How do you value a domain name?
 

I have a bunch of domains that were registered over the past 5 years or so. I registered them because they were germane to my business. I often get unsolicited offers to purchase domains but never reply.

What are they worth - how would you value them? Anybody have experience? Bought, sold etc. ?

They are worth what anyone will pay for them.

I've seen them go from $199 to multi-thousands if they are really good.

Seriously though there are sites out there that help do this, but generally it's based on traffic and not demand. Google it and you'll find some useful tips.

Their value is determined by how valuable they are to the purchaser.

A few years back we sign an IP.

I ask for the domain info so we can transfer it.

Am told that the one that we want is already taken so I set about getting in touch with the domain owner. First I do some research into how much traffic it generates, how long it's owned, is it simply parked or something that was active but really gets no hits.

I figured we could get it for $500.

Before I have a chance our IP partner calls and tells the owner, "hey, I created this product called "ideal name" that is going to be huge and generate millions in revenue. I want to buy idealname.com from you, how much do you want?"

Let's say it was a lot more than $500.

So as the seller you need to do your homework.