I just got DRT..question on appraised value

[darkdrift]

Hi all,

I appreciate this community and how helpful everyone has been thus far.

I just downloaded DRT a few weeks ago and have found this tool to be very quick and fast. I am currently using the default settings for auto apprasial value. It values each Alexa link as $1 . I was wondering how accurate that is to real terms and how an Alexa link can bring a $1 value to the domain name? Also can someone break down how a domain can be profitable with Way Back records, or "total number of google results " without extension.

I am trying to SCALE this up, so I need to see how all the pieces fit together. I have been reading on the forum a lot and am just stuck on those 3 questions above, if anyone could please layout a method for me to scale up my domain buying efforts a bit it would be much appreciated by me and im sure 90% of the audience reading this thread.

Thanks in advance to any PM's and replies to this domaining newb.

Peace out,

Chris

 

[Luc]

I'm going to throw my 2 cents into the pot since I am the creator of the tool and have played around with various appraisal algorithms over the past few years.

The auto-appraiser should never be solely relied on for determining a domains true value or profit potential.

It's useful as an aggregate of the total metrics and is nothing more than an helpful indicator when looking over large lists. It is not a true domain appraisal algorithm, because such a thing does not exist (despite all the appraisal sites out there). Domain values are very subjective and they're determined by many factors which cannot be programmed (such as industry type, season, economy and many others).

There is a danger in using it to determine if a domain is "profitable" or "marketable" or "brandable". I say this because many new users fall into a trap thinking that just because an appraised value is $xx or $xxx, the domain is automatically valuable. This is not always true and common sense must be exercised.

Now, to answer your question. It really comes down to what your intention is for the domain. Say for example, your intention is to flip it (register and then try to sell right away), the formula would have to be adjusted to assign a greater weight to domains with strong keywords (ex: MSN/Google actual term popularity in this case).

If your intention is to park a domain, the formula would have to be adjusted to detect certain properties which are statistically known be associated with traffic domains, such as age (Alexa wayback age), Link Popularity, Link Saturation, Alexa Traffic Rank and others.

The above two are just extremely simple samples. Some knowledge of the industry and monetization is required to better understand different metrics can best be applied to an automated algorithm.

There is no magic algorithm, or best algorithm for determining value because value means different things to different people and you must start by figuring out what you intend to do with the domain (park, resell, develop)

I hope this helps in pointing you in the right direction. I'm always available for help if you need more.

Shoot me an e-mail, [email protected] if you have any questions.

Thanks!
Luc L.