Domain Valuation – How to Price and Sell Domains


– We’re talkin’ about how to
price and sell domain names here on “The Journey.” Today on “The Journey”
we have a special guest, Joe from GoDaddy, why don’t you go ahead and introduce yourself to the audience. – Hi everybody, as he said I’m Joe, I work in the aftermarket,
which in my opinion is one of the most exciting
places to work at GoDaddy. I’ve been there for more than 10 years, done all different things, it’s great, you get to
meet all different people from all over the world, and you get to find out if
you’re sitting on a goldmine. – Right on. So Joe is obviously the domain expert, which makes perfect
sense for today’s topic, of how to price and
sell your domain names. Let’s just jump right into it, talk about why it’s important to know how much a domain name might be worth. – You know I, one of my favorite shows is “Antiques Roadshow,” I love to watch it.
– Oh yeah, love that. Right, all the like, the
hidden gems that you find. – And the best part is the end, when they reveal, what is it worth, right? What do they think it’s worth. It’s important to know, they
say for insurance reasons, or other things, for your antiques, but for your domain,
it’s even more important, because either you own one and you wanna know how to value that, or maybe you’re interested
in starting a new business and you wanna go purchase a new name, and you wanna make sure that
you’re paying a fair price. – I know like, most people,
we have those, like, late night just, ideas and you go out and buy
a bunch of domain names, I have spent far too much money
on those late-night domains, my catalog’s gettin’ out of control. How do we find out how
much our domain name might be worth? – Oh there’s a couple really good tools that are out there for you to use. There’s a site called namebio.com and that tries to keep all
the historical sales of names, so you can go look for
comparable names to yours and find out what did they sell for, what did they actually, you
know, go for on the open market. There’s other sites like estibot.com or GoDaddy has a domain
valuation tool that you can use, and that will give you an estimate of what they think the
market value of that name is. – Yeah, and so I saw that
when I was registering my last domain name, it
had, I did my search, I saw it was available and
then it said, “it’s cool, “it’s estimated at this price
because of this reasons.” Is that something new we’ve
kind of been implementing? – It’s something we’ve been
working on over the years and we, we look at a
lot of different things. It uses AI and machine learning and it tries to figure
out comparable sales, it also looks at things
like, how short is the name, how memorable is the name,
how brand-able is it, and then it looks at what
people are looking for in a name so that they can have businesses
that people can easily find and then they can use that to make money. – Right on. So if I use that tool,
whether it’s EstiBot, NameBio, GoDaddy’s valuation tool, is that the end-all-be-all price? So if I get that price,
like, am I gonna be able to actually sell it for that price or what does that process look like? – It’s just an idea, it’s a tool, it gives you another idea of
what your name could be worth, but I think one of the
best ways to find out what your name is worth is to get a name that
you’re familiar with, something in your industry that you know that market really well. So for instance, if
you were selling lights and you knew that the
average lighting customer that came into your store was gonna spend 1500 dollars, right, then what would that name do
that you’re gonna purchase for your advertising budget? How many people could you bring in and how many more sales do
you think you would expect if people could remember your name easier, find you, use word of
mouth with their friends to be able to bring more business in? Those things all add value to the name. – That makes perfect
sense, it’s kind of like, just real estate in itself, right? Like, the better property
you have near the city, near amenities, the more
expensive that property is gonna be, the better the domain name, brand-able, the right market, the more profitable it’s going to be. – And also, you brought up brand, it brings up a really good
point, brand credibility. So if I had lighting.com,
that’s a great name and it, you know it says to the market,
“Hey this person’s serious, “they own lighting.com, they
must know a lot about lights.” If I own Bob’s Lights down the road.org, it might not be as, you
know, brand authoritative, so the brand authority also adds value. – So talk us a little bit more through, like the brand authority, like what makes, you gave us a little bit of example, what really makes a brand,
a domain, authoritative versus one that may not be? – I think one that resonates with people, so one that you can easily remember, and one that looks legitimate. You know there’s a lot of concern about online fraud or things
that happen, you know, as we’re shopping online, if you have a name that
resonates with people and that really, you know,
is a great, credible name, that’s gonna bring in more business for you.
– Absolutely. Domain names can be
priced at almost anything, I know, I can go online and say, “My awful domain name is
worth a million dollars,” and no one’s gonna buy it, how do we actually, like, figure out the best practice of valuing
it and determining that value? – Some of the best practices
are really, you know, just concrete things that you can look at, like the length of the name. Usually the longer the name is, the less value it has. So the shorter the
name, the more valuable, because it’s easier to remember. And also, it’s usually easier to spell. – Is there like, a certain limit we should try to keep under? – Most of the sales that we
see historically happening, are 15 characters or less. – And I would imagine dashes and numbers devalue the domain name? – Yeah, it just makes it harder to pass the radio test, we call it, so if you were to say,
“Go to Lightsonline.com” but that’s “lights dash online.com,” people don’t remember that as easily. – Yeah, a couple years ago, there was just a plethora of new GTLDs, those extensions on the
end of the domain name that were released to the public and that we’re still adding
more and more and more, so now there’s not only
like the .com, .org, .net, there’s like, .blue .ninja, dot like literally almost anything, right? Do those play into
anything, with like, SEO or the value of the domain name, is it better to do that, or
what does that have to do? – With the value of a name, it’s really what the business
is gonna benefit from that owns that name, right? So using a new TLD or a new GTLD, some of those make
perfect sense for people, and Google has said that, you know, they’re gonna show up in SEO results, the same as a .com, or
any other TLD would, so from a branding standpoint, if you think that it’s something that people can easily remember and use, then it’s gonna have value. – Joe do you have a, like a fun extension that would actually be
relevant to the aftermarket? – Sure, I think one of
the fun ones is .games, I know that free.games and math.games, that’s done really well,
gotten a lot of traffic. There’s home.loans, which
sold for a lot of money, so there’s opportunities as
long as the front of the dot and the right of the dot
match up, the SLD and TLD, and make sense, like
free.games or home.loans, then you can potentially make
a good profit on those names. – Yeah there’s a, there’s
a site that I used to use when I used to just randomly buy domains, expireddomains.net, you heard of that? – Yes I have it’s a great resource. – I Use it all the time and basically, it shows you all the domains that just dropped off registration or they let them lapse, and
you can go and pick ’em up and it shows a ton of information, like when it was first registered, and a bunch of other stats and you could possibly use that
if you’re a domain investor and you wanna look for another resource to buy some awesome domains. – Yeah and one of the great
things about expireddomains.net is it shows what other TLDs are taken, and usually if there’s a lot of other TLDs that are taken in that same, so if it was home.loans and
home.com and home.net and .org and they’re all taken, it means
a lot of people are thinking that that name is a good name, because it’s registered so widely, and the more people that
think it’s a good name, the more valuable it’s likely to be. – Joe, what if, we’re
just completely lost, like I know I have a bunch of domains, but I might be a little lost of how to, whether it’s selling my domain or if I’m looking to buy domain
names, where can I get help? And the audience, mostly me though? – I think if you wanna sell your names, the best place to go, is to
try and talk to a broker. You can look at those
automated appraisal tools we talked about earlier, but to really get somebody
who’s in the industry and knows the industry well, they can give you up-to-date advice, and give you, you know, personal advice based on your names. If you’re gonna sell a name,
that’s the best place to go, and also if you wanna buy a name, we offer domain broker service at GoDaddy, there’s other buyer brokers, and what they’ll do is
they’ll give you an idea of what the name that you’re
trying to purchase is worth, what the fair-market value is, they do it day in, day out, they’re really in touch with the market, and they can help assist
you in getting a fair price when you make the purchase. – That is a ton of great information, but before we wrap things up, do you have any last
minute words of wisdom for our audience and myself? – Sure, I think if I were to start trying to buy and sell names, I would do two things. I would start really slow. I think one mistake that people make, is they buy a lot of names
before they really understand what’s valuable, what’s not, and that can cost you a
lot of money up front. And the other thing is, to buy names that you know the industry. If you sell guitars, then
you should stick with names that are related to music or guitars, that you know the audience,
and you know potential buyers. You might know what this
would benefit, you know, another business, a competitor, yourself, and then you can gauge
the value a lot better than if you’re just buying random names that you think might be valuable. – Those were some awesome
last minute words of wisdom, thanks so much Joe, for being on the show. – Thanks for havin’ me, great to be here. – And if you liked this video,
got some value out of it, go ahead and smash that like button, add a comment below if you’ve ever bought a domain name or sold one. Make sure to subscribe to this channel and ring that bell so you
get these episodes first. This is “The Journey,”
we’ll see you next time.

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