Linda Fox wrote a piece today on Tnooz.com about Tour.com being put up for sale for $3million.
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
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 $1,350,000 Million dollar sale of eBet.com
If your a frequent reader of thedomains.com you know I’m not a huge fan of the online appraisal services but pretty surprised when I checked this domain today and found only 2 of 5 gave it a value in the five figures, not great for a 7 figure domain.
I think a fair conclusion would be based on these services Rick did pretty well for himself and that if you selling domain names based off of these services you might be leaving just a little bit of cash on the table.
Here is Estibot valuation of eBet.com
Domain Appraisal – ebet.com
|[ change ]|
|Category:||Other — Generic 4-letter|
|EstiBot Value:||$ 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:
Domain Apprised $55 USD
appraisal accuracy 80%
Here is the appraisal from DomainWorth.com
Appraised market value as of 10/10/2013 for ebet.com: $6,809
Best Split: ebet
Domain Length: 4
Creation Date: 11/6/1996
Alexa Rank: 23,547,973
Visits Potential: 27
Alexa Sites Linking In: 1
Moz Domain Authority: 7
Moz Links: 0
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
Free Instant Domain Name Appraisal Service. The Best Online Domain Valuation Tool!
The Domain ebet.com is valued at: $3,849.91 …
“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.…
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:
You can watch a video on DomainIndex.com explanation of its valuation of new gTLD’s here:
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|
freebies.org is a domain name that we sold.
Of the 34,132 domain names sold:
15,070 Buy Now…
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.…
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
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)…