Originally posted 2016-07-19 15:22:05.
By Toshia Smith | www.amdlawgroup.com
In an interview with DomainSherpa.com, domain expert Andrew Rosener expressed the keys to evaluating the value of a generic domain name. In the domain selling market, no specific method exists to accurately and consistently value generic domain names. However, Rosener, who works as a consultant with multiple media properties and is the CEO of the domain name brokerage firm Media Options, attempts to explain the method to his madness.
Rosener’s methods only apply to generic domain names that have exact match keywords such as Lonely.com or Books.net; not brandable domain names such as iCloud and Google. In evaluating the value of domain names, he first starts off by using the Google Adwords keyword tool, specifically the exact match search, to determine how many times those keywords are searched. This helps him judge the viability of a domain name. One of his clues to a profitable domain name is if the match comes back from Google Adwords for an exact match of at least 1,000.
Next, Rosener looks at what it costs advertisers per month to keep the top spot in traffic on Google, better known as the CPC (cost per click). Essentially, his formula calls for the generic domain names’ number of exact Google searches to be multiplied by 80%; this percentage serves as an estimate of how many clicks it will get as the top spot on Google. He then takes that number and multiplies it by the CPC to determine the cost to click on the domain name on Google per month. He then multiplies that monthly CPC value by 24 months to determine the domain name’s retail value. The retail value represents the ideal value of the domain name rather than the exact value of the domain.
In addition to this formula, Rosener notes that judging the value of generic domain names involves many factors including the shortness or brevity of the domain name, whether a hyphen is present, etc. Similarly, he finds more value in domain names with .com, .org, and .net as opposed to .me and others of the like. One common mistake he notices is that people do not differentiate between the singular and the plural based on the Google exact search. Most people believed that the plural name was better; however, he bases his decision on what Google relays as the more searched name. Additionally, use of the singular or plural may be based on the type of message the user hopes to put forth. The plural is best for directories while the singular of a generic name has extreme value to someone who wants the exclusive use of that generic name; for example, Housepainter.com for someone who wants to be the most famous housepainter in the country versus Housepainters.com, which would have maximum value as a directory for users to search for housepainters in their area.
Rosener notes that Germany has the biggest online presence in the world, so, domain name sellers: adjust accordingly, use his techniques, and get started.
Image Link: https://smallbusinesscommunity.org/2013/04/09/buying-and-selling-domain-names