DOMAIN APPRAISING
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"How much is my Domain Name worth?"
General Information:
Valuing Domain Names is much like valuing any piece of "intellectual property", in that price is a difficult question to answer. In short, a Domain Name is worth whatever someone is willing to pay, or sell it for. Domain Names have sold for prices ranging from $70 to $7,500,000.
In the physical world it is common for the success of a retailer or restaurant to be directly tied to their location. We've all heard the phrase, "location, location, location". On the internet there are no physical locations but rather sites are found and recognized by the address they choose. Many companies today are choosing the branding of their services or products based on their ability to secure the appropriate Domain Name.
Although Domains are valuable, ascertaining their exact value is more difficult. Because most of the selling and transfering of Domain Names has been private, very little documented valuation information is available to most domain owners. In virtually all cases of domain name selling, negotiation or bidding has played a major part of the eventual price. As the world has woken up to the power of the internet, we have seen dramatic growth in the volume of domain name trading and in the value of domain names sold.
Because it is necessary to have someone who values or sees value in the address before it can be sold, sellers often must wait for the buyer to "wake-up" to his or her need. Even pricing a domain name low will not necessarily speed a sale. You still need a potential buyer that sees a need. This could happen in 2 weeks or 2 years! Fortunately, public recognition of domian name value is just now developing.
Below are some parameters to consider when figuring the value of a domain name.
Keywords and length.
How short is the domain?
Does the domain contain keywords relating to a particular product or customer type(ie books)?
How many keywords does it contain?
Are the keywords in the domain the words that are most used when referring to the product or customer type?
How easy can it be remembered, spelled and or associated with the particular product or customer type?
Which domain extension is it: .com, .net or .org, or some other foreign country extension like .ca, .co.uk?
Commerce or market potential.
How large is the market for the products/services that the domain is geared towards.
The value and volume of the particular product/service that the domain is geared towards.
The value of business opporutnities and the number of potential customers.
The number and strength of the competitors that the domain is geared towards.
In general .net domain extensions will be valued about between 10% and 25% of what the .com version could be valued at. And in general a .org domain extension will be valued about 10% of what the .com version could be valued at. And it is our opinion that other foreign extensions like .ca, .cc, .to etc.., could be valued about 10% of what the .com version could be valued at.
These estimates all depend upon the right keywords and market potential as described above. These estimates are not applicable after a site has been developed or if other assets are being transferred, like trademarks or slogans.
Professional Domain Appraisals Get your domains appraised by an industry leading appraisal company for as low as $8.99 per name! This is a great way to discover the real worth of your names and add proven value to your investments.
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