You have to remember that every name is unique.
and every geo name is special to its own field.
now lets see as sample
our now Glasgowshops.co.uk you would value that name lets say $300 if your lucky. Yes i know its a .co.uk.
now here is the stats for that site for last year.
glasgowshops.co.uk ip addresses 16559 page views 2284792
now after looking at the stats what price would you put on it now.
names like denverrealestate.com and denverdoctors will always get natural traffic if you have google addwords and even one business paying you say $40.00 a month you have covered your costs 1000 times over and rest profit

There are many different ways that domains can be looked upon when it comes to value. Many three letter words have absolutely no traffic value but are worth lots of money. I get tired of hearing about how traffic is the only way to add value to a domain names worth. Some of the most valuable trademarked names on the planet are not traffic names.

Take for example my favorite holding USeBiz.com, It has six letters and yet when you take all the letters and break them down this six letter .com name has 8 meanings. which one of those eight meanings will a buyer fall in love with?

It could be looked at as a geodomain from the stand point that US is definitely a geographical destination, and e-Biz can be the e-business service sector!

My point being: Words are tremendously complex, and can elicit many meanings and values. I personally think, and always have that words are too complex to fit any valuation formula. Domain names are words followed by an extension.

My strategy is to build a pricing matrix that takes into account the information listed below. This is easier said than done.

Detailed market and demographic data can be purchased for every city, town, state, business, market, industry, etc. But, compiling that data and running domains against a complex set of ‘pricing rules’ is complicated and expensive.

Another important factor – how motivated are the buyer and/or seller? I’m sure Rick Schwartz could have sold ireport.com many times in the last decade, but he was extremely patient and waited for the “perfect storm” to create “a pretty big payday”. The motivation of the parties is critical, but it is difficult to factor motivation in to a pricing formula.

Assuming we are working with a high quality, geo (city) + keyword, .com, no numbers or symbols, this is what I’m looking at:

1. Population – Taking into account that some smaller cities are suburbs of larger cities and should be priced in accordance with the larger city.

2. Transaction and lead value – In industries where new customers are worth more, the domain is worth more. BostonRealEstate.com is worth a lot more than BostonTan.com – simply put, there is a lot more money in real estate than tanning.

3. Type-in traffic – See David’s comments above.

4. Domain length – This is important, but I think slightly less so than we see in traditional domain valuations. Geo domains, by their nature, are longer than non geo domains and some big city names are longer than some small city names. I’m looking at word count more than at letter count – the fewer words the better. Assuming no excess descriptive words, population and transaction value trump length.

5. Comparables – Comparables are important, but difficult. There are a limited number of reported geo sales and the data is likely skewed by the fact that DNJournal reports primarily sales above $2,000. Watching the drops and buying my own domains, I know that this doesn’t cover the vast majority of geo/keyword domain sales. More importantly, we don’t know enough about the transactions that are reported. Have the buyers been end users, or domainers? BoiseIdaho.com sold last year to a real estate broker for $175,000 – how much would you or I have paid?

These five factors are the key things I’m looking at in trying to establish my pricing matrix. It certainly isn’t a perfect science. On one hand, I don’t want to be too low and leave money on the table. On the other hand, I don’t want to scare off potential customers with prices that are over the top. I DO want to sell some domains to end user every month.

I look forward to seeing Geo Tracker develop. Thanks for the blog, I’m reading and lurking everyday.

Enough, I need to go pack for DOMAINfest, my flight leaves at 6:00 am!

Mark Powell
GeoBroker.com

However, as GeoDomain owners learn to better monetize local traffic the population factor will become much more relevant.

For instance, Zimbabwe.com sold recently - a whole country GEO domain which sold for less than the worth of some USA city domains.

I think Geo domains are some of the easiest to put a price on as there are more objective properties attached to them, whereas a lot of domains are far too subjective, which is why appraisal firms basically appear as scammers.

A historic database of geo domain sales/purchases would be good. It should let you filter (or be separate tables) between those which are country (e.g. france.com), city/town (e.g. glasgow.com) and “thing-in-city” (e.g. newyorkdentists.com).

- Charles

For example, lets assume there is the domain, east.com.

it’s short, easy to type, remember - massively brandable, enormously generic… where do you begin with a name like east.com?

What would that be worth compared to say west.com, or north.com…

I’d say east.com is worth more than porn.com - another 4 letter generic, but long term - east.com has virtually unlimited appeal?

… or is that just my way of thinking?

east, west, porn… They’re certainly not all worth the same. And what about east.net? I think east.org is better - but how do you asses that?

And how does that relate to newyork.com - which is better? east.com (shorter, more generic - unlimited appeal) or newyork.com? fully targetted.

What about Californiahomes.com? That’s another category altogether, or texasaccountant, or ….

Where do you begin?

It’s a big question mate - I think step one would be to break it down, like locality.com is different to localityprofession.com

Taking locality as a factor… we then need a metric to estimate the value of that locality - like GDP * (GNP*Local Population/National Population) … for example??

Then some estimate of the value of that profession - like number of local businesses? ….

… also tourism is a major factor…

… are there any economists listening???

I think this could be a great topic to get people engaged in the forum???

Excellent question. I don’t know???

-rich