How do you value domains?
September 14, 2009
For one, thanks to the efforts of many domain pioneers there was really a lot of force generated in favour of, and an almost universal acceptance generated for a "multiples of revenues" approach. If a domain makes $500 per year, you could easily sell to someone for a multi-year rate of return, say 5yrs ($2,500). If someone wanted the name enough it might warrant purchasing it based on longer years worth of revenue, just to have the name. Of course, the more years you bid to, the less your financial return might become if your end-use for the name is to continue to monetize it in a similar way.