Payoneer
Jay Jay Atairu

How to Discover the Perceived Value of a Domain Name

Views:
2,563
Comments:
22
By Jay Jay Atairu, Nov 30, 2016
  1. ValleyRock

    ValleyRock Sales and Outreach

    Joined:
    Apr 10, 2016
    Posts:
    331
    Likes Received:
    393
    I’ve found a simple method that any domainer can use to discover the “perceived value” of a domain name - meaning what people associate with it. Knowing a domain’s perceived value can help us write a more intelligible and compelling sales pitch that contains more than CPC, searches per month, and past sales. It can also help our potential buyers realize the broad appeal and potential of a domain name that may even exceed their expectations, because some associations are less intuitive without the right context.

    According to Investopedia, the perceived value of a good or service is “the worth that a product or service has in the mind of the consumer.” When we speak of the perceived value of a domain name, we are talking about what a user thinks, feels, or associates with a domain name or word. Sometimes it may seem obvious, but keep in mind that words mean different things to different people, so we may associate one thing with a word, while an entire group of people might think differently. By researching what a domain name means to people in the real world, we should be able to estimate the overall perception of a domain name within society - its perceived value. By finding the perceived value of a domain name, we should be able to accurately uncover a market where that domain name has commercial value.

    In this article, I reference a few domain names. Please note this is not a promotion of these domain names. This article is strictly educational, and I only mention these domains as examples to illustrate the method that I am explaining.

    As I was perusing the appraisal section on NamePros, I stumbled upon an interesting domain name: liquids.co. The owner was seeking an appraisal for the domain name, and there were several opinions regarding the perceived value of the domain name. Initially, the owner had the domain pegged as a good name for a pesticides website. I felt like I could help the owner understand how people were interacting with “liquids” as a word, so I made a video showing how I would do this and posted it in the thread. However, I felt compelled to share this process with the entire community and not just the members that had a chance to visit the liquids.co appraisal thread.

    In order to find out the perceived value for a domain name, we must ask:

    What does an internet user think of when they see our domain name on a forum, blog post, or elsewhere?

    We can use Twitter to discover the perceived value of a domain and extrapolate from that into finding a market for that name.

    Here are the steps:
    1. Go to search.twitter.com

    2. Enter the domain name with spaces in-between words, rather than as a consecutive string. So, for example, to investigate malecologne.com, we would enter “male cologne” instead of “malecologne.” In the case of liquids.co, we enter “liquids” into the search field.

    3. Review the tweets that come up in the search results, and note the ways that people are using the word(s). With our example keyword, “liquids,” several people mentioned vodka and liquor, which are in a similar category.

    4. Depending on whether the domain is a single word or multiple words, we look for different things within the results.

      • If the domain is a single word, look at the context of the tweet. For liquids, we kept getting tweets in the context of drinking and smoking, particularly water, vodka, and vapor liquid.

      • If the domain contains two words, like “male cologne,” we also note the relationship between the words: Are they being used together? Separately? How do they interact with each other?

      • For example, one tweet about male cologne used both words together: “But d sad thing about buying male cologne is d male in my life wont let me use it in peace.” Another tweet used them separately: “If you're a 45-year-old male wearing a denim fedora, you probably shouldn't also be wearing cologne from Abercrombie and Fitch.” Take note of the context of the words and their relationship so that we can decipher whether people relate those words to each other, and if so, how they associate the two.

    Looking at Twitter's tweets gives us real world results for how people are interacting with the word or words in our domain name. Knowing that perceived value helps us determine how to pitch our domain name to end-users and/or other domain investors. For example, we saw that “liquids” did not have a strong association with pesticides, as the owner of liquids.co initially thought. However, the keyword was strongly related to vodka, so the domain name could presumably be pitched as a place for selling alcohol. People also used “liquids” to relate to healthy liquids. With that in mind, a pitch could be formed for a website that provides information on a variety of drinking/smart water, smoothies, and/or juices.

    When we are pitching a domain name, rather than simply posting stats on the domain’s history, we can share how people in the real world are using the words that exist in the domain. By pitching domain names within a market where people are actually using those words to describe something (such as vodka for “liquids”), and pointing to examples of real internet user behavior, we can make stronger pitches for our domains.
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. Next Article
    Ten Recent NameFind Sales. Who Bought Them?
    Previous Article
    Media Options Completes the Sale of Heart.com
  3. Loading...
  4. ValleyRock

    About The Author — Jay Jay Atairu

    Jay Jay Atairu is located in WY and has been a registered member of NamePros since Apr 10, 2016 with 22 followers and 331 posts. From those posts, 89 members have been thankful for them and 178 members have liked them.

    This is Jay Jay Atairu's 2nd blog post on NamePros. View all blog posts

    Home Page:
    https://twitter.com/mratairu
    Actions:
    Follow
  5. Comments (22)

  6. Kuffy

    Kuffy Established Member

    Joined:
    Sep 30, 2016
    Posts:
    2,166
    Likes Received:
    3,602
    I think the greatest value for liquids would be in the financial world, and would relate to liquid assets.
     
  7. biggie

    biggie Top Member VIP ★★★★★★★★★★

    Joined:
    May 27, 2003
    Posts:
    8,122
    Likes Received:
    6,125
    HI

    i think that, "if your name speaks for itself", then you don't have to "pitch it", throw it or toss it around.

    additionally, i think posting domain history, stats and all that, isn't important, especially when the inquirer only asks "how much".

    now if you're a solicitor and you're trying to "convince" unwitting recipients of your email, that they should buy your domain name... then maybe use some examples that are consistent with names that "have to be" solicited to get such interest.

    still, after reading your post, i don't see how you arrive at a perceived value, that can be translated into a dollar amount, for any particular domain name that applies your method.


    imo....
     
  8. Addison

    Addison Established Member

    Joined:
    May 21, 2016
    Posts:
    525
    Likes Received:
    1,178
    What is a 'Perceived Value'
    Perceived value is the worth that a product or service has in the mind of the consumer. For the most part, consumers are unaware of the true cost of production for the products they buy; instead, they simply have an internal feeling for how much certain products are worth to them. To obtain a higher price for products, producers may pursue marketing strategies to create a higher perceived value for their products.

    http://www.investopedia.com/terms/p/perceived-value.asp
     
  9. biggie

    biggie Top Member VIP ★★★★★★★★★★

    Joined:
    May 27, 2003
    Posts:
    8,122
    Likes Received:
    6,125
    domains, as is, are not products or services, in the same respect as tv's, cars or cable/internet service, and their "true cost" is the registration fee and the renewals.

    imo.....
     
  10. Donnyd

    Donnyd Business Member Business Account

    Joined:
    Apr 7, 2016
    Posts:
    43
    Likes Received:
    38
    Interesting article.

    So many ways to look at it. For myself if your looking at revenue domains only, you never sell for less than 2.5x annual and work on getting up to 5x annual.

    If it is a pure generic getting income then your talking 10x-15x or much more if like property.com, homes.com, etc.

    China investors are moving towards revenue names right now. IMO It is just starting, in a year or two your going to see some much higher multiples.

    Earning 25-30% annual is very attractive to investors but most right now don't want to pay more than 2.5x. That is going to change in the next 6-12 months.
     
  11. mr-x

    mr-x Acme Domains Business Account VIP ★★★★★★★★★★

    Joined:
    Oct 25, 2003
    Posts:
    2,338
    Likes Received:
    1,888
    Good idea if you want to tailor the sales pitch for different companies.
     
  12. Al Cohol

    Al Cohol Established Member

    Joined:
    Aug 12, 2010
    Posts:
    145
    Likes Received:
    212
    Twitter is a fantastic resource for domain owners to perceive value. I have been using it like the op has suggested for some time and has played a big role in my investment strategies.

    Great post op, you said it much better than I ever could.
     
  13. Addison

    Addison Established Member

    Joined:
    May 21, 2016
    Posts:
    525
    Likes Received:
    1,178
    I disagree. Products do not have to be physical items.

    For all intents and purposes, domain names are virtual products. We can call them intangible products too.
     
  14. Asfas1000

    Asfas1000 Business Member Business Account VIP

    Joined:
    Nov 30, 2014
    Posts:
    1,894
    Likes Received:
    1,688
    Great helpful article . Thanks !
     
  15. Addison

    Addison Established Member

    Joined:
    May 21, 2016
    Posts:
    525
    Likes Received:
    1,178
    101domain, Inc. agreed with me in a recent blog What goes into a Domain Launch:

    " Point being – there is only one of each domain name. It’s an industry, a market and a product unlike any other which is pretty cool!
     
  16. biggie

    biggie Top Member VIP ★★★★★★★★★★

    Joined:
    May 27, 2003
    Posts:
    8,122
    Likes Received:
    6,125
    Hi

    a domain name is an address to locate a website

    the website is the product.

    imo...
     
  17. Kuffy

    Kuffy Established Member

    Joined:
    Sep 30, 2016
    Posts:
    2,166
    Likes Received:
    3,602
    A website is a virtual product. It uses virtual webpages, and is based on a virtual IP address, with a virtual name to simplify access via the internet. You can purchase any of those items using Bitcoin - a virtual currency.

    That's my virtual opinion.
     
  18. frank-germany

    frank-germany Business Member Business Account VIP

    Joined:
    Jun 21, 2015
    Posts:
    4,116
    Likes Received:
    3,803
    there is no value of a domain
    there is only a value of a domain to certain person / company

    all you need to know is
    who is asking for a price and why
     
  19. Asfas1000

    Asfas1000 Business Member Business Account VIP

    Joined:
    Nov 30, 2014
    Posts:
    1,894
    Likes Received:
    1,688
    Well said.
     
  20. tourismtourism

    tourismtourism Established Member

    Joined:
    Dec 3, 2016
    Posts:
    11
    Likes Received:
    1
    Great helpful article . Thanks !
     
  21. Kuffy

    Kuffy Established Member

    Joined:
    Sep 30, 2016
    Posts:
    2,166
    Likes Received:
    3,602
    Selling a domain name is selling a dream, especially if the buyer is an end user. If you can help him to expand his dream, then you can icrease the percived value of a name to the prospective buyer.
     
  22. AGAME

    AGAME Active Member VIP

    Joined:
    Aug 29, 2011
    Posts:
    1,275
    Likes Received:
    1,324
    When the cost of other advertising media is considered (billboards, newspaper ads, TV ads, magazine ads, side of subway / train / bus / etc ads) some of them upwards of 5-figures per month, the limited eyeballs viewing those ads, the unknown traffic viewing those ads with little if any feeback...... the cost of a domain name and what can be done with it is very small. When it comes to trying to convert that prospect into a sale, I will usually offer to renew the domain for the maximum term to sweeten the deal a bit. This way they do not have to worry about renewal for upwards of 10 years and the cost to do that is usually less than $90 for dot com. I wont usually offer that for gTLDs unless I know it wont eat into the sales profit.

    Here is a great thread:
    https://www.namepros.com/threads/why-10-000-for-a-domain-name-is-still-cheap.928550/
     
  23. Kuffy

    Kuffy Established Member

    Joined:
    Sep 30, 2016
    Posts:
    2,166
    Likes Received:
    3,602
    What a great idea. :)
     
  24. Cdomains

    Cdomains Active Member VIP

    Joined:
    Oct 15, 2015
    Posts:
    2,011
    Likes Received:
    3,178
    True.
     
  25. Filip Severin

    Filip Severin New Member

    Joined:
    Nov 25, 2016
    Posts:
    20
    Likes Received:
    0

    What do you mean with revenue domains ? Can you give me one example of that kind of domain ?
    Best Regards
     
  26. ustradebitcoin

    ustradebitcoin Established Member

    Joined:
    Nov 19, 2016
    Posts:
    325
    Likes Received:
    74
    yes you are right
     
  27. kantha

    kantha New Member

    Joined:
    Friday
    Posts:
    24
    Likes Received:
    1
    Thanks for the reliable and Reality search for domain keywords.
     
Loading...