[Timby]

I own a few domains now, and I see people offering $xx,xxx for some domain names and such and I was wondering how someone arrives at a figuar for a domain name. Does one look at the potential of the keywords? or is it more people buying the domain because they have a particular product they could market easily on that domain? or what does one look for?

Thanks in advance.

[robert]

General Rule of Thumb

Forums & Blogs

3 to 6X revenue, meaning if you make $1 a month, figure $3 to $6 for the site. If you make $100 a month, figure $300 to $600 for the site.

Software Sites
If you have a custom software package, it's typically can get 6 to 12x revenue.

Directory
While a year or two ago, these ranged from 2 to 5x revenue, they can now go for between 4 and 8x revenue.

Game Sites
Short of a real game software package, those are the lowest on the list which range from 1 to 3x revenue if you are lucky.

Other factors that can inlfuiscence, high Page Ranking value, meaning anything a PR5 and above. A lot of back links, high quality design, so many factors. One thing that is not a factor in almost every case and people more often than not assume it is, would be what you spent on the site. I've seen sites were people spent $$ and made $$$,$$$ if not more and i've seen others where people have spent $,$$$,$$$ and made 0.

Ultimately, there are many ways to determine value and it ultimately comes down to what someone will pay but these can be general points.

[Timby]

Originally Posted by robert

General Rule of Thumb

Forums & Blogs

3 to 6X revenue, meaning if you make $1 a month, figure $3 to $6 for the site. If you make $100 a month, figure $300 to $600 for the site.

Software Sites
If you have a custom software package, it's typically can get 6 to 12x revenue.

Directory
While a year or two ago, these ranged from 2 to 5x revenue, they can now go for between 4 and 8x revenue.

Game Sites
Short of a real game software package, those are the lowest on the list which range from 1 to 3x revenue if you are lucky.

Other factors that can inlfuiscence, high Page Ranking value, meaning anything a PR5 and above. A lot of back links, high quality design, so many factors. One thing that is not a factor in almost every case and people more often than not assume it is, would be what you spent on the site. I've seen sites were people spent $$ and made $$$,$$$ if not more and i've seen others where people have spent $,$$$,$$$ and made 0.

Ultimately, there are many ways to determine value and it ultimately comes down to what someone will pay but these can be general points.

Ah thanks heaps for that robert. I think I need to establish my site more then and work out how much revenue potential I can get from it and then think about price. Sounds like a great guide though, thanks again.