Archive for the ‘Domain Valuation’ Category

The Psychology of Pricing

May 22nd, 2015 Comments off
For many domain investors negotiation and pricing is some of the trickiest and hardest things to learn. While there is no exact science, experience and a ton of previous transactions help the most, there are strategies you can employ to help with your negotiation and pricing. Mike stumbled across a very extensive article from Nick […]

As Many As 5K .Com’s Taken Away By Sealed Court Order By Verisign Including Some Of Mine

October 2nd, 2014 Comments off
Overnight I received a notice that several domain names I owned were transferred by a sealed court from Verisign without notice and of course without the court order. The domain names just were transferred by Verisign to another domain and are now listed for sale at another marketplace. Another domainer sent me an identical notice […]

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

February 1st, 2014 Comments off

Linda Fox wrote a piece today on about 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:

  • – $510,000
  • – $70,000
  • – Euro 300,000
  • (Danish summer house rentals) – Euro 87,500
  • (group travel in German) – Euro 59,500
  •  (hotels in Spanish) – Euro 275,000
  • (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. was sold by Mr. Berkens

Schwartz Sells 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

If your a frequent reader of 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





Domain Appraisal –

Domain Details:
  SLD: 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 about their appraisal check out the valuation we got from


Domain Apprised $55 USD


17 year(s)

appraisal accuracy 80%


Here is the appraisal from







Appraised market value as of 10/10/2013 for $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


Screen Shot 2013-10-10 at 4.33.58 PM











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


The Domain 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 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 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 sell for $500 or less and only 5% sell for $5,000 or more.

Over at 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: Releases 8 Million Appraisals For New gTLD’s Domain Names

June 26th, 2013 Comments off 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

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, 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 returned this message

We are sorry is invalid or unsupported domain name.

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

We are sorry is invalid or unsupported domain name

According to the value  the keyword, traffic to the domain name are among the factors they used to derive valuation.  However seems to give the most valuation to domain hacks like the above non-existent hand.bags, credit.card (of course 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: $91,500 $86,430
hand.bags $85,935 $85,620
paypal.card $85,027 $85,026 $84,858
hotels.usa $84,650
hotels.europe $84,608 $84,569 $79,125
credit.card $78,390 $75,040
craigs.list $65,003 $60,500 $59,620 $58,770
amazon.usa $58,240
yahoo.sports $56,780 $56,210 $56,170 $55,394 $55,145 $55,124 $55,072
amazon.movies $55,030
amazon.shops $55,019
car.rental $49,400 $48,300 $42,121 $41,818 $38,600 $38,518 $38,203
web.sites $38,000 $36,360 $36,230
los.angeles $34,640 $34,200 $33,490 $33,271
flowers.usa $33,144 $32,950 $32,882 $32,600 $30,910
affiliate.program $30,650 $30,360
frankfurt.airport $30,347 $30,311
hotel.california $29,950
web.server $29,900 $29,330 $29,320 $29,290 $28,840 $28,383 $28,350 $28,110 $28,024 $27,914 $27,737 $27,723
hotel.finder $27,711 $27,706 $27,701
hotel.canada $27,689
hotel.rates $27,686 $27,686
hotel.toronto $27,671
hotel.chicago $27,635 $27,626
home.finder $27,615 $27,605
hotel.dallas $27,588 $27,587 $27,584 $27,572 $27,572
insurance.usa $27,570
home.massage $27,569 $27,569
home.schools $27,569
hotel.manager $27,568
hotel.spain $27,542 $27,539 $27,539
hotel.web $27,538 $27,532
hotel.inn $27,532
hotel.texas $27,526
hotel.development $27,523 $27,519 $27,517
hotel.italy $27,502
home.dallas $27,501 $27,425 $27,239
watch.movies $27,100
new.york $26,500
greatwallof.china $26,101 $26,000 $25,569
web.master $25,220 $25,000
insurance.rates $24,900 $24,830 $24,661 $24,390
web.development $24,320
loans.canada $24,174 $24,114 $24,111
loans.centre $24,070 $24,060
loans.mall $24,056
loans.companies $24,056 $24,052 $24,050
loans.rates $24,036
loans.toronto $24,034
loans.australia $24,034 $24,033 $24,033 $24,030 $24,028
loans.home $24,025 $24,022 $24,022 $24,019
loans.india $24,018
loans.usa $24,017
loans.houston $24,014 $24,012 $24,012 $24,011 $24,011
loans.california $24,010 $24,010 $24,005 $24,005 $23,990
web.mail $23,870 $23,707 $23,660 $23,461 $23,390 $23,250 $23,169 $23,156 $23,150 $23,088 $23,005
insurance.card $22,989 $22,918
insurance.companies $22,847 $22,808 $22,775 $22,759 $22,751
insurance.sales $22,688
insurance.lawyers $22,665 $22,660 $22,640 $22,634 $22,631 $22,628
cars.canada $22,623
insurance.florida $22,622 $22,614 $22,608 $22,608 $22,606
insurance.australia $22,603 $22,602 $22,602 $22,598 $22,597 $22,592 $22,592
insurance.canada $22,588 $22,583 $22,577
web.links $22,576 $22,576
cars.australia $22,572
insurance.ireland $22,570 $22,567 $22,566
insurance.plan $22,566 $22,566
web.designs $22,565
web.advertising $22,563 $22,563
cars.price $22,561
cars.auctions $22,560
insurance.journal $22,560 $22,560 $22,560 $22,560 $22,559 $22,558 $22,558
insurance.job $22,558
cars.ireland $22,555 $22,555 $22,555 $22,554 $22,552 $22,552 $22,551
cars.usa $22,551 $22,549 $22,549 $22,547
web.pages $22,547 $22,547 $22,546 $22,546
web.corp $22,546
insurance.india $22,546
cars.sales $22,546
cars.rental $22,545
insurance.plans $22,544 $22,544 $22,544
cars.mexico $22,543
insurance.attorneys $22,542 $22,542 $22,541 $22,540
web.hotel $22,540
web.marine $22,539
insurance.forums $22,539
cars.images $22,538 $22,538 $22,538
web.home $22,538 $22,538 $22,537 $22,537
web.card $22,537
insurance.times $22,535 $22,535
web.plan $22,535 $22,535 $22,535 $22,535 $22,535 $22,535 $22,534
insurance.association $22,534 $22,534
insurance.prices $22,534 $22,534 $22,534
web.village $22,533
cars.prices $22,533 $22,533
insurance.history $22,532
insurance.factory $22,532 $22,532 $22,532
web.india $22,532 $22,532 $22,532
web.kits $22,531
web.gear $22,531
cars.houston $22,531
cars.companies $22,531 $22,531 $22,531 $22,531 $22,531 $22,530
web.japan $22,530
insurance.sites $22,530 $22,530 $22,530
cars.quotes $22,529
cars.outlet $22,529 $22,529
web.test $22,529 $22,528 $22,528 $22,528 $22,527 $22,527 $22,527 $22,527 $22,527 $22,526
insurance.toronto $22,525
insurance.consultants $22,525 $22,525 $22,525 $22,525
insurance.america $22,524 $22,524 $22,524 $22,524 $22,524 $22,523 $22,523 $22,523
web.movies $22,523
web.videos $22,523
cars.videos $22,523 $22,523
cars.service $22,523
insurance.central $22,522
insurance.california $22,522 $22,522 $22,522 $22,522 $22,522 $22,521 $22,521
web.factory $22,521
cars.japan $22,521 $22,521
insurance.magazine $22,521 $22,520
cars.toronto $22,520 $22,520 $22,520
web.production $22,519
cars.oil $22,519 $22,519 $22,519 $22,519
insurance.research $22,519 $22,519 $22,519 $22,519
insurance.test $22,519
cars.europe $22,519 $22,519
insurance.finder $22,518
web.course $22,518
insurance.corporation $22,518
web.computers $22,518 $22,518 $22,518 $22,518
cars.books $22,518
web.products $22,518 $22,518 $22,517
insurance.portal $22,517
web.tool $22,517
web.internet $22,517
cars.sites $22,517 $22,517 $22,517
web.auctions $22,516
cars.spain $22,516
web.agent $22,516 $22,516 $22,516 $22,516 $22,515
insurance.texas $22,515 $22,514 $22,514 $22,514 $22,514
web.europe $22,514 $22,514 $22,514 $22,514 $22,513
cars.motors $22,513 $22,513 $22,513
insurance.houston $22,513
insurance.corp $22,513
cars.wholesale $22,512 $22,512 $22,512 $22,512 $22,512 $22,512 $22,512 $22,512 $22,512
web.society $22,511
web.shirt $22,511
insurance.atlanta $22,511
web.times $22,511 $22,511
insurance.centre $22,511
web.solution $22,510 $22,510 $22,510 $22,510 $22,510 $22,510 $22,510 $22,510 $22,510 $22,510 $22,510
insurance.service $22,510 $22,510
web.signs $22,509
web.italy $22,509
cars.mag $22,509
insurance.massage $22,509 $22,509
cars.electronics $22,509 $22,509 $22,509 $22,509
web.usa $22,509 $22,509 $22,508 $22,507
cars.centre $22,506
cars.texas $22,505 $22,505 $22,502
insurance.home $22,501
insurance.chicago $22,500 $22,200
car.hire $22,000 $21,540 $21,200 $20,850 $20,532 $20,500
shopping.mall $20,250
air.canada $20,110 $20,040


You can watch a video on explanation of its valuation of  new gTLD’s here: Aftermarket Sells 34,132 Domain Names In February

March 1st, 2013 Comments off 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 which sold for $37,500

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

2/1 - 2/28 $37,500 $18,000 $16,500 $15,000 $15,000 $14,500 $13,500 $12,995 $12,500 $12,02 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… Launches New Domain Appraisal Tool: Here’s Some Comparisons

January 23rd, 2013 Comments off

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

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, helping website owners make decent choices in estimating the value of a domain name before buying or selling it. 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 and Sedo’s Domain Value Indicator tool.”

So here are a few test domains that put through and (DM) 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 a (domain sold last week by Mike Mann for $40K)

DM value $5,055.56; Estibot $41K (now adjusted for the sale price) DM $484,000; Estibot $7 Million DM $21.00$117,000 DM: $754K Estibot $5.5 Million DM: $423,000 $11K DM:  $103,000 $57,000 DM: $411K $2,500

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

DM appraised at $1,995,726.95 appraised 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,’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.… Downgrades From AA To B: Introduction of .uk TLD “Would Massively Destroy the Value of Existing Domains

November 13th, 2012 Comments off, downgraded  its rating for 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 decided to change the .uk rating

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

Domainindex has also issued an Investors Warning for and .uk TLD, and “believes the introduction of the .uk TLD would massively destroy the value of existing domains” and in fact Nominet´s announcement already inflicted harm to the value of 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 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 recently sold on 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)…