Domain Name Valuation

Well you can do what I always do, ask him what he wants for it, you may be surprised, maybe he needs money bad and will ask less than a few thousand dollars!

Originally Posted by RainMaker I have already begun a dialogue with the owner of this generic name because he is no longer using the name (his site has been down for a while). I already have a dot com variation of the name that adds only three letters. I want to make an offer on his name and am trying to find a reasonable way to place a fair value on it without insulting him or indulging him in wild superfluous expectations.

I do not have any experience in buying or selling domain names but I've been in selling situations that sounded very similar to your scenario. You might come out and just ask the guy, "What do you think is a fair price?"

I you come to agreement on price make sure you use ESCROW.COM, that is who we use, they make sure the name is transferred before the seller gets the money!

Originally Posted by SpeedRacer I do not have any experience in buying or selling domain names but I've been in selling situations that sounded very similar to your scenario. You might come out and just ask the guy, "What do you think is a fair price?"

I tried this approach, but because he was not actively looking to sell it (I approached him), he would not provide a price. He told me to make a reasonable offer.

Originally Posted by anthonycea I you come to agreement on price make sure you use ESCROW.COM, that is who we use, they make sure the name is transferred before the seller gets the money!

Thanks for this tip--I did not know how the actual transaction should transpire.

They have been making sure people don't get ripped off, just make the man an offer at half of what you really would pay at full value to you, that is always a good starting point and let him counter offer, if you don't hear from him in a week and a half, contact him again!

You must really want this name bad or you would just do what I mentioned in my prior posts!

It depends on what the domain is worth to you. This isnt really about how much $ you can save, it is about what you are willing to pay as "fair" value. I would not insult the person, but there is something to be said for leaving room for negotiation. A few hundred dollars is certainly not insulting I might start with that, if the domain is something worth a bit to you, but not plausably to many others. However if it is a really brandable name, and it is existing as a product or service it could be worth much more (But if it was, he would be using it right?)

I mean shoot, I would probably pay $20,000 for the domain www.adsense.com

I have told him that I would research how to place a fair value on the name and make him an offer that I felt was fair to both him and me. I told him I would share my methodolgy for the basis of my offer. I don't want to play games. I don't want to insult. I want the name--not at any price (not that I could afford that anyway). I'm not interested in stealing it and I cannot afford some pie in the sky price. I am a straight shooter. It would enchance my site and place it in higher credibility because this name is the generic name for my product and is the easiest to remember.

If I don't get it...business goes on as usual for me, but it would be a nice enhancement and if I could get it a price that I could afford, it would be worth it to me.

Webmaster, do you think I could make an offer using the link in my previous post as the basis for my offer?