Yes, there are dozens of automated tools that provide domain name owners with appraised values. But the most important factors in the valuation of domain names cannot be measured by algorithms, not even the most sophisticated of them.
Keep in mind that every domain name is as unique to the owner as his name and brand. Many of the primary factors used in domain name valuation are intangible because their value is intricately tied to the buyer and seller’s unique needs and wants.
What Are These Intangible Valuation Factors?
We have all heard of stories about domain names selling for thousands, even millions, of dollars. Your domain name should be able to fetch a fraction of it even when it isn’t as good as the others – or will it?
There are more than 150 million domain names already registered – and counting due to the boom in the online market. There’s also the fact that the aftermarket sales’ turnover rate is just a fraction of 1% of the total number of registered domains. This is still plenty of data involved in the development of appraisal valuations but intangible valuation factors play a significant role, too. These factors include personal preferences and desires, the sellers’ requirements and the buyers’ budgets, and the relative value of money, among others.
Furthermore, several high-value domains have been acquired based on the buyers’ desires instead of based on the domains’ value. We can name hundreds of domains that have been privately acquired yet these have little resale value on their own although these have huge values to the buyers.
Domain names that sell usually belong to these major categories:
- • Investment Grade
- • Premium Short Domains
- • Specific Needs
Indeed, domain name valuation is part art and part science. The X factor in forming a reasonable value formation is comprehensive experience – and we at have more than 20 years of it under our belt.