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View Full Version : General question regarding domain valuation.


NyteOwl
03-14-2006, 02:10 PM
I'm not asking for an appraisal or offers so I posted this here.

I have a friend that is getting rid of a couple of domains and told me I could have first offer on them. Here's the thing - I know that 2 letter .com/net/org are as rare as hen's teeth and so quite pricey but what about 2 letter .ca? or .us?

Any insights appreciated.

stub
03-15-2006, 07:24 PM
General answer regarding domain valuation... It's worth what a buyer is prepared to pay.

4solutions
03-15-2006, 08:58 PM
With no doubt, Stu is right.

In addition, I think that two letter .ca and .us domains could be VERY valuable depending upon the letter combinations.

For example, TO.ca would probably be worth more than OT.ca. On the other hand, to a company called Overland Technologies, perhaps the OT.ca or OT.us domains would be VERY valuable. A lot of this business is finding the right buyer for the right domain name.

Kind of like buying and selling antiques. One man's junk is another man's treasure. ;)

stub
03-15-2006, 09:45 PM
sex.ca and sex.us would be more valuable, I think :)

4solutions
03-15-2006, 09:50 PM
sex.ca and sex.us would be more valuable, I think :)You are a pervert, Stu! :eek: Shame on you!!

* Secretly logs into NewbieNudes.com *

Bladerunner
03-16-2006, 09:23 AM
Two letter domain names can be simply valuable from a rarity point of view alone.
They are the one exception to the rule about valuation.
A domain can only really be valued by what somebody is willing to pay for it.
Otherwise it's worth registration fee only.
With most 2 letter domains they are of course only worth at the top end what somebody will pay (as you cannot get a sale until somebody is willing to buy).
However I don't think you'll have any hassle getting a buyer for a 2 letter domain.

The company I work for recently took over another one.
I had to get all of their domains under my control here in IT.
One of the domains I moved over was a 2 letter co.uk
This dates back to before Nominet days and so is rare domain.
We are still using this domain name for redirecting at the moment, however we've already received some "would you be interested in parting with" e-mails so I don't think we'll have any kind of hassle selling it on if we so decide.

DaddyHalbucks
03-16-2006, 04:14 PM
It all depends on WHICH two letters.

But still, the .CA is probably only worth 10% of what the .COM is worth. For the .US domain, probably 5%. These are just rough estimates. If anyone has a real methodology or better numbers, please correct me.

If you have revenue or traffic data, it is much easier assigning a value.

Dave Zan
03-16-2006, 06:00 PM
It all depends on WHICH two letters.

But still, the .CA is probably only worth 10% of what the .COM is worth. For the .US domain, probably 5%. These are just rough estimates. If anyone has a real methodology or better numbers, please correct me.

If you have revenue or traffic data, it is much easier assigning a value.

Fancy meeting you here from dnf. :)

Domainitor
03-16-2006, 07:23 PM
Presuming DaddyHalbucks assertion that .CAs are worth 10% of their equivalent .COMs, and that .USs are worth 5%, I'm curious to know what people's feelings are about .NETs and .ORGs and how they stack up against the .COMs....

DaddyHalbucks
03-17-2006, 12:55 AM
Presuming DaddyHalbucks assertion that .CAs are worth 10% of their equivalent .COMs, and that .USs are worth 5%, I'm curious to know what people's feelings are about .NETs and .ORGs and how they stack up against the .COMs....

.ORG = 10-15% of .COM
.NET = 5% of .COM

BTW, I may have been overly generous in my assessment of .US.

.CA is clearly worth more than .US.

The unofficial country code domain for the USA is .COM.

DomainWorks
03-17-2006, 01:25 AM
An example of a valuable two-letter name: Monte Cahn, the chairman of Moniker, just sold the domain "on.com" for $635,000, acording to Domain Name Journal (http://www.dnjournal.com/domainsales.htm).

The .us and .ca valuations will improve over time, so those names are probably better for buy-and-hold than a short-horizon resale.