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Appraising Value of Domain Name
Fortune Hunter




msg:3612854
 12:57 am on Mar 28, 2008 (gmt 0)

I had a client call me the other day and wanted to know if I would help him secure a domain name that was coming up for expiration. I checked it out and explained that since it expired the next day and had not been renewed there was a chance the owner would let it go.

I explained we could make him and offer and hopefully get the name. This brought up the discussion of how much to pay. My client had no idea of the value of the name and asked me to do an appraisal.

I know there are services like GoDaddy and others that offer quick appraisals of a domain name, but if you didn't want to use these services, if you preferred to do an actual appraisal yourself, how would you do it? What factors would you look at and how you would you apply a value or weighting scheme to them?

 

lammert




msg:3613127
 10:58 am on Mar 28, 2008 (gmt 0)

...since it expired the next day...

I don't see your point. If a domain is expiring, it is always cheaper to buy it with one of the drop services than to trigger the current owner that he may have gold in his fingers. Yust wait another day.

Fortune Hunter




msg:3614321
 7:17 pm on Mar 29, 2008 (gmt 0)

I don't see your point. If a domain is expiring,

Two reasons, first as you probably know when a domain expires it doesn't actually become available to buy right away. I have had to wait almost 2 months before an "expired" domain could be bought. I have also discovered that domain squatters almost always do a better job than me at grabbing these names the second they are available. I have even tried the "snap back" services offered by some of the registrars to get the names before the squatters grab them, but no luck I always seem to lose that race.

The second reason is this guy has probably 30 days or so after the domain expires to "redeem" it and I am not sure he won't do that sometime in the next 30 days.

I figured if we offered him cash for it he would redeem the name, take our offer and then transfer it to us and we wouldn't have to deal with the squatters or the snap back services that never seem to work. This brought up the debate about how much is the name actually worth and what goes into an appraisal.

Durham_e




msg:3615661
 9:10 pm on Mar 31, 2008 (gmt 0)

I agree with your approach Fortune Hunter for all the reasons you give. However, it is difficult to be able to appraise a name accurately without some idea of traffic. It is unlikely the current owner given the circumstances would have that information. Can you make a comparison with recent domain sales? does it have a bundle of links? Google PR? At least those are things you can check out without reference to the owner. Other than that ..... think of a number.

Fortune Hunter




msg:3616615
 10:17 pm on Apr 1, 2008 (gmt 0)

However, it is difficult to be able to appraise a name accurately without some idea of traffic.

Yes, that is something we were not privy to. I agree the things you cite would help determine value. For the sake of conversation, let's assume the items you cited were not available, then how would you appraise the name?

Durham_e




msg:3616648
 11:13 pm on Apr 1, 2008 (gmt 0)

Well given the situation there are two possible appraisals.

Appraisal One. What price should I put on the domain so the offer I make has some business rationale to me. To do this you could spend weeks examining likely revenues of caparable sites or domains. Its good to have some reassurance check along those lines but the real appraisal is two below.

Appraisal Two. What is the lowest figure I can offer that will entice the registrant to change the registrant details of the domain to mine.

Well for a start it should be more than what they have paid in registrations. They probably want to think that they have covered that. Then theres a premium. And as lammert said "to trigger the current owner that he may have gold in his fingers" . Of course this is now the tricky bit. Maybe techique is more important that money. Why not ring them up and have a chat. See what they have to say. An email giving a figure maybe too much a shot in the dark or one without a figure may sound like their boat has come in and expectations are raised beyond all reality.

Whatever course you take. Good Luck

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