What constitutes a fair price on a domain name?

Domain Name Appraisals/ Selling Price

[Fractal]

Hi Guys,

I have a question concerning the sale of a domain name. I heard, and read from some sites that if a company was to buy a domain name from you, a good way of evaluating the $$ value of a domain name is by the net profit during one years time in which the domain name would be in use. Does this hold any truth?

Regards

Fractal

[Webwork]

No.

Every domain is unique.

There are some earlier threads in this forum about evaluating domains. Dig in. There's a few people here with a depth of knowledge on the subject.

You might also visit the various domain name forums, where domains are their only focus.

[cabowabo]

It greatly depends on the industry and what the content is based of. If it is a service business, most business advisers will tell you to purchase the business/domain over a four year period, and each year you pay a portion of the retention of the business. That way, if the business does well, the former owner is rewarded (and you too), but if it tanks because he inflated the numbers, he won't get swat and you are protected. There are formulas available from a business consultant, or you can discuss with your attorney. Don't do this on your own. Hire representation so you don't get taken for a ride.

Cheers,

CaboWabo

[kodaks]

You may want to see if there are domain names in the same category as yours that are being sold. If there is, see how much they are going for. This may help you get a general idea on how to price yours.