Nameboy.co.nz - Valuing Domain Names

• More than 8 out of 10 New Zealander's are now online and using the internet weekly
• email is the number one form of business communication
• 7 out of 10 businesses succeeding online are getting  their visitors from search engines
• Research tells us that top online sites receive as much as three quarters of their traffic via Search Engines
• A great domain name has been proven to be an integral part of brand development, markeintg and publicity.

Conclusion: Having a great domain and being search friendly is fundamental to your online success.

We invite you to read through the following to help you assess a domain's value:

5 characteristics of high-performing domains

Domains Sold - Actual Examples

Key Points To Consider

Factors That Enhance or Devalue A Domain

Good Domains Make Your Financials Go "Cha Ching!"

Check out the domains we have for sale now or contact us to list your domain or website for sale

 5 characteristics of high-performing domains

1. Short and sweet. Domains with fewer characters tend to garner more traffic. One-word and short phrase domains are best.
2. In demand. Think about the commercial potential of your domain. Is your idea a common search term? Who is interested in the associated subjects? 
3. Clear apparent meaning. People should be able to guess what your domain name means. Put yourself in your site visitor's shoes. What would you expect to find on the site? If you're having trouble answering this question, you may want to run a Google search on the domain keywords to see what kinds of sites pop up.
4. Generic. Make sure that the domain name is generic and doesn't infringe on any trademarks. Not only is a trademark lawsuit costly and time-consuming, but registering a trademarked domain is a bad practice for the longevity of the domain monetization industry.
5. Appropriate TLD (top level domain). Domains ending in .co.nz and .com receive the most type-in traffic, and are the best choice for a TLD. 

   ---

 Domains Sold - Actual Examples 

 Key Points To Consider

1. Domain name valuation is a very subjective and often contentious
2. Economic factors as well as cultural / lifestyle trends influence pricing greatly (consider current music or movie launches)
3. Domain name trading is widely accepted overseas however the market is still emerging in New Zealand with a growing investors base now active including more savvy buyers who understand the importance of brand development and the impact on search engine rankings by having the right domain. In fact it is now not only normal to have a number of domains but in most respects is it essential and prudent to do so.
4. Domains which are nationally useful or widely used in business will always attract more interest
5. New Zealand is a niche market and prices fluctuate wildly

   ---

 Factors That Enhance or Devalue A Domain 

1. Domain name extension

<domain>.co.nz – most recognised and greatest market for
.net.nz - org.nz - .govt.nz - .mil.nz - .mo.nz are all associated with specific activities and may well be moderated.

2. The domain name v the website

Sometimes a domain name is valuable for the content and traffic a website is able to bring to it
than for other factors.

3. Length of domain name

Longer domain names are usually less valuable and harder for domain investors to sell, but there
are instances where this is not the case in keywords loaded domains.

4. Is the domain name marketable

Popular words and terms make a domain name more attractive to organisations particularly if it can be associated with marketing activities eg. Product launches or can be used to create a brand.
Is the domain name in demand ?
Some industry sectors (eg.travel, vehicle sales) will always create high demand.
Geography and national usefulness also present opportunity.

5. Easy to remember

Domain names must be easy to remember, easy to spell and easy to say (although periodically a mis-spelling is very successful).
Domain names need to be people friendly and not overly clever.

6. Number of words in the domain name

Few words is usually better however exceptions can arise around the use of key words or specific sayings eg. UsedCarsForSale.co.nz is a highly searched / successful domain name

7. Google Search And Key Words

Do people search for the words in the domain name? Is the domain name key word rich?

8. Does The Seller Have Statistics

If the seller has statistics to support the domain name or website such as search engine results, links etc then clearly it is easier to achieve a superior price.

9. Numbers present in domain name

Numbers usually lower the value of a domain name because it becomes too specific and not generic enough for most people to remember.
The exceptions may be when the number makes it easier to write or remember a domain for example the number ”4” versus the word “for”.

10. Hyphens present in domain name

Hyphens may lower domain values due to breaking up the domain name however this may be forgiven if the words are highly desirable.

11. Is the domain name misspelt

Misspellings are not usually successful, however periodically they can be - particularly around common transpositions.

12. Age of domain name

Maturity, past traffic, past search engine indexing and links matter - as does the desirability of the domain to business owners in the same market segment.

13. Domain name singular or plural

This small difference may result in different valuations and it comes back to intended use.

14. Comparable sales

This can be useful however due to all the other variables it may not be.

15. Patience

Prices can vary widely and it may require patience to find the right buyer at the right time.

6. Fair market value

Realistic pricing along with patience and a willingness to negotiate will always result in a successful sale.

 Good Domains Make Your Financials Go "Cha Ching!"

A good domain name has two specific functions:

• a) Bringing customers to your website;
• b) Branding, marketing and brand recognition.

If a domain name describes your product or service, or if it is immediately associated with your business, it has value. Why?

• Search engines use domain names as part of their ranking procedure. A good domain name will take your website higher in the search engine search rankings.
• Customers browsing the internet type in common domain names hoping to find a product or service.
• Customers will remember a simple and relevant domain name. Put your website address and email address on your business cards, stationary, vehicles, print advertising etc.

Valuation Example  - www.mermaidbar.co.nz

The domain name "Mermaid Bar" is for sale at $3000 and we know from google that

• over 500 kiwis search specifically for “Mermaid Bar” each month 
• Well over 40,000 kiwis search for the term mermaid

You only have to capture 30 new customers, who each spend $100, and the domain has paid for itself!  Where else can you achieve that sort of return on investment?

Valuation Example  - www.chickens.co.nz

Lets say you are in the business of farming or exporting chickens or even perhaps manufacturing related products and your turnover per annum is $500k

Say you spend $5,000 on purchasing the domain name www.Chickens.co.nz   Consider:

• Increases to the number of new visitors of direct traffic to your website (www.chickens.co.nz) who simply enter "chickens" into search engines
• PLUS the improvement to your search engine rankings due to the quality and relevancy of your domain;
• PLUS repeat business from an easily remembered brand nd email address eg. <yourname> @ chickens.co.nz ; 

Now consider the following :

1. New business increases (conservative 5% increase in new orders) - $25k per year - 500% ROI !
2. Repeat business will also improve due to the factors shown above

Your investment of $5,000 has earned you a whopping return of 500% in year 1

A great domain can help you achieve outstanding results for your business and astonishing rates of return on your investment.

Check out our domains for sale now - domains are a savvy investment.

"Domains have and will continue to go up in value faster than any other commodity EVER known to man." Bill Gates, Microsoft Corp