Wanted: Domain Appraisal vpn.co.uk

[nat0]

hi all I'm new to domaining so excuse me if any of this is basic/stupid/etc

i run a couple of reasonably successful businesses in the technology sector

over time i've aquired some domains one of which is vpn.co.uk

we've developed a quick site and are developing a new site for vpn.co.uk as we sell data networks for high value between £xx,xxx/annum and £xxx,xxx/annum

the potential revenue we will get seems to lend itself to this kind of development

my question is 3 fold:

1. what ball park value would you put on this domain stand alone
2. what is this domain worth with say £2m of long term (5yrs) recurring revenue at 60% gross profit
3. could this domain be worth more developed as some kind of defacto place (forum or affiliate site) where VPN users, buyers, businesses buy and sell virtual private network hardware (Cisco, Watchguard, Netscreen etc)

thanks in advance for all views/opinions

 

[julian]

come on.. are you serious..

 

[accelerator]

1. what ball park value would you put on this domain stand alone
2. what is this domain worth with say £2m of long term (5yrs) recurring revenue at 60% gross profit
3. could this domain be worth more developed as some kind of defacto place (forum or affiliate site) where VPN users, buyers, businesses buy and sell virtual private network hardware (Cisco, Watchguard, Netscreen etc)

1. See domainprices.co.uk to get yourself an idea of sales prices. Most serious domainers here won't tell you what it's market value is because they'll want to buy the domain off you.

2. If this is the profit you as a business has generated it gives you an idea of the potential of running a business in the sector. High profit potential often means good value for the domain, but there are many more factors than that. Domainers usually look at potential advertising revenue.

3. No. If it's high technology it's way too specialised to make a profitable exchange-type site and my view is that this wouldn't work at all.

Rgds

 

[nat0]

thanks

thanks accelerator

i thought that we were on the right track with option 2

logic says that a developed business on a decent domain is always going to be worth more

this said i raised the question as we get a lot of wider enquiries beyond 'i'd like a vpn service' therefore i was questioning how valuable the capture and channelling of the equiries we don't pursue could be?

in terms of value i was just interested - i paid 2.5K for the domain and it has already generated over x times that in bottom line profits - it isn't coming back onto the market therefore

 

[accelerator]

this said i raised the question as we get a lot of wider enquiries beyond 'i'd like a vpn service' therefore i was questioning how valuable the capture and channelling of the equiries we don't pursue could be?

I'm sure you could sell advertising space to non-competing complementary services.

vpn.co.uk is an excellent domain and demonstrates the power of the generic domain. As you own the generic, it gives you instant credibility and this will help you corner the market. 2.5k was an excellent investment.

A side note, you might like to make your DNS work so when someone types:

http://vpn.co.uk

it still resolves.

Rgds