Most readers of this blog have, at some time or the other, indulged in a bit of domain speculation. And what better way to pass the time on a warm summer afternoon than speculating on the value of our portfolios and the riches awaiting us on disposal?
But how do you value a domain?
With physical assets such as houses, sale prices of neighboring properties provide a reasonable guide. With other asset classes such as gold and shares, very definite markets exist within which prices are constantly fluctuating. With intangibles like domains and websites however, it’s a little trickier. The old adage that it’s worth only what someone is willing to pay for it is all very true but … it doesn’t help you put a figure to the online property.
That’s where the various online valuation services come into play. There are paid ones, yes, but there are also a lot of free services. So you just head on over to one of those and have each individual domain in your portfolio valued at the speed of your average broadband, right? Wrong!
A detailed valuation report at SitePoint explains just how these services demonstrate the art of being free and still being a con.
Quite simply, nobody can put an accurate value to a domain or website as the price one buyer is willing to pay for it could differ quite considerably from what another would. The best way to test the market is in a competitive auction. Even that isn’t 100% efficient as the auction is viewed only by a small selection of buyers. There is one site that monitors sale prices and tries to predict value based on what sites similar to yours have sold for. That’s your best bet for getting a close enough picture. For further reading, try this site that provides a lot of useful information on buying and selling websites and domains.