There are several different characteristics that make a domain name sellable. Let is first take a look at Google rankings. Many domain investors believe that Google rankings help boost the value of a domain name. The more search engine result pages (SERP) the better. Domainers who want to sell a name are encouraged to develop the site and seek Google rankings versus simply parking the name. However, developing the site may actually hurt your initial revenue abilities as compared to just parking the site. In the long run developing the site should pay off in the form of a higher resale value for the name.
Hands down, domain names with the .com extension continue to be the most popular and generate the most profit when it comes to domain name sales. However, there are several other acceptable extensions that are making money in the industry such as the .de and .co.uk names.
There are also some extensions that tend to be on the un-sellable end of the spectrum. For example, according to premium domain seller Rick Latona, the .mobi extension is one to stay away from. In a recent blog post, Latona said,
'Just don’t send me .mobi names. They aren’t sellable despite the sales reports. I firmly believe they are in a bubble and I’m not going to be stuck holding the bag.' Before investing in TLD’s other than com, make sure you do some research.
Revenue is also a good indicator of a domain’s ability to sell. However, it should be noted that this indicator is not reliable in all circumstances. For example, a site that draws $10,000 annually, a healthy revenue stream, is likely to sell at up to 10 times its generated revenue. Popular names that involve adult activities or gaming information also sell for anywhere between seven and nine times the domain’s annual revenue. But sites that draw smaller annual figures actually sell at larger multiples. This is because they are more affordable and therefore attract more potential buyers.
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