Understanding Potential Domain Valuations
Reviewing historic trends and valuations based on actual transactions can be helpful in establishing a valuation context and ideally a framework as well. Most domain properties derive value from traffic, quality of content, prominence of brand or demand for the product or service of the business.
The business of investing in generic domain names is akin to buying real estate. Some people choose to buy land in an area they think will be developed in the future, rendering it much more valuable. They are content waiting for months or even years before selling. Others will buy property and build homes, and they will either sell or lease them, building a residual revenue stream.