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Domain Evaluation and Appraisals Guide

Located in User Guide, started by Guide, May 22, 2015

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  1. Guide

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    Domain investor valuing systems differ on a case-to-case basis and are largely predicated on their experience and reading. As a result, appraisals widely vary depending on the appraiser. Regardless of the quantity and similarity of appraisals, domains are ultimately only worth what its next buyer is willing to pay. Use this information as possible qualifying benchmarks to assist in appraisals, evaluations and determining an acquisition.

    I. Appraisees
    1. Clearly and specifically answer the following questions for more accurate and efficient appraisals:
    a. Why did you acquire the domain?
    b. Which market did you feel the name would be best suited in?
    c. What have you researched about the domain? This usually includes the domain's previous sales history, comparable domain sales, similar domain listings for sale, and other registered extensions.
    d. Did you already have a value in mind for reselling to an end-user and/or reseller?
    e. Does the domain get any traffic? (Please provide screenshot proof)
    f. Does the domain generate any revenue? (Please provide screenshot proof)
    g. What is the age of the domain?
    h. Is there anything else you can provide that might help an appraiser not familiar with your domains target market?
    2. Please report any appraisals lower than the possible registration price for a domain.
    3. Remember that appraisers are donating their time for free to provide you with an appraisal.
    4. Here is a template for ease-of-use:
    II. Appraisers
    1. The following parameters make for a more accurate and helpful appraisal. Please provide feedback on all of them and grade on a scale of 1-10 (10 being the best ranking) where possible:
    a. Is the domain pronounceable?
    b. Are there too many characters in the domain?
    c. If a short character domain, are they premium letters?
    d. Is the domain currently developed?
    i. If developed, how many pages are indexed?
    ii. If developed, is it original or duplicate content?
    e. Was the domain previously developed?
    f. What are a few development possibilities for this domain?
    g. Does the domain currently generate any revenue?
    h. What is the obvious target market(s)?
    i. Is there any keyword value (cpc)?
    j. Is there any keyword competition?
    k. What are the top competing sites for this domain?
    l. What is the Alexa score?
    m. What is the root domain PageRank (PR)?
    n. Is the domain a dictionary word?
    o. What language is the domain?
    p. Does the language of the domain match the extension?
    q. How many backlinks does the domain have?
    r. What have some similar domains sold for in the past?
    s. Is this domain a Trademark (TM)?
    t. Is this domain a trend that has a limited window of opportunity?
    u. How old is the domain?
    v. Is the domain taken in other top extensions?
    w. Is the domain brandable?
    x. Does the domain have any traffic?
    i. If traffic, what are the traffic sources?
    y. What is the estimated reseller and estimated end-user values you would appraise the domain at?
    2. It's a common tactic to use a sliding proportional scale when trying to figure out what a reseller value should be in comparison to an end-user value (when there's sales history data available). The general range is between 10% to 50% of end-user value keeping basic risk factors in mind.
    a. 10% Example (1/10th of an end-user valuation): A less popular ccTLD such as .af would pose a higher risk to an investor since it may cost several years of renewals before it’s profitable.
    b. 50% Example (half of an end-user valuation): Globally recognized extensions like .com with the same name as .af referenced above is ultimately less risky because it’s return is higher and turnover is quicker.
    3. Try to educate the individual asking for an appraisal. The more detailed information you provide, the more they will learn from the experience and take it less personally.
    4. Remember that the lowest possible appraisal is the registration fee.
    5. The NamePros community appreciates the time and effort you dedicate to give your fellow members free, well-thought out appraisals.
    6. Here is a template for ease-of-use:
    III. Extra
    1. The following are areas on NamePros where you may have your domain appraised:
    a. Domain Appraisal - Free appraisals for domains you own.
    b. Pre-Purchase Appraisals - Appraise a domain for free before you purchase it. Do not seek appraisals for domains listed for sale on NamePros or promote names you already own.
    c. Professional Appraisals - High quality, in-depth appraisals that are exclusive to the Insiders Club and only seen by its other members. Check your Account Level or upgrade to gain access.
    2. If you rank highly in all these parameters and your domain is appraised at an amount over $1,000, try submitting it to the Top Domains area as a premium name for sale.
    a. The Top Domains area is often more selective than the appraisers in the Domain Appraisal area.
     
    The views expressed on this page by users and staff are their own, not those of NamePros.

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