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Domain valuation is (almost) entirely arbitrary. Some one-word domains have pretty obvious value, eg: business.com, drugs.com, etc.
The value of most is determined only by the glint the registrant has in his eyes for them. Only you and yours can truly see/believe in what it can become. If the potential is evident from the domain itself then maybe you're a little luckier. Or maybe not. A decade or two ago, say you had asked what you should pay for names like eBay.com, yahoo.com or google.com back when they were only fanciful nonsense words, mere ideas, what kind of sarcastic replies would you have received?
I was in a lawsuit with a trademark infringer/cybersquatter. The domain was descriptive of a product, pretty generic. They claimed the domain was worth $15,000 and had an offical appraisal from one of the main domain auction sites to back it up. I went and registered 5 obviously equal or better domains at under $9.00 a pop, which shut them up right quick. Point is: any appraisal is valid, whatever.
If someone is already holding the domain, the price boils down to what you two can negotiate between yourselves. And that's almost totally without any objective guide...if US$100 pleases the seller, that's the price. If you absolutely must have that domain, and he doesn't want to sell, your price might be $500, $5000, $10,000 or $50,000 or even more until he finally lets go.
One more thing. PR is a joke. If your sole criterion for guaging value is the domain's Google PR number, then you're a lost sheep, dude.
As it was said above, there are many more *solid* criteria to look at besides PR.
It has been a long time since I have seen a PR5 site sell for less than $50. The $reg fee comments were a joke, right?
The original post is not far off of asking someone 'how long is a piece of string'
On the info provided, there's no way to know if the PR 5 site is a copied content site where its owner, has linked to it from his other site that's PR 6-7 or if so, whether that link remains or disappears once the current owner sells out.
Just my opinion, but under the circumstances presented, a suggestion of registration cost seemed downright generous to me.
[sorry, my english is not good...]
well, the domain name itself is not attractive (two word.com, strange combination)... you guys are right, i am solely looking at its PR value.
My plan is buy over the site, keep all the content unchanged, then add maybe some adsense, and most importantly, I add a one way link to my own websites (PR=0, three of them). So i can boost my sites' PR and maybe can be ranked better in google (i wonder?)
So is it worth to do so? does it work?
you may find a better forum for this subject at the
Dnforum-The place to talk, buy and sell domains.
There I have seen people try to use Nobel price winners, Miller / Modigliani to value existing SITES.
Free cash flow USD 10 000/year.
Price/earnings (free cash flow) = 10.
Price USD 100 000.
If value > price buy.
A domain name is in my view worth nothing in itself. It is the sites potential to generate future income (free cash flow) that is important. But that may depend on the domain name.
So my price is USD 0. If I like the name, I may pay the registration cost + some overhead.
If you search for deleted domains, you may find some great names, and you may get free pagerank. The previous site may still have inbound links that are not deleted.
Make it simple, as simple as possible, but no simpler.
In investing you only need two courses:
1. One to value a business.
2. Another to estimate the price of the business.
Then use the following algorithm:
You do not need complicated mathematical models.
Don't confuse me with facts. I have already made up my mind.