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  1. #1

    How to determine the value of a domain provider

    Hello,

    I have a particular question.

    We have a company that provides domain names worldwide.
    At the moment we have 20,000 customers and 60,000 active domains.

    What is the value of a domain provider with 20,000 customers and 60,000 active domains?
    How can we determine the value of each customer?

    I hope someone can help me and reply to the previous questions.
    Thank you.

    Regards,
    George

  2. #2
    Join Date
    Oct 2003
    Location
    Germany
    Posts
    245
    We'll I guess it depends on your profit. Usual rates when webhosting companies are sold here in germany are between 1 and 1,5 times the yearly profit. It may be different in your market. Intresting meight also be the upselling potential for new services to such a big customer base.

    You should also pay attention to your local privacy policies as you are handing out personal information of customers when you sell a domain business.

    Are you ICANN Accredited or just a reseller?

  3. #3
    Thank you for your message.
    We are a domain reseller and we sell low-cost domains ($8-9 per domain).

  4. #4
    What is the difference between ICANN Accredited and just a reseller?
    If we are ICANN Accredited, the value of our company is higher?

  5. #5
    Join Date
    Mar 2009
    Location
    Thailand
    Posts
    46
    Do you buy your domains direct from the Registrars or do you buy via enom, resellerclub or opensrs?

    Cheers
    Chang

  6. #6
    Join Date
    Oct 2007
    Location
    Hong Kong
    Posts
    1,248
    You have 60,000 domains and do not know the difference between an ICANN-accredited registrar and a domain reseller??
    HostGamma.com | HostGamma Europe | HostGamma Asia
    USA, Canada, Brazil, UK, Netherlands, HK, Taiwan, Korea, Japan, Singapore and more

  7. #7
    We buy domains from Registrars, like Enom, Resellerclub and OpenSRS.

    We know the difference between an ICANN-accredited registrar and a domain reseller.
    What i would like to know is the following: the value of our company could be higher if we are an ICANN-accredited registrar than just a domain reseller?
    If the value of our company is 100K as a domain reseller, what could be the value of the same company if we are an ICANN-accredited registrar?

  8. #8
    Join Date
    Nov 2002
    Posts
    4,377
    Quote Originally Posted by petzsch View Post
    We'll I guess it depends on your profit. Usual rates when webhosting companies are sold here in germany are between 1 and 1,5 times the yearly profit. It may be different in your market. Intresting meight also be the upselling potential for new services to such a big customer base.
    As a quick ball park estimate I agree. If you are making $1 profit per domain as a reseller then that's $60,000/year profit and at least a $60-$90,000 valuation.

  9. #9
    Join Date
    Jun 2005
    Posts
    5,866
    He's not making any money on his eNom or OpenSRS domains if he's charging them out between $8-$9 each. Probably losing on them after financial charges are added in.
    Signature Under Construction.

  10. #10
    I say you're doing pretty good but in my opinion a domain provider's value is directly proportional to how popular it is. How much traffic it gets. The success of almost anything is gauged that way. I'd say Godaddy is number 1 so what you should do is alexa.com check it for traffic rank, then compare your alexa rank to that. That should give you an idea of your company's value as compared to a top company.

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