Marketing Tools -- Doctor Ebiz Q&A

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The Value of a Domain Name

"I am wanting to sell my company. How do you know what a domain name is valued at?" -- Sandra Teal, SoldierTags.com

Domain names may have some inherent demand. For example, fish.com recently sold for an alleged $1 million. But few names are that good. I've purchased domains for between $250 and $1000. But average domain names are selling for $200 or less -- if the seller can get a buyer. The price is based solely on demand.

Of course, the least expensive domain is one which is unregistered, available through a registrar. GoDaddy (www.wilsonweb.com/afd/godaddy.htm) is my hands down favorite registrar for low price and good service. I moved all my domains there last year.

But if you can't find an unregistered domain, check out AfterNic.com, the Internet center for domain name trading. There you can get an appraisal of your domain name, search for available domain names in your industry, see lists of expiring domains with their Google PageRank and Alexa Rank, and talk to other domain traders in an online forum.

If you were buying a domain name, I would recommend finding half a dozen domain names that might work for your company -- that way you're not feeling desperate. Contact the owners of these "parked" domain names (that is, a "future website will be here" page rather than a real website). Mention that you've got half a dozen domain names in mind that you're interested in buying, if the price is right. Don't sound breathless. Get a grip. Then ask their price or make an offer. You may be pleasantly surprised. They may be just as ready to sell as you are to buy.

When you are selling an online business, however, the value of the business is based on the actual revenue that you are currently receiving, often verified by audited accounting records. The domain name doesn't add anything to the price unless it is quite exceptional and the buyer thinks he or she can exploit that name to make lots of money. You can learn more about selling an online business in our Web Marketing Today Research Room, "Selling an Internet Business" section. http://www.wilsonweb.com/cat/cat.cfm?page=1&subcat=mm_BizSale