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What to do when approached about buying your domain

How to set value? How to sell?

         

whipmeister

1:33 am on Jan 11, 2006 (gmt 0)



I have several questions:

1) Is closing with something like Escrow.com sufficient to insure a troublefree exchange with no risk of rip-off?

2) <edit>What motivates buyers?<edit>

3) We have no idea what a fair price would be. We spent the $15 or so to get a couple of appraisals. How can you get a ballpark on what it's really worth?

4) Saw the post on tax-treatment. Personally it sounds like a cap gain to me. Anyone experience any trouble with doing it that way?

Thanks in advance.

[edited by: Woz at 1:43 am (utc) on Jan. 11, 2006]

[edited by: Webwork at 4:23 am (utc) on Jan. 11, 2006]
[edit reason] Specifics, see TOS#13 [/edit]

Webwork

4:19 am on Jan 11, 2006 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



Folks, please reacquaint yourself with the Domain Forum Charter. [webmasterworld.com]

Remember: We don't post specific domains, we don't engage in direct or implied offers to sell or buy, and everything goes on the board. The forum is public so please don't post about "sticky me".

Webwork

4:33 am on Jan 11, 2006 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



Library thread about selling a website [webmasterworld.com], good for general guidance.

Classic thread about evaluating domain names for sale. [webmasterworld.com]

Domain appraisals are mostly a waste of money.

You can get off the cuff appraisals at many of the other "domain name forums." You will get a wide range of values: type-in traffic values based upon reliable traffic stats that you must produce; enduser values based upon speculation.

The ultimate test of value is the same as always: What a willing buyer is willing to pay . . so feel free to aim high in your asking price when in doubt.

How high?

Start with traffic stats for type-in traffic as a baseline. If you're getting 1000 type-in visitors a day and the PPC value of a click by one such a visitor is $.10 and 50% of your visitors would be likely to click through to an optimzied lander then you're looking at $50 x 365 x (some multiple of years, which varies widely).

If the domain is blessed with natural type-in traffic then you might as well run a PPC test by parking it.

Web/search traffic can be vaportraffic - traffic that is subject to the whimsy and caprice of the search engines - unless the traffic it's based upon high quality natural links from busy authoritative websites. If there is a volume of quality links that can increase the market value of the website.

Many domainers have used Escrow.com for transactions of all sizes. You might also use an attorney who specializes in domain issues to act as a trustee. You might also use a domain registrar that offers domain escrow services.

Buyers are motivated to inquire or make offers by their belief that they can get a bargain: If they can acquire a domain for a sum that represents a fraction of the PPC income the domain might throw off they will come calling. Don't be overly impressed when buyers come knocking. Instead ask yourself "Is there something more I could/should be doing to monetize my domain?" Chances are, the answer is yes OR your prospective buyers are just knocking at 1000s of doors of people whom the buyers believe might be a bit . . naive.