%
discoverla.com $30,000 $30,000 $0 0.0%
msonetoone.com $30,000 $30,000 $0 0.0%
fightco.com $30,000 $29,900 $100 0.3%
tradebot.com $30,000 $29,850 $150 0.5%
jacks.net $30,000 $29,740 $260 0.9%
customlink.com $30,000 $29,320 $680 2.3%
ifonly.com $30,000 $29,080 $920 3.1%
erpconsulting.com $30,000 $29,080 $920 3.1%
ccfi.com $30,000 $29,000 $1,000 3.3%
safebank.com $30,000 $29,000 $1,000 3.3%
esupplements.com $50,000 $29,000 $21,000 42.0%
519.com $60,000 $29,000 $31,000 51.7%
zuqiu.com $33,520 $28,520 $5,000 14.9%
patchcable.com $30,000 $28,400 $1,600 5.3%
mercator.org $30,000 $28,200 $1,800 6.0%
byzantine.com $57,143 $28,143 $29,000 50.7%
newstory.com $30,000 $28,000 $2,000 6.7%
secretworld.com $30,000 $28,000 $2,000 6.7%
takecharge.com $50,000 $28,000 $22,000 44.0%
getlive.com $30,000 $27,700 $2,300 7.7%
allcome.com $30,000 $27,700 $2,300 7.7%
ineworleans.com $28,500 $27,600 $900 3.2%
kompany.com $35,000 $27,200 $7,800 22.3%
zhuhai.com $32,213 $27,113 $5,100 15.8%
isbn.com $140,000 $27,000 $113,000 80.7%
harpguitars.com $30,000 $26,800 $3,200 10.7%
streetking.com $40,000 $26,000 $14,000 35.0%
$13,910,845 $2,469,190  6.5%

On the other side of the ledger there were only 99 domain names out of 501 that sold for less than appraised value, further demonstrating how Estibot generally low balls the true value of domain names.…

Domain Valuation: How To Value a Domain Name

January 13th, 2011 Comments off

Money Tree
You may have seen recent headlines that sex.comsex.com recently sold for $13 million, and that there’s a $9 million dollar price tag attached to gambling.comgambling.com. It was even reported recently that Farmers Bureau sold domains for $8.5 million, including fb.comfb.com to Facebook. With such astronomical prices, you may wonder how domain names can be valued as “small change” at one end of the spectrum while others are in the millions.

Domain valuation is a combination of both art and science. In many cases, domain names have specific and measurable data or attributes on which to base a valuation. Examples would include amount of traffic a domain gets, is it a popular word and correctly spelled, is it on the .com TLD or another less valuable TLD, etc. This is the science part.

However, beauty is in the eye of the beholder and in many cases a domain is worth what someone is willing to pay for it. The classic example is name domains. I  might not pay $10 for [yourname].com but I bet you would pay a lot of money to get your exact match .com name domain that you could use as an email account, as a homepage for your personal website, or for other purpose.

So how much is it really worth? How do you write an algorithm to take that into account? There are countless examples like this. Any scientific algorithm will break down at the margin, with margins being examples like name domains, premium generic domains, trademark domains, number domains, etc. This is where the art comes in.

The value of a domain name is the sum of its generic value and the value of its traffic. Traffic is the easier one. Traffic comes from type-ins (direct input into a browser URL), links/bookmarks, and search. Assuming you can estimate how much each unique visitor is worth (based on how you monetize the traffic) you can then come up with a simple formula which calculates the amount of revenue or value you get from the domain’s inherent web traffic each year (to learn more about web analytics, read Wikipedia’s article here. The current market might place a 3-5 year multiple on that ‘revenue’, similar to how companies are often valued at 1-2x Sales, or 5-7x cashflow.

Generic value is a more complex animal. Here are some things you look at when you are trying to estimate the value of a generic domain: uniqueness, length, word count, singular or plural, any dashes or numbers, TLD, industry vertical or keyword value, correctly spelled, substitute words, possible uses, etc. etc. This is where experience and industry knowledge often trumps data.

In addition, you can use this list as a reference of what appraisers might take into account:

  • Top-level domain — the most valuable domains are .com domains.
  • Meaning — domain names referring to popular subjects are worth more than those referring to niche subjects, e.g. movies vs. entomology.
  • Suitability for commercialization if the domain name is relevant to specific specific service or product keywords, it will be more attractive for commercial development purposes.
  • Memorability — relative from person to person, but this also ties in with length.
  • Number of words — domains that comprise fewer words generally have a larger market.
  • Number of searches —performed for the domain name or its component words in recent history can indicate its value for search engine optimization.
  • Length — shorter names are more convenient for users, being faster to type and less prone to typing errors.
  • Pronounceability — a domain whose proper spelling is clear when spoken is generally more valuable than one which is ambiguous.
  • Added numbers —usually lower estimation (e.g., Example24.comExample24.com would be rated as less valuable than Example.comExample.com).
  • Typographical errors or misspellings — Domain names resembling other domains except for a typographical error can be valued by those seeking to use them for advertising or competitive activities, but can also run afoul of local trademark laws. (e.g. flickr is an example of a purposeful typo).
  • Age — a long-established domain tends to be more valuable.
  • Singular and plural domains — may differ in their pricing (e.g. books.combooks.com  would be valued more than book.combook.com since people are much more likely to search for ‘books’).
  • Recent traffic — how much inherent web traffic the domain name generates each year (see section above).
  • Selling price of previous similar domains — can suggest the current market value of a domain name.

If you do not have the experience or knowledge, there are brokers and companies available to assist you. Luckily there is another useful data set relevant to generic domain valuation: comparable domain sales. If you can locate the records of other domain sales of similar type (industry vertical and matching attributes), you can at least bracket the likely generic value of the target domain.  You can go to the sales history on DomainTools to look up this information.

Clearly there is no ‘right’ answer to domain valuation. However, the information above should give you a head start on thinking about how to approach this challenging endeavor. In addition, if you have already decided you want to sell a domain, you can simply put it up for auction at any of the many domain industry auction platforms and the ‘market’ will tell you what it’s worth.

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