NameSilo

Calculating domain name value

Labeled as question in General Domain Discussion, started by domix, Apr 27, 2017

Replies:
17
Views:
3,303

  1. domix

    domix Account Closed (Disallowed)

    Posts:
    177
    Likes Received:
    436
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. unmark

    unmark Established Member ★★★★★★★★★★

    Posts:
    338
    Likes Received:
    135
    You can use old but still very good Andrew Rosener’s formula.
    http://www.domainsherpa.com/andrew-rosener-mediaoptions-inverview/

    Andrew Rosener’s domain name valuation formula for calculating the full retail value of a .com domain name:
    (# Searches) x (% Click-thru) x ($ per Click) x (24 Months), with 24 months being a fair valuation time period for the domain name purchase.
    For example for 80% click-thru rate you will get: (8,500 searches) x (.8, for 80% click-thru) x ($1 cost per click) x (24 months) = full retail value
     
  3. domix

    domix Account Closed (Disallowed)

    Posts:
    177
    Likes Received:
    436
    Can you elaborate on click thru? sorry I could not get that. So I need to know the parking stats for name?
     
  4. unmark

    unmark Established Member ★★★★★★★★★★

    Posts:
    338
    Likes Received:
    135
    It's just rough estimation of how many people (% wise) will click if you were the number one spot. Not everyone will click of course but 80% sounds more or less right.
    Just use 0.8 in all your calcs (treat is a a constant coefficient). If you want, you can be more conservative and use 0.75
    Read Andrew Rosener Interview Raw Transcript (on that DomainSherpa page that I provided above), am more than sure you will find all answers there.
     
  5. biggie

    biggie GreenFriendly.com VIP ★★★★★★★★★★

    Posts:
    10,858
    Likes Received:
    12,269
    vaulating according to a fixed formula, will always have a flaw or variable

    therefore the conclusion will be false

    as intrinsic value, is not even part of the equation


    imo...
     
  6. domix

    domix Account Closed (Disallowed)

    Posts:
    177
    Likes Received:
    436
    If you have any suggestion to calculate domain name value, please share.
     
  7. atinc

    atinc Entrepreneur VIP

    Posts:
    2,001
    Likes Received:
    3,710
    Just developed one :xf.smile:

    Appraise.One

    Free and unlimited domain name appraisal service...

    See about section to see how it works : appraise.one/about

    Hope it helps (y)
     
  8. biggie

    biggie GreenFriendly.com VIP ★★★★★★★★★★

    Posts:
    10,858
    Likes Received:
    12,269
    since good names speak for themselves

    i'll often ask .... "hey domain name, how much are you really worth"?

    :)

    but seriously, i have no firm way of calculating, it's all on the spur of the moment and gut feeling sometimes.


    imo...
     
  9. domix

    domix Account Closed (Disallowed)

    Posts:
    177
    Likes Received:
    436
    I would like to know the parameters considered for evaluation.. basically the formula Estibot, Nokta etc use.
     
  10. Hypersot

    Hypersot Top Contributor VIP

    Posts:
    2,352
    Likes Received:
    2,772
    @domix
    there is no way to calculate a domain's value simply because it's not a 'product' rather than a piece of 'art'. Your level of skill is also a kind of 'art'.

    The better you are at your 'art', the higher the value of your assets.
    If you believe that any formula can provide you with an estimation then you're totally wrong as wrong is anyone that tells you likewise.
    Anyone that has succeeded in this business they have done so by being creative, innovative, smart, etc., ie. everything that an 'artist' needs to succeed.

    just my opinion ofc
     
  11. Hypersot

    Hypersot Top Contributor VIP

    Posts:
    2,352
    Likes Received:
    2,772
  12. DomainVP

    DomainVP Profile VIP

    Posts:
    3,569
    Likes Received:
    12,819
    I use a similar formula to Mr.Rosner. In fact, I used that formula before I saw his Sherpa article so I was happy to see that others in the industry saw it the same way I did.

    Mind you, the formula is great when it gives you a price you wouldn't mind selling at.

    As for CTR, an 80% CTR is almost unheard of, it's not impossible but for desirable keywords but it's not very common.

    Most media agencies account for a 10% - 30% CTR on any given ad campaign.

    Just be aware of that if you are going to use this kind of formula. The advice of @biggie is very true.

     
    Last edited: Apr 28, 2017
  13. Kate

    Kate Domainosaurus Rex VIP ★★★★★★★★★★

    Posts:
    21,115
    Likes Received:
    22,505
    How do you calculate the price of a Picasso ?
    How long is a piece of string ?
     
  14. urlurl

    urlurl Top Contributor VIP ★★★★★★★★★★

    Posts:
    3,054
    Likes Received:
    5,984
    best way to value a name would be looking at past related sales + comparing them to future trends
     
  15. Robert G

    Robert G Established Member

    Posts:
    167
    Likes Received:
    174
    i use this formula.
    5x - 100x what people are offering via email
     
  16. unmark

    unmark Established Member ★★★★★★★★★★

    Posts:
    338
    Likes Received:
    135
    Great article by Michael Keshen
    https://www.hover.com/blog/find-out-domain-name-value/
    I like his last 2 paragraphs:

    If you’re looking for a predetermined formula to calculate exactly what your domain is worth then, unfortunately, you’re out of luck. Appraisal services can churn out a number based on a complex set of criteria, but there’s much more to domain names than algorithms and search rankings. A domain exists in the wider context of the online and offline worlds, and all of their complexities and nuances will play a part in how much interest there will be in your domain.

    To figure out your domain’s value, you ultimately need to understand who your potential buyers are. What industry are they in? Is a website important for their business? How relevant is your domain? A domain is only as valuable as someone is willing to pay for it, so knowing what related domains are priced at, how sought after your domain is, and how much to reasonably expect a buyer to pay will help you arrive at the right number.
     
  17. mwzd

    mwzd Top Contributor VIP ★★★★★★★★★★

    Posts:
    8,959
    Likes Received:
    1,127
  18. unmark

    unmark Established Member ★★★★★★★★★★

    Posts:
    338
    Likes Received:
    135
    @domix
    Read this article by Chris Zuiker, it will definitely help:
    https://www.mediaoptions.com/domain-names/domain-value.html

    Six factors that Chris advises to consider while determining the value of your domain:
    • The general market for domains
    • How different types of businesses will invest differently
    • Size of the market based on the domains connection and meaning
    • How the domain will be utilized
    • Where and how you sell your domain
    • Using Google CPC as an indicator
     
    Last edited: May 1, 2017

Want to reply or ask your own question?

It only takes a minute to sign up – and it's free!
biix
  1. NamePros uses cookies and similar technologies. By using this site, you are agreeing to our privacy policy, terms, and use of cookies.
    Dismiss Notice
Loading...