How To Appraise

There is no widely accepted definition as to how to perform a domain name appraisal. However the following factors are usually considered in order to get to a fair and reasonable figure.

1. Similar domain names that have previously been sold.

2. Similar domain names that are currently for sale.

3. Keywords and phrases in the name.

Generic keywords tend of have a higher value. Domains in specific niches, such as gambling, financial and adult entertainment, may may sell for more than other types of domain names.

If a domain name has one or two words, then they may be worth more than those with three or more words.

4. The length of the domain name.
Shorter domain names typically sell better than longer domain names.

5. The presence of numbers and hyphens.

Domain names with no hyphens or numbers will be worth more.

6. The industry the domain name will be used in.

7. How much marketing potential the domain may have.

8. If the domain could be valuable to the international market.

9. The entity that would most likely buy the domain name. For example if it is likely that a large company will want to buy the domain name, the value of the domain is based on that fact.

10. Future potential the domain name.

Overall, an appraisal must be honest. An appraisal that is done properly will assist sellers in determining a fair price for the domain name. Depending on the circumstances, the work conducted by an appraiser can also be used as evidence to justify the price to a potential buyer.

What Is An Appraisal

A domain name appraisal is an evaluation of the value of a domain name. This evaluation is an opinion based on factors such as traffic, brand recognition, and marketability. There is no exact science, standard methodology or industry codes of conduct, for domain name appraisal.

Domain name appraisals are often performed by:

•    Dedicated companies
•    Industry experts
•    Domainers (both experienced and inexperienced)

Some charge a fee for providing an appraisal, while others are free.

Alternatives To Appraisal Companies

There are many alternatives to getting your domain name appraised by a dedicated domain name appraisal company. You can:

•    Post your domain name in industry forums and ask for an appraisal.
•    Post your domain in aftermarket sites such as Sedo and Afternic.
•    Use an automated tool such as Estibot.

If you do end up posting in forums, be sure to include as much detail about the domain as possible. The more information you provide, the more accurate the appraisal will be.

Thoughts On Domain Name Appraisals

There are a number of “schools of thought” in relation to domain name appraisals including:

•    Appraisals are a waste of time as they can’t possibly take into consideration all the factors to come up with an accurate figure.

•    A domain name is only worth what “the market” will pay for it.

•    Appraisals are a scam to con newbies (people new to the industry) out of their money and/or their domain name.