Using Comps to Buy Domain Names

A while ago I discussed buying domain names to capitalize on industry trends and recent sales. For example, VideoShop.com sold for $30,900 last week, so very similar names like VideoStore.com or VideoShops.com would be great buys in a similar price range, as the sale of VideoShop.com could be used as a comparison point to make a profit (if you are buying for flipping purposes). Using relevant sales for comparison and valuation purposes is a great idea, and it’s a good way to pinpoint the value of a very similar domain name.
However, people should be cautious to not go out and make stupid registrations to try and capitalize on these trends and sales. Recently, Pizza.com sold for $2.6 million at auction. Since then, I can’t tell you how many pizza names have been listed for sale on various forums and sales venues at ridiculous prices. Just because Pizza.com sold for $2.6 million doesn’t mean GetYourHotPizza.com or NeighborhoodPizzaPlace.com are automatically worth anything, and in many cases, they aren’t worth any more than the registration fee.
Understanding why a domain name sold and buying similar names for the same reasons is good. For example, names like PizzaShop.com and PizzaDelivery.com are great because they make sense. Simply appending a word to the front or back of “Pizza” don’t automatically make it a good name. When you are trying to capitalize on a trend, do some keyword research to see why the name sold, and try to find similar names. Just because a name sounds like another name or looks close to another name, it doesn’t mean it has similar value.

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Elliot Silver
Elliot Silver
About The Author: Elliot Silver is an Internet entrepreneur and publisher of DomainInvesting.com. Elliot is also the founder and President of Top Notch Domains, LLC, a company that has closed eight figures in deals. Please read the DomainInvesting.com Terms of Use page for additional information about the publisher, website comment policy, disclosures, and conflicts of interest. Reach out to Elliot: Twitter | Facebook | LinkedIn
  1. I used to work in the commercial real estate industry. COMPS is one of many tools investors used to buy and sell property.
    Just because the property next door sold for an particular price doesn’t mean that your property will sell for the same price.
    There are too many variables to valuate a property based just on past sales.

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