homepage Welcome to WebmasterWorld Guest from 23.22.217.122
register, free tools, login, search, pro membership, help, library, announcements, recent posts, open posts,
Become a Pro Member
Home / Forums Index / WebmasterWorld / Domain Names
Forum Library, Charter, Moderators: buckworks & webwork

Domain Names Forum

    
Self Domain Appraisal – The do it yourself test
Figuring out my domain's value
Lisa




msg:688842
 8:54 pm on Jun 12, 2002 (gmt 0)

I have outlined 13 metrics to judge a domain name in a self-appraisal.

1) Marketability
2) Phone Test
3) Name Length
4) Brand Recognition
5) Development Value
6) Dot Value
7) Site Traffic natural
8) Site Traffic by Search Engines
9) Industry Strength and Positioning
10) Search Engine Popularity
11) Grammatical / Linguistic value
12) Revenue Generating
13) Comparable sales value

-----------

1) Marketability
How many parts make up the name?

A part is classified as a word, a hyphen, or a number.
Example.com has only 1 part, the word “example”.
JoeTheFisherman.com has 3 parts, the parts “Joe”, “The”, and “Fisherman”.
Joe-Fisherman.com has 3 parts, the parts “Joe”, “hyphen”, and “Fisherman”.
1Fisherman.com has 2 parts, the parts “1”, and “Fisherman”.
eFisherman.com has 2 parts, the parts “E”, and “Fisherman”.

1 part award 100 points
2 parts award 10 points
3 parts award 2 points
4 parts award 1 point
5 parts or more award 0 points

2) Phone Test
Try giving out the Domain Name on the phone. How does the domain name sound on the phone.

Does the domain use a hyphen or a number?
Do I spell out a number inside the name ex: (“one”)?
Does the domain use a miss-spelling at all?

If the answer to these questions is all “no” then multiple current score by 5.
If the answer to any of these questions is “yes” then divide current score by 2.

3) Name Length (doesn’t include the length of “www.” or “.” or the ending extension)

Find the highest rule that applies.

If 1 part and the name is less then or equal to 8 characters, then multiple current score by 6.
If 1 part and the name is less then or equal to 15 characters, then multiple current score by 3.
If 1 part and the name is less then or equal to 19 characters, then multiple current score by 2.

If 2 parts and the name is less then or equal to 10 characters, then multiple current score by 4.
If 2 parts and the name is less then or equal to 16 characters, then multiple current score by 3.
If 2 parts and the name is less then or equal to 19 characters, then multiple current score by 2.

If 3 parts and the name is less then or equal to 12 characters, then multiple current score by 2.

4) Brand Recognition
Do people know what the site does even before they even go there?
Either through the meaning of the name or by advertising.
An example of advertising is everyone knows Microsoft.com or ATT.com.
Normal people will need to use the domain meaning to score on this point.

If name has Brand Recognition then multiple current score by 3.

5) Development Value
How much work as been put into Developing the site?
Just a Splash page then multiple current score by 2.
Something more then a Splash page then multiple current score by 3.
Has the domain ever hosted a website that received more then 1000 visitors a day then multiple current score by 25.

6) Dot Value
If .COM extension multiple current score by 3.
If country extension multiple current score by 2.
If country extension is now generic no bonus (example .CC, .TV, .WS)

7) Site Traffic Natural
10-39 natural type-ins multiple current score by 4.
40-100 natural type-ins multiple current score by 8.
100+ natural type-ins multiple current score by 25.
Natural type-ins means (Unique IPs without referrers)

8) Site Traffic by Search Engines
10-39 Unique IPs multiple current score by 2.
40-500 Unique IPs multiple current score by 3.
500+ Unique IPs multiple current score by 4.

9) Industry Strength and Positioning
Does the domain have a calling? If the domain has a targeted industry how crowded is that industry? Does the domain accurately and generically describe what it was registered to do. Here is an example, For a travel agent, FlyCheap.com is a score 3. For a travel agent TravelCheap.com is a score 7.

Describes generically the industry then multiple current score by 7.
Describes specifically something in the industry then multiple current score by 3.

10) Search Engine Popularity
How do the terms in the domain name rank in Search Engines?

“Great”, then multiple current score by 7.
“Good”, then multiple current score by 2.
“All Right”, then no bonus.

11) Grammatical / Linguistic value
Does it sounds correct? Does it read like a human normally speaks. For example: ShoppestMall.com, this sounds wierd. But ShoppingMall.com sounds correct. The plural form verses the singular form makes a huge difference.

If the name sounds correct, then multiple current score by 2.

12) Revenue Generating

Multiple yearly income of the domain by 2.5, add this dollar value to your final price.

13) Comparable sales value

What other domains have sold at that price. Is your name the same score?
Market analysis on your domain price is very important. Being able to justify your price against other domains selling price is key. Don’t do marketing analysis off of list price. Only selling price will work. To find prices of domains that have sold use Afternic or other domain auction sites.

The highest score possible is something huge like 6,615,000,000
Score doesn’t correlate to actual price very well, You need to use percentiles to figure out what the price is.

Total score:
Lowest = $15 (40 percentile)
Low score = $25-$40 (30 percentile)
Mid score = $100-$300 (25 percentile)
High score = $500-$1000 (3 percentile)
Extreme score = $1000+ (2 percentile)

[edited by: Lisa at 11:25 pm (utc) on June 12, 2002]

 

korkus2000




msg:688843
 9:03 pm on Jun 12, 2002 (gmt 0)

6) Dot Value
If .COM extension multiple current score by 3.
If country extension multiple current score by 2.
If country extension is now generic no bonus (example .CC, .TV, .WS)

what about .net and .org?

great post btw

also what about short domains?
if you had xxx.com or triplex.com I would think xxx would have more value even though triplex has less parts. Is this incorrect? Should there not be a bonus for domains with less than 4 letters.

Lisa




msg:688844
 9:19 pm on Jun 12, 2002 (gmt 0)

The selling price of a dot com is general 10 times higher then a dot net.
That counts don't lie either. There are 21 Million dot com and there are 3.5 Million dot net. No bonus for gTLDS other then .COM. I awarding a bonuses to country TLDs if they are not generic. The countries that I think most deserve this bonus are .DE, .UK, .JP, .US, .AU.

All though .NET has more then .CO.UK, .CO.UK still deserves the bonus because the buyer would be targeting English. .NET is unfocused and takes second place to .COM and would lead to extension/traffic bleeding if the owner did not already own the .COM too.

.ORG is generally the lowest priced extension. Except when it comes to acronyms and organizations. BUT, with the new extensions here. I think .BIZ is now going to be the whipping boy with the lowest value.

.INFO will have more value but not at this time.

topr8




msg:688845
 9:38 pm on Jun 12, 2002 (gmt 0)

superb post lisa, very well thought out, thanks.
great way to get a picture of the value of a domain.

can i add unquantifiable factor-X ...

which is someone actually really wanting the domain, from a sales background my experience is that sometimes people have an entirely irrational focus on a specific product when they want to buy(in this case it would be a specific domain name) this can cloud their judgement when making an assessment of value... great if you are selling!!!

another point worth making based on several posts i've read here over the last few months is that IMHO if you have just bought a readily available domain name (eg not one that has just been released in a so called "landrush") it is extremely unlikely, although not impossible, that it is worth anything more than you just paid for it... without a lot of value adding in terms of actually developing the site, and then what you are selling is a business rather than just a domain name.

DrCool




msg:688846
 9:57 pm on Jun 12, 2002 (gmt 0)

Well thought out Lisa. It looks like you have covered most of the bases.

sometimes people have an entirely irrational focus on a specific product when they want to buy

I agree here. One of my clients recently sold a domain for $35,000 that was only worth about $300 based on Lisa's evaluation methods. If somebody really wants something all rational thought goes out the window and they feed off of their emotions.

korkus2000




msg:688847
 11:11 pm on Jun 12, 2002 (gmt 0)

Since we are considering domain names as investments. IMHO I do think you should consider .net as a sleeper. Right now I do agree with you. In the future I don't. .COM is getting a psychological beating with the .COM crash and all of that. Microsoft is putting its marketing team to work on it. As Microsoft's .NET brand gets saturated to the common folk, I think we might just see a shift. A couple years down the line it may be prime real estate, but at the moment its demand is small. At the moment any .NET I buy I always get the .COM. You are right about the bleed.

ken_b




msg:688848
 12:27 am on Jun 13, 2002 (gmt 0)

How, if at all, would you factor in owning the .net domain as well as the .com?

Lisa




msg:688849
 12:47 am on Jun 13, 2002 (gmt 0)

When you want to promote the .NET extension because you own a Network or you are trying to play on the Microsoft .NET thing you should own the .COM version too. That way you can redirect the .COM miss-typings back to the .NET version. It also helps you establish that your company owns that name. Like a trademark holder but it shows no one else plays with or uses the name. However this is a dangerous slope, because where do you stop. You get the .COM, then .NET, then .ORG. You think you are safe and own them all. Then they release new extensions. Now you have to own .BIZ, .INFO, etc... Hmmm, but why stop there. Get the .CO.UK, .DE, .US, and the other 250+ extensions.

Like Amazon, Google, Microsoft, and eBay they have gone after all TLDs. But this can cost thousands a year to do.

But the short answer is you can bundle them togethor and raise your price about 10%.

ken_b




msg:688850
 12:51 am on Jun 13, 2002 (gmt 0)

Lisa; Thanks. I bought both manes when I started this site, but have only developed the .com. So I was curious.

papabaer




msg:688851
 7:17 am on Jun 13, 2002 (gmt 0)

Excellent post Lisa! You've given me a lot to think about ... and to work with.

EliteWeb




msg:688852
 7:19 am on Jun 13, 2002 (gmt 0)

Nice little post, err long post. Reminds me of reading those quizzes in the girly magazine seeing how the girl ranked herself or me ;) so post yer scores so I can sneak a peak @ em ;)

netshooter




msg:688853
 2:50 pm on Jun 14, 2002 (gmt 0)

Nice post!
But I think traffic should get more scores.

edit_g




msg:688854
 1:00 pm on Jul 19, 2002 (gmt 0)

Interesting post.

However- I do tend to think that if you need a checklist to figure out if a domain is any good or not then you are probably looking at the wrong domain.

Marcia




msg:688855
 1:08 pm on Jul 19, 2002 (gmt 0)

Great post, excellent information there.

andrey_sea




msg:688856
 9:29 pm on Jul 19, 2002 (gmt 0)

Lisa,

Great post, very interesting and useful information. But I didn't get how to use your total score and percentiles?

Say I took a look at domain name and calculated its raw score as: 5,040,000 + $30,000 from (12) what is the dollar value of this domain name according to your metrix: x + $30,000 ?

x = ?

Thanks.

Lisa




msg:688857
 9:50 pm on Jul 19, 2002 (gmt 0)

Find domains with simliar scores. Or you could visit Afternic or other After-market sites. This scale helps you judge how close you are in value to a domain you see sell. Look for domains on both sides of your score.

Tapolyai




msg:688858
 1:23 am on Jul 20, 2002 (gmt 0)

I usually grab all three, .com, .net & .org names, and sell them as such.

hat factor would you suggest for something like this?

Lisa




msg:688859
 2:02 am on Jul 20, 2002 (gmt 0)

Generally I treat multi-domain purchases as a purchase for the main .COM domain. If they have the .NET and .ORG then its an extra 5% to 20% depending on .COM value. Generally the .NET and .ORG are not worth much beyond just saying you have them. If you see a name and every TLD is owned by a different person like the use of .CO.UK, .DE, .AT, .WS, .CC then you know the name is generic and maybe worth the full 20% of the .COM. Generally you can sell them separate and make more money then.

There has been 5,673,287 .NET domains in the world, currently there is only 3,596,808. So you can see people are just dumping the .NET domains. That is a 40% decline.

.COM once had 30,684,395 domains and now it too only has 21,302,566 domains. Only a 29% decline.

The ratio looks like 7 .COMs for every .NET, meaning that 1/7 of the people also registered or feel the need to register the .NET too.

nuevojefe




msg:688860
 2:25 am on Jul 20, 2002 (gmt 0)

I am thinking about buying [example-e.com], by the standards Lisa gave, its worthless. But isn't there some value to be given to a simple easy to remember domain, especially when seen in printed ad. form, or on a business card? In this case [examplee.com] would be kind of stupid, even though hyphens aren't desirable, it would seem sometimes they could be better for conveying a certain something.

Helpful Info, BTW.

Jeff

[edited by: Lisa at 2:34 am (utc) on July 20, 2002]
[edit reason] no specific names please, example meaning a short two letter name [/edit]

Lisa




msg:688861
 2:52 am on Jul 20, 2002 (gmt 0)

Every domain is different, this evaluation method is only meant to assist in the process of self-appraising your own domain. If you are going to buy/spend more then a thousand dollars on buying/selling a domain I suggest you seek out a paid appraisal for more accuracy. The name you mentioned only had 4 characters. So all in all that is really easy to remember and market.

nell




msg:688862
 12:05 pm on Jul 21, 2002 (gmt 0)

It seems to me there are two prices for any given domain name. The first is a price if someone approaches you to buy it. The second is when you just put it up for sale in the open marketplace. The first would most likely fetch the top dollar, the second would most likely be negotiated down to a much lesser price.

My point is, I have doubts that one could use Lisa's method of placing a value on a site, run out and put it up for sale on the open market and expect to get anywhere near that price.
On the other hand, Lisa's equasions seem great to put a price on a site if someone happens along and approaches to buy it.

Brett_Tabke




msg:688863
 3:31 am on Feb 3, 2006 (gmt 0)

*cough*

a classic eh?

stu2




msg:688864
 2:20 am on Feb 4, 2006 (gmt 0)

I agree here. One of my clients recently sold a domain for $35,000 that was only worth about $300 based on Lisa's evaluation methods. If somebody really wants something all rational thought goes out the window and they feed off of their emotions.

How on earth does one recognise to ask for $50,000 (my assumption) and settle on $35,000 for a domain worth only $300 (ok, maybe a flawed valuation).

Presumably this was a private sale from a direct approach from a buyer? Else, where do you sell a domain like that? tdnam? :) hehe.

FromRocky




msg:688865
 4:27 am on Feb 4, 2006 (gmt 0)

Did she post it last month and someone gave the wrong date? Yes, it's a classic!

trader




msg:688866
 5:19 am on Feb 4, 2006 (gmt 0)

A lot has changed since this thread started in 2002. At that time Lisa said org is last in value. No way now as org had a big value increase vs others, org is clearly second behind com. Plus org is not mostly valuable to non-profits but excellent for commercial sites also as it denotes a feeling of trust to the website. Net has declined big time.

Also 2.5 times income back then was very low by today's standards. Most experts are now saying 4 to 8 yrs income is about right. A 164 million $ recent sale was for 8 times yrly income according to press release data. The media is even talking about 30 to 40 times income being good possibilities in some cases and getting more common.

AhmedF




msg:688867
 6:02 am on Feb 4, 2006 (gmt 0)

While good advice, the true barometer is always 'whatever one is willing to pay' :)

Global Options:
 top home search open messages active posts  
 

Home / Forums Index / WebmasterWorld / Domain Names
rss feed

All trademarks and copyrights held by respective owners. Member comments are owned by the poster.
Home ¦ Free Tools ¦ Terms of Service ¦ Privacy Policy ¦ Report Problem ¦ About ¦ Library ¦ Newsletter
WebmasterWorld is a Developer Shed Community owned by Jim Boykin.
© Webmaster World 1996-2014 all rights reserved