Need help valuing a domain

[Jonathan]

Hi everyone, I purchased and developed a domain name (http://www.barcourses.com.au) a couple of years ago and then pretty much just forgot about it. The site is an informational one for bartending courses (RSA, RCG etc.) and is now ranking as the number one term in Google for 'bar courses'. It pulls in roughly 350 unique visits per month.

This may not sound like much, but if you consider that the majority of this traffic is HIGHLY targeted, it would be quite a valuable acquisition for many training companies, considering that the courses themselves start at about $85. Conservatively, this site could send them 50 leads per month, or over $4000 in revenue.

Anyway, I've decided that I want to sell the site, and I was wondering if anyone had any advice on:

1. What to value the site at (by the way, I have adsense installed but it's only generating $20 a month or so)

2. How best to approach the various companies with an offer to sell

Thanks!

 

[domainlover]

i would email the most obvious training companies stating that you had plans to develop the site/domain further but would now consider selling it.they would probably give you 1k for it is my guess

 

[Jonathan]

Hm, maybe I'm being over-optimistic, but $1000 seems like a steal. They could make that back in a month or 2 easily.

 

[paz]

Maybe you should sell advertising spots or try and set up an in house affiliate deal with a training company, keep your domain as it gains value and get some steady income at the same time

Also, 50 leads from 350 visits a month nation wide is fairly unrealistic. If a training company say in Brisbane buys the domain, how much of the 350 is from Brisbane? How many of them will convert to leads? Maybe 10% if it's a good offer.

 

[DavidL]

I think it's worth a lot more than $1,000.

IMO a pure generic name receiving type-in traffic should be worth at least 5 to 10 years revenue to another domainer. $20 x 12 x 7.5 (split the difference) = $1800. Then you have a site on it so it should be worth even more.

To an end-user, the value could be many times that.

Good luck!

 

[cbayley2001]

I'd put a directory on it, cold call a few providers in each major city, offer them free listings initially, generate a few hundred pages of content and listings and make the $ that is probably out there. I don't know if anyone else would do it as those that buy are after bigger fish usually.

 

[Rhythm]

Seems to be getting a decent amounrt of bidding @ netfleet as well. Las t I saw it was @ $1900+

 

[Jonathan]

Yep, not bad for a $30 reg fee and a few hours work. The key is finding the right end-user.

Ned definitely had a lot to do with it - if you're looking at selling a domain it's well worth giving him a shout.

 

[Billy01]

UK Standard

This is the crazy thing here in OZ very few people really get it do they?except people on forums like this.
Because its a one off and you'll never get it again the UK standard is 10 times earnings (for the right buyer). Based on your first calculation it seems extreme here in Oz but think about it in 36 months time.

 

[Billy01]

Net Profit from the Domain

Just to clarify that

 

[Jonathan]

Yeah, people in OZ don't get it yet.. but they will.

And by the time they do I will have several hundred domains in the four to five figure range ready to be sold to endusers...

 

[Billy01]

Lets go for it

There's plenty for everyone to go around we all have to start thinking what are they worth to the buyer in 36 months and don't knock them out cheap when nothing is left to be bought. I might know I built www.uknetguide.co.uk on a couple of milk crates originally.

 

[Jonathan]

Who says there's nothing left to be bought?

 

[Billy01]

Thats my point

There are loads of good domains left. Get in now while the gold rush is happening here. My point is look at what you have and then try to do the maths on a 3 -4 year projection.

 

[Jonathan]

Ah, gotcha...

Yeah, I guess since you're from the UK you know about Acorn Domains.. was looking at the recent sale prices and some of them just totally blew me away.

 

[Rhythm]

Ned definitely had a lot to do with it - if you're looking at selling a domain it's well worth giving him a shout.

Ditto.

 

[neddy]

Yep, not bad for a $30 reg fee and a few hours work. The key is finding the right end-user.

Ned definitely had a lot to do with it - if you're looking at selling a domain it's well worth giving him a shout.

Thanks for the opportunity and recommendation Cycloptik - it's been a great project for me - as well as a really good learning curve. Looking forward to concluding sale next week.

Cheers, Ned

 

[neddy]

Ditto.

Thank you also Rhythm!

Cheers, Ned