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The value of a web domain is just like the value of a small business,
home or other personal or corporate property.

The difference is that the location is virtual instead of physical.
Some people judge traffic as a ways to determine valuation and this
would be true for a physical business as well. But how do you
put a value on your home? What if the domain is for personal use?

The value lies in what someone is willing to pay and what the owner
is willing to sell it for.

Sure there are formulas to determine earnings and traffic but I
don't see where this is any different from a physical business.
I guess the question for some folks is how to determine that sort
of stuff from something that is virtual. That leads me to say
if you don't understand it then perhaps you need to do some
reading or talking to a technician before you arbitrarily
fork over some cash for something you don't understand. That
would be like buying a house without an inspection.

Learn more about this author, Kenny Wilkinson.
Click here to send this author comments or questions.

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