Originally posted by www.howtorentstocks.com
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It all depends. Its a massive market now and domains are traded evey day so there are a number of companies that offer valuations based upon a number of generic algorithms. Effectively though most valuations look firstly at the value of the generic name.
So one word domains are much better than say 4 words.
The shorter the better.
Does the domain specify a product, service or industry.
These appraisals can be pretty broad though, for example they may give a range of between 5000 and 15000 or 100 and 400.
So its up to the buyer and seller to determine which end of the appraisal you want to head towards.
After that you would start to look at the traffic that the domain has going to it. This is important because that traffic would normally have to be paid for via adwords or advertising of some description so if you are getting type-in traffic this is all free.
Next I would look at the cost per click of getting the key words associated with the domain from google adwords and possibly the revenue that could be generated from google adsense.
Once I had all that data I would decide on a price.
It's a toughy though because the domains are becoming more and more valuable every year as more people start to go online. Also my feeling is that developing the domain is a much more profitable exercise.
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