Determining the Value of Online Property

Friday, December 09, 2005

An example of how to profit with an eBiz
Online domains can be viewed much like property. When you set up your ebiz this will need to be taken into account. Certain domains such as cookies.com have intrinsic value because when someone is looking for cookies they may just type in cookies.com in their browser. These hits are called type-in traffic, and certain domains have worth because of that. There are several ways to determine the worth of an online property.

The first method in determining the value of a domain is by checking the type in traffic. There are a few tools that can help you with determining the amount of type in traffic your site will receive. One of these tools is keyword tracker. Another way to find out how much traffic the site is receiving is with proof of traffic reports. Some people will even have third party logging for their domain so they can prove traffic before a big sale.

The second way to determine the value of an online property is by checking for existing inbound links and search engine rankings. The importance of inbound links and search engine rankings is if you are planning on building a content page on this site. If a site has been around for a long time and has inbound links from other sites, when you start to build your content, the search engines will treat your site better. This is called the aging effect of Google. Basically, Google either considers sites to be similar to wine, or they are just shy.

The third factor when determining the value of a domain is to think about the marketability of a domain. Sure cheese.com will get a lot of traffic from people looking for cheese, however if you are selling golf balls, that domain will not help your eBiz too much. This can also be applied for 3 letter domains that

Now that I have given you the tools you need to determine the value of an online property, you should be able to go out and try valuating several domain names. Look on various message boards for domains that are for sale. Make up your mind on what you think this domain is worth, then watch what the others do. You do not need to buy the domain at first as you are just looking. This will build your skills in analyzing good deals. You will also want to check into each domain you are looking into buying. To do this, check out the 10 Due Diligence checks for buying a website.

Once you feel comfortable with your skills it might be time to try purchasing a domain or a site. When you are investing in a new market, it is important to start small. This way if you make mistakes early you can learn from them on a limited loss. Limiting your loss is important. It is better to lose $50-500 than to lose your entire retirement savings. If you are making larger transactions, you may want to look into escrow, and other Safe Payment techniques.