For $11,330?
icon32.png Posted: 24 Oct 2008 15:12

Recently I approached a domainer that was interested in selling his website Domainers are lured by the potential profits that can be earned from a single sale. Looking at the top 100 domain transfers for the year 2007, it's easy to see the attraction:

Here is the reply I received for my inquiry on and my comments.

Hi Wayne,

Thank you for your enquiry.

A search for "bird cages" shows approximately over 1,300,000 results from Google.

He assumes my interest in the name is for ranking purposes. It's a good guess, especially since I'm in the SEM business.

Names such as are very much in demand especially as there are more than 60 MILLION domain names currently registered.

Sadly, this is his only statement regarding the value of his domain and he makes no attempt to qualify his statement. I suppose that merely stating sites like his are in high demand might be good enough for some, but I like to see numbers. Don't tell me it's in high demand, show me the numbers. But he probably does not have any quailifying data. And pointing out how many domains exist, does not qualify his domain, in fact those 60m domains have nothing to do with the domain I e-mailed him about.

If you consider that just recently sold for $1,020,000, for $135,250, for $55,000 and $52,500 etc there have been many other 5 figure sales - I'm sure that our asking price could be considered an investment for a domain of this quality.

An old proverb comes to mind, it's a bit old and tired but in this case, it really does fit: "What's any of that got to do with the price of tea in China?" He is coming up with random domain sale prices, but none of them are related to the domain I'm interested in. This tactic really does not help him, if anything, I think it hurts his ability to sell. If I walk into McDonalds and ask how much for a buger, and the customer service rep begins to ramble on about how much cars, trucks, and credit card charges cost, I've got to wonder what's wrong with him… I mean if I'm asking about a burger, then I want information about a burger. has nothing to do with Who's that? And and Sure, they're related to animals, possibly even pets, but the site I'm interested in is about bird cages, I want information on bird cages, not horse supplies or fish.

If I did some research, I could qualify the prices for the sites he mentioned, like for example. One of the reasons sold for a million was due to the fact it's part of a team of sites aimed at gaining a huge piece of the pet market pie, that includes,,, and (okay I guess that's not really a pet) Wih just under 1 billion pages, the search term "fish" also has a much high competition rating than "bird cages" at just over 1 million. Likewise, the phrase "bird cages" is searched for an average of 135,000 times per month, but fish is searched for 13,600,000 times per month.

The price of this domain is £7,000 Great British Pounds or US $11,330 (close offers may be considered). This is a one off payment for the rights to the domain, however you will be responsible for paying the yearly registration (approx $30). For a currency converter for other currencies please see

11 grand eh? Hmm. He didn't even mention demographic or traffic data, or Google PR which can greatly improve the value of a site. Essentially he bought the site, parked it, then forgot about it and for that he wants $11,000? Okay, let's do the math, since he compared to let's see if we can succeed where he failed, let's see if we can qualify a price for this domain:

Site Competition Popularity Price 1,300,000 135,000 $11,330 96,300,000 13,600,000 $1,020,000

Ignoring the price, I'm going to divide the numbers by the numbers to come up with a value in percent. has a competition rating that is only .013% of and a popularity rating that is roughly .01% (.0099 but I'm rounding up). This means that in terms of google competition and popularity, is worth about .01-.013% of the website.

Looking at the prices, if $11,330 compares to somewhere between .01 and .013 of $1,020,000 then the price could be seen as a fair price in terms of search stats.

$11,330 / $1,020,000 = .011

Well how bout that. Maybe it is a fair price after all.

Please note:

Transactions are extremely straightforward, totally secure, and can be completed within 24 hours from start to finish. The sale of the name can take place in one of the following ways…

He then goes on to explain the various payment options I have. He seems pretty confident that he can get the sale for merely quoting me a price. I wonder just how successful this domainer might be.

Kind Regards,
Joshua Jaganath
NameGiant Ltd

Thanks Josh, I hope you don't mind me using your expertise as the point of this article. I would contest your choice to omit qualifying data in your quotes, but I suppose that is your choice to make.

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