John Peacock wrote:
> I have been approached by someone who owns the same second-level domain
> in one of the CC TLD's wanting to purchase the .COM variant from us.
> How do I go about finding a fair valuation for this domain? It isn't a
> domain that is generically valuable, but it is of value to this other
> party. I don't want to be greedy, but I also want to get a reasonable
> return for our company.
While there are several place that offer appraisals, I always would say
that the value of a name is whatever the buyer is willing to pay (and
the owner is willing to say for).
Another common model is selling domains based on variables of their PPC
("parked") earnings, usually in the range from 5-10 years multiples.
Another way of looking at it, is taking a look at the traffic and from
there, try to figure out how much the buyer would be saving on PPC
advertising in order to attract a similar amount of traffic. In any case
if you are not doing so already, I'd highly suggest taking a closer look
at the traffic the name is getting.
> I have also received unsolicited offers to purchase the domain from what
> looks suspiciously like s domain speculator (almost identical e-mails
> from different e-mail addresses for different "companies"). This makes
> me suspicious in the extreme, but it may just be the other party making
> WHOIS checks through less than respectable resources. I would rather
> not have an open bidding war; I am inclined to sell it to the other
> party who has a legitimate use for the domain, but I want to find a
> price which is fair to both of us.
I'd be very careful with those, since there are many appraisal scammers
constantly making the rounds. It usually goes like this:
1) You receive an offer, sometimes even at quite a good price.
2) You respond.
3) The person sending the offer says that they/their business partner
would like an appraisal.
4) They suggest a specific appraisal company to you.
Hope this helps,
/Frank
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