Appraisal
Model- A brief explanation of how your domain
is valued…
- Marketability
- Name Length
- Brand Recognition
- Development Value
- Dot. Value
- Traffic & Revenue
- Industry Strength & Position
- Is this a name that is catchy and easy to remember? Do
you have to spell it for someone or explain the grammar?
Marketability:
The marketability of a name is among the most important features
of the domain name due to the perceived use of the name in
the market. Companies look to brand themselves using their
Internet addresses and therefore look primarily to the names
that will give them the competitive advantage.
Ultimately the overall market potential for the name and
its ability to drive traffic and revenue to the business entity
using it derives the value of a domain name. If the domain
name is well defined and the targeted market segment is easily
identified by the name alone, this makes the property extremely
marketable and thus highly valuable. Particularly if the domain
name is positioned in a strong industry segment. (Again, domain
names marketability and branding potential is a very subjective
criterion).
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Name
Length:
Short and sweet is generally best. Single, recognizable words
are considered better than multiple words. The shorter the
better as less letters means it’s easier to type and
remember. Number of words will reduce the score.
- 1-5 characters = Excellent
- 6-10 characters = Good
- 11-15 characters = Fair
- 16 + characters = Poor
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Brand
Recognition:
Brand recognition is key to the evaluation process. Simple,
familiar words are generally more attractive than complicated,
hard-to-spell words and short, catchy names in attractive
industry segments are also very valuable.
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Developement
Value:
The value of a property is based on the ability to use the
property. When looking at the development value of a domain
name, can this name be built into an instantly recognizable
site, whose name describes its content?
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Dot.
Value:
The market gives far greater valuations to Dot.com’s
than Dot.net’s, Dot.org’s and any one of several
other major TLDs.
At this point, the Dot.com extension is the reigning king
and easily commands much higher valuations. Only the Dot.com
extension receives an excellent rating in this category. The
others range from good through poor.
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Traffic
& Revenue:
The basis for any successful operating website is it’s
ability to generate business. Websites that are receiving
traffic are certainly preferred over those without traffic.
Sites producing revenue are even more attractive. The bottom
line is the number of visitors a site generates each month
is a major factor in determining a domain names value.
Total
Hits Per Day:
- 5,000 + = Excellent
- 500 – 4,999 = Good
- 1 – 499 = Fair
- No Hits = Poor
- Industry Strength and Positioning
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Industry
Strengh and Postion:
The size of the e-commerce potential varies greatly from
industry to industry. Some industries have enormous potential
for e-commerce business transactions, as evidence by the tremendous
growth of the number of Internet companies around the world
in many sectors, including financial, music/entertainment,
communications, etc. Positioning within the industry will
impact and possibly reduce the final score.
Top 10 Categories (by ranking)
- Business Services;
- Telecommunications;
- Financial Services;
- Entertainment/Music;
- Software;
- Retail;
- Healthcare Services;
- Medical Devices;
- Consumer Services;
- Biotechnology
With the expanding interest in other domains such as .us,
.tv, .ws we have taken the time to develop appraisal standards
for these new forms of "internet real estate". We
can and will appraise all types of domain names.
- Why do I need my domain name
appraised?
- What are the Appraisal
Criterias?
- Why use our appraisal service?
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