Traffic data is pretty good stuff, a measurable baseline at the very least. It's quantifiable, although I think the valuations are a bit funky right now. For example, should a domain be valued based upon the owner's revenue stream multipled by some number of years? What if the registrant's revenue stream is 50% of what some domain parking company is paid? I think the current model undervalues domains and domainers should be more aggresive in marketing to endusers, who are paying full PPC rates for clicks. The current model seriously discounts domain values when you consider the domain's potential value to an enduser/beneficiary of a PPC program - that is, the person paying for the advertising by the click.
So, what do you - not some generic or industry formulation - but YOU, what do you consider when considering buying a domain?
For years I've focused on the following:
Of course, the above criteria are also - at least to a degree - predictors of whether a domain will receive type-in traffic.
I have never given thought to valuing a domain based upon Alexa or links, which I consider to be ephemera and subject to manipulation or decrepitation, though I understand the modus operandi of those who have made their millions based, in part, upon misguided visitors clicking on stale links.
Type in traffic is a thing of beauty, to the degree that it immunizes a website from a dearth of search engine love.
Type-in traffic metrics aside what do you look at when buying a domain?
What is special to your domain view?
oh and brandability ...
brandability
Anything that is easily memorable, short and non-descript is brandable. Heck, a couple of guys from Uni branded a search engine pretty well using the word "google". They didn't even spell it right. And while we're about it, what about "eBay"? Short and non-descript. Nice ring to it.
Brand comes not from a name but from the users experience of a website and their interaction with it. It comes from the product.
Sure, certain domains are un-brandable due to being either too descriptive, or just plain nasty to say (ugly). Or have hyphens.
Pretty much anything else with the right product behind it is a runner.
Type-in traffic metrics aside what do you look at when buying a domain?
Nothing. If the product+name is not brandable, then type in traffic or keyword industry specific terms are the only value. There are thousands of 5 and 6 letter domains still available that sound great. I bought a fabulous 5 letter .com last week that had never been registered. It cost me £14.
That's what yours is worth to me.
Occasionally, when thinking of a new brand, you come up with a name that's perfect, and sometimes it's registered. I had one of those a few months back and picked it up for $250. I would not have paid more - plan B was simply to think of something else.
TJ
[edited by: Webwork at 11:34 pm (utc) on Feb. 13, 2006]
[edit reason] Ahem . . curb your enthusiasm Lobo. :) [/edit]
So that means we can use any old name (like google for a search engine) just so long as it's brandable? Value is in the content and not the name? No need to go for those expensive industry keywords anymore? (unless parking or reselling of course).
No, I think that's misleading.
If brand is the overall objective, you don't need to buy a domain from someone else. Make one up. Mis-spell something. Total cost : $15
If you're buying third party domains, then keyword .com really has the only value. It's either type-in or SEM value. Attribute no value to "brandability". You can brand absolutely anything with the right product. Here's another one for you - "Skype". Do you think they paid more than $15 for it? The overall objective was brand.
No need to go for those expensive industry keywords anymore?
Currently you can make a lot of money with them with little effort. That's why they're valuable.
In summary, this so called "brandability" adds no value whatsoever to a domain name.
Natural traffic generation however...
Of course, if you're buying a pre-existing website it's a different ballgame, but I assume this is a domain name discussion.
TJ
I'd agree, that if "brandability" is the main focus, that (within reason) we may as well go for a new registration and save ourselves a bundle of money. "Brandability" per se, is in the eye of the beholder, and doesn't add much in the way of value to the seller (of course there will always be exceptions).
For existing domains, I'd mostly go with what webwork suggests (bowing to his vastly superior knowledge on this subject). Of course even generic names are brandable, simply because almost anything is brandable. For my added contribution to the discussion, I'd add gut-feeling :) If I have a good feeling about a domain name over and above, or even despite of, the analytics, I often will go for the purchase. Of course, having a buyer lined-up before you purchase is another positive indicator, but not many of us have that luxury :)
