Available Domain Names - How Much Are They Worth?
Location, location, location! In Today’s real estate market the more desirable a commodity is perceived, the higher the value. Well, the same is true of “virtual” property within the domain name space.
Of the one billion individuals worldwide who rely on the Internet as a means to acquire information, conduct transactions and communicate with others, a majority rely on search engines, such as Google and Yahoo, to find Web sites that will provide them with the information they are seeking. However, with that said, there are also those Internet users who choose to bypass the search engine technology at their fingertips, and instead, type what they are looking for directly into their Web browser; a phenomenon that has been coined by Internet marketers as Direct Navigation. Such “type-in” traffic is a key component in determining the value of that particular domain name.
So the million dollar question domainers must ask themselves prior to acquiring a new parcel of virtual property – How much to pay for the domain name in question? Well, in theory the answer is - the present value of all future revenue expected to be realized from owning the domain name. So, if one invests in a domain that generates $100 a month from pay-per-click ads over a five-year horizon, one might argue that they should pay $X, where $X is the amount they would need to invest, in the given market conditions, to yield a revenue stream of $100 per month for a total of 60-months (assuming at the end of the fifth year, they can resell the domain for exactly the amount they purchased the name for five years earlier).
The most difficult part of building a solid portfolio and monetizing names is finding a good source to let you know what premium available domain names are ready to be purchased on a daily basis. I have found some fantastic premium names at www.dailydomaindrop.com and highly recommend this service for any serious domainer.
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