In this video, I will be showing you the premium domain name Social.org which is currently going for auction sale at Namejet.com. As you can see, with still a week to go, there are already 314 bids with the top bid reaching $3,700. This is probably due to the fact that Facebook is going for it’s IPO this year and expected to raise $5 billion.
Now if you also want to buy this domain name social.org for investment purposes, it is important to know how professional domainers value this exclusive domain name. In this video, I will be using the “Rosener Equation” which is discussed in detailed on a blog post by Michael Cyger from domainsherpa.com
The Rosener equation will be using 4 parameters to access a premium domain name:
- Local month search volume (US traffic) with exact search match
- Google Adwords CPC (Cost Per Click)
- Based on #1 Google Position, 35% traffic
- 12 Months To Recoup Investment
To get the valuation of Social.org, you will need to multiple all the 4 parameters. Based on my research, here’s the parameters:
22,200 (search volume) x $2.05 (CPC) x 35% x 12 mths = $189,420
However, this calculation applies to a .COM domain, so in our case, we need to give this valuation some discount. Also, if you are a domainer who just want to hold on to the domain in the hope that the value will appreciate in a couple of years, your fair value is only 10% of the valuation price above.
If you are going to build a business based on the domain social.org, than this could be a fair price (after some discount for a .ORG domain). If you have any other valuation mthods, feel free to share with our readers here.