Key "dimensions" when evaluating a domain name

[johnar]

Hello,
I am trying to modelize/conceptualize the value of a domain. Think: "what are the key dimensions that matters when deciding to invest in a domain name".

I am thinking of the following 5 dimensions:
- Type in traffic
- Referred traffic
- Search engine traffic
- The SEM potential value of the keywords that compose the domain name
- Subjective "branding appeal" of the name

What do you think?

 

[Jaco]

People have tried (desperately) to quantify domain valuation into a neat, repeatable little formula... While there are some solid metrics that go into domain pricing, a lot of it is extremely abstract and cannot be defined.

The underlying economics of the business that the domain addresses are a big one.
Keyword purity is another big one. Type-ins are a symptom of a great name and a harbinger of keyword purity, but direct navigation is going the way of the dodo. Search engine referals tell you about the site and content, but little about the name.
A superior, aged site with good content will crush a "great name alone", so don't value names too much based on SERP. Keyword relevancy in the name gives an uptick, but a web2 name with great content will crush a keyword pure name on park, a stupid minisite, or otherwise poorly executed.

Beyond that, so much of it boils down to "how badly to people want it and who has the deepest pockets." In this regard, it's precisely like art. Because of this, you see some domains that on the surface, appear to suck, sell for a lot while others go for a song.

 

[cityforums.com]

Hello,
I am trying to modelize/conceptualize the value of a domain. Think: "what are the key dimensions that matters when deciding to invest in a domain name".

I am thinking of the following 5 dimensions:
- Type in traffic
- Referred traffic
- Search engine traffic
- The SEM potential value of the keywords that compose the domain name
- Subjective "branding appeal" of the name

What do you think?

You may want to add ... Does the domain pass the 3 tests.

Does it pass the radio test ? (clear recall with no chance of spelling mistakes)
Does it pass the TV test ? (visually applealing, great recall power)
Does it pass the print test ? (magazine, direct mail, ticket stubs, cereal box, billboard etc recall power)

I have sold a few domains in the $xx,xxx range with almost zero traffic but passed these 3 tests.

 

[johnar]

Good points. What about dividing it in 3 "dimensions":

1- The keyword value, including "keyword purity" and more quantifiable SEM metrics

2- Legacy traffic (type-in, referred, search engine ranking)

3- The appeal tests (radio/tv/print), measuring the appeal of the domain name

Obviously #2 is the most like to change in time, whereas 1 and 3 are mostly constant.

#3 is the most subjective it seems, whereas #1 and to a lesser degree #2 seem quantifyable

If we were to map a domain across these 3 dimensions, would that be a useful representation?

 

[Timewarp]

I would also add:
- is it a money niche?
- is the name a category killer or are there many similar options also available that are just as good?

 

[johnar]

> Re: Money niche
Shouldn't that be reflected in the CPC of the keywords that compose the domains?

> Re: Category Killer
That's a good point. How do you know if a name is a category killer? If we were to look for very similar domains (both semantically Cosmicray's name appeal test), and we find none or few, could we assume this is a category killer?

 

[gazzip]

There's a very interesting article here thats well worth a read

Aftermarket Domains Valuation Factors - Dan Warner for DNJournal.com

..enjoy !


.

 

[johnar]

Well, Dan Warner's matrix looks cute and fancy, but it is hard to actually put much automation behind it, as this is all pretty subjective dimensions AND it is hard to see how these dimensions interplay.

So even if somehow we would quantify "immediacy", "intention" and "specificity", what would that tell us about the brand appeal of a name?

 

[Alan2006]

You can simply ask people to rate domain name for the subjective dimensions

 

[gazzip]

Well, Dan Warner's matrix looks cute and fancy, but it is hard to actually put much automation behind it, as this is all pretty subjective dimensions AND it is hard to see how these dimensions interplay.

So even if somehow we would quantify "immediacy", "intention" and "specificity", what would that tell us about the brand appeal of a name?

Domain value is VERY subjective by nature as they are all unique and each good domain may offer different things to different people/markets, type in traffic, memorability, locality, brandability, SEO ranking benefits etc. If you ask 10 people to appraise the same domain you're still likely to find opinions vary widely.


Why do you want to automate it ? are you trying to make another automated domain appraisal website ?


.

 

[johnar]

Not really an appraisal system (I believe past sales is the best appraisal there is anyway)

But when I go over a list of domains, I'd like to know: is this a traffic domain? Is this a SEM domain? Is this a brand domain?

Even if this or a similar domain was sold for, say, $5k a few months ago, there may still be different reasons for that amount. When I look at historical sales or appraised value, I am looking for a way to represent these dimensions....