True Domain Valuation
Posted on February 18, 2007 by
Adie 
Domains 
4 Comments
A question I often get asked is “how do I value a domain name?” This question is further complicated when dealing with domains that aren’t targeted specifically for one or two keywords. How do you put a value to a domain like Fantastic.com? When appraising websites at least there’s a basic template you can fall back on: monthly revenue x10-14. With domains there is no such formula. So how do you evaluate them?
It’s been a while since my last installment of Domaining 101, but just as I sat back down to continue working on the next segment (which will deal with the domaining aftermarket and valuation) I came across this amazing article up on DNJournal written by Dan Warner of Fabulous. Dan goes into great detail describing the most important factors that go into weighing domain name value: Brandability, Mindshare, Commerciality, Specificity, Realization, Immediacy, and Intent.
Consumers purchase domains for a variety of reasons. These unique motivating factors shape the value which is attributed to domains by individual buyers. It logically follows that a domain’s true value can only be attributed to a specific buyer at a particular moment in time. Following is a framework of primary factors that buyers commonly attach to each domain purchase.
This is by far the best article I’ve read on the subject of domain valuation, and it is definately worth the read for any domainer new or old: evaluation a domain’s value.
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