advice My Personal Domain Appraisal Strategy

[Eric Lyon]

IMPORTANT: It doesn’t matter who or how many people you ask about the value of a domain, each appraisal will vary based on a person’s individual experience with a niche and their research. You can crunch all the data in the world and still not hit the same number that a potential end-user is willing to pay. There is no way possible to hit the exact value of a domain on the head due to a wide spectrum of variables that change slightly with each target market.

Why focus on reseller value? Because as domain investors it’s comforting to know that there is still meat on a bone so that we don’t pay too much with little return or end up in the red with a loss.

You wouldn’t ask a Plumber to do a heart transplant and you wouldn’t ask a heart doctor to fix your clogged sink. Chances are, neither of them would be very good in each others industry. The same rule applies to successfully appraising domains. It really comes down to hands-on experience in each industry niche (Separately) to get a closer look at the real potential value of a domain...

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[Eric Lyon]

Nothing fancy to be honest.
I believe the best approach to such a clearly thought out article is to get an 'estimated' base value and work from there.
Everything else (like premium letters, etc.) can add or reduce the base value depending upon -as very well Eric put it- the experience of the user.

With so many different niches and variables, I don't think you can slap a blanketed base-value sticker on domains. In theory, it sounds like it might work, however, It's my opinion that you would need a separate base value for every single niche/sub-niche. As soon as you cross over from one niche to another, the variables can alter the value dramatically.

For instance, you can't create a base value on a "Law Enforcement" domain and then use the same base value on an "Attorney" domain. The markets are completely different. Additionally, even with a domain like "Law Enforcement", the variables will slightly change again as soon as you sub-niche to say; "Law Enforcement Equipment".

 

[Eric Lyon]

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Nice post, but it depends of the type of domain you are interested in.
general domaining, niche master, parking revenue, seo domains, traffic domains, etc,... for each type appraisal is different.

Exactly! I agree! Which is why I made sure to address that in the article a few times.