NamePros appraisals: Understanding the market

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Keynes

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This is one of my favorite forums, and continues to be a valuable resource. One point of contention I do have, however, is that most appraisals on the forum are lacking in market perspective and knowledge. In general, I believe that appraisals should be given by individuals who know a certain market segment fairly well and can give an accurate valuation for a name, undeveloped and developed, short run and long run. Too many times do you have to scroll through a long list of posts to find a few thoughtful appraisals.

Sure, there are many variables that go into the valuation of a domain, but one core guiding principle should be prevailing market conditions and potential. I hope that, going forward, appraisals will become more thoughtful and provide better information to potential sellers/developers. Thanks again for everyone who contributes to these boards, and let's hope it continues to get even better. RF %%-
 
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The views expressed on this page by users and staff are their own, not those of NamePros.
AfternicAfternic
I agree. I only attempt to appraise names that I am somewhat familar with it's topic. You won't see me do any appraisals on "gaming" names, for instance, because of my lack of knowledge on that subject. I tend to go by what similar names have sold for on various forums and other related sites. I usually only attempt wholesale/undeveloped appraised values as well because end-user values could be all over the place.

I also only appraise names with extensions I am familar with.

It's still a crap shoot, regardless.

ST
 
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rocketfly, I couldnt have said it better.
Additionally I would say, that most appraisals are unfortunately mainly based on the
"what would I pay" factor, which is the last factor to concidder in a appraisal.
Allthough domains appraisals are a real tough task, I also would like to see some more thoughts in most appraisals, or better appraise only if you have the knowledge (like costalguy says)

I had a quite extensive discussion on this about half a year ago at NP, but darn, I cant find the thread anymore.
 
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nRnF said:
rocketfly, I couldnt have said it better.
Additionally I would say, that most appraisals are unfortunately mainly based on the
"what would I pay" factor, which is the last factor to concidder in a appraisal.
Allthough domains appraisals are a real tough task, I also would like to see some more thoughts in most appraisals, or better appraise only if you have the knowledge (like costalguy says)

I had a quite extensive discussion on this about half a year ago at NP, but darn, I cant find the thread anymore.

I believe this is the thread you are talking about:

http://namepros.com/showthread.php?t=67899
 
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Although this forum is probably more friendly and realistic than most in appraisals, you need to take all "appraisals" with a grain of salt whether from a forum or a more formal appraisal company. In real estate, cars, or antiques, an appraiser normally has training, experience, and real data of past similar sales to use as a guideline, mixed with some opinion based on appearance and personal knowledge. Forum appraisals are mostly going to be opinion, although sometimes educated opinion. You won't find many real appraisals that list similar domain sales related to the subject, or a guide to help such as an auto blue book or public real estate sales records. IMHO, they really aren't "appraisals", but "opinions of potential value" if I may split hairs. Basically with a free appraisal, you get what you pay for, a quick opinion with no factual data to back it up.

I really don't know of any domain appraiser that will currently give you a comprehensive report of similar sales, availability of similar names and their development status, a report of the market conditions or competitors on the subject matter of the domain, etc. Some may actually search other available domains, overture numbers, and other hard data, but most will not for free. Just accept them for what they are...opinions.

If you think they are too high or too low, just consider the source and if you don't like what you hear, dig up some hard evidence yourself to support the value of your name. The more data you have the better you can justify a price to a buyer. Google page listings, pagerank, traffic, other TLD registration and development status, overture, and many other factors can help you support an asking price better than an appraisal by someone who probably has no credentials to prove their opinions really mean anything. Don't get me wrong, there are some very knowledgeable "appraisers" here, but the accuracy of appraising domain names is way more of an art than a science at this point. I've been doing this for about as long as anyone, and the prices of actual sales on dnjournal surprise me every week with some I think went cheap and others I can't believe sold at all.

I do agree and follow the rule that you shouldn't appraise a name unless you have experience with the subject matter, the market, the TLD, a similar name sale, or some other significant factor. Doing so only further degrades reliability and believability of what is appraised. However, it's pretty easy for most here even with little experience to spot the real zero value domain and make a comment. There will also be some who appraise for their own gain as well, since they may have interest in acquirig the appraised name cheap, have the same name in another TLD, or a similar name.

Personally, I think a more postive way to appraise would be to point out both the positive and negative points to a domain that either give it value or mean it may have none. Just throwing out a number doesn't help particularly the newbie understand what makes a name highly valueable or a loser. I guess my keyword for a true appraisal would be "justification".
 
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It's true that most domain names are worth what the buyer is willing to pay - sorta like "beauty lies in the eyes of the beholder" thingy. Unless you have LLL.COMs or single dictionary word domains which at least have a minimum price.
 
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Appraising domain names is probably one of the most ambiguous things one could do. When I ask for an appraisal it’s because I want to read ideas some may have for the name not for actually appraising the value. Even a well thought out and researched appraisal would never have properly evaluated the name PartnerCash.com but that one sold for $110,000. In this game the only proper appraisal comes from the prospective buyer.
 
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There's lots of good feedback in the thread, I hope this discussion keeps going. I agree that the valuation of a name is part science, part art -- it's not an exact science, nor should it be. The domain market is, however, a market with all the trappings that go with a market.

So while scarcity and demand elasticities will often not predict the actual value of a domain, they do matter (from both a qualitative and statistically significant sense) and must be factored into the equation. I see a lot of appraisals for generic names that are clearly off base -- 3 character names appraised at mid $xxx, strong names with revenue valued at less than 6x PPC income -- these are outlier cases, but they do occur at NamePros and, in my opinion, they need to improve.

I respect the fact that the price on any given domain is determined by a buyer/seller interaction -- that's the beauty of markets, but there are certain parameters within which a name should be valued, especially on the wholesale end. I believe it would be helpful to provide wholesale and end-user price ranges, as well as potential growth in the name value, as best as possible. So we can take into consideration many different factors, but must keep in mind this is a market, like many others. B-)
 
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Yes ,without market knowledge and experience, especially that
Development and Branding can greatly add value to a Domain
Otherwise ,the appriasals of a some Very Valuable Names
would be along the lines of

Google.com
Nice Typo of Googol
Value Maybe RegFee-ImHO -->$xx Mid Developed
Maybe Googol.net would be better Choice

MySpace.com
THe "My"spoils the Keyword "Space"
Reg-fee only

Yahoo.com
Yahoo is not a good KeyWord
Reg-Fee only

eBay.com
Ecommerce Bay ,Doesn't make sense
Reg-Fee only
 
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Yes ,without market knowledge and experience, especially that
Development and Branding can greatly add value to a Domain
Otherwise ,the appriasals of a some Very Valuable Names
would be along the lines of

Google.com
Nice Typo of Googol
Value Maybe RegFee-ImHO -->$xx Mid Developed
Maybe Googol.net would be better Choice

MySpace.com
THe "My"spoils the Keyword "Space"
Reg-fee only

Yahoo.com
Yahoo is not a good KeyWord
Reg-Fee only

eBay.com
Ecommerce Bay ,Doesn't make sense
Reg-Fee only
Before those popular sites were developed, those appraisals would have been right on the money. The main thing that all four have going for them is brandability, which doesn't necessarily in itself make a domain worth money, but does give it the potential to be worth a lot of money after it is developed.
 
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sometimes I feel that people here appraise low so that selling prices would remain low. I think its a key indicating wholesale or retail appraisal. Especially for retail market knowledge should be known.

Also this is a very international board. People on small faraway islands dont always understand the us market for instance. I would not appraise a .in name since I dont anyhting about india than they answer a lot phones. :)

Ok ok. I know they are extremely smart, take their education seriously. everyone is kamasutra lovemaking experts and gurus. everybody has at least one uncle named Gupta and a cousin named Rajiv. Correct?
 
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Appraisals are opinions, and on here an easy way to earn NP$ and whether you like it or not a lot of people are here to acquire 495 NP$ get a free domain. SO in the course of a month 250 posts 8 1/2 a day get someone their brand new .com.

you say they must change? IT Is free no one here owes you anything I am often lost If you have a good name why you need strangers to appraise. APPRAISALS in domains are unlike any other area. Let someone appraise a name for $2500 then offer it to them for $250 9 out of 10 will not buy it. WHy I mean 10 cents on the dollar. MICROSOFT is $27 a share I would take all I could get at $2.70 you know $27 is what the Stock market has appraised Microsofts value, at. I agree with KIM best reason to ask is to get ideas for what to do with the name. No Offense what do I care that you appraise MarketGains.com for $2000 If you are not going to pay me $2000 for it just an exercise in mental masturbation. IMO

As far as appraising Google or My space or Yahoo, THOSE ARE BUSINESSES, THE BUSINESS holds the Value could have been Giniti IF THATSwhat the Google founders named it.
 
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refreshing to see good dialog for once. Sometimes the threads on NP reflects the median age that has often been revealed on those polls that everyone seem to like so much.

Good topic and Rocketfly makes a GREAT case.
 
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Yes ,without market knowledge and experience, especially that
Development and Branding can greatly add value to a Domain
Otherwise ,the appriasals of a some Very Valuable Names
would be along the lines of

Google.com
Nice Typo of Googol
Value Maybe RegFee-ImHO -->$xx Mid Developed
Maybe Googol.net would be better Choice

MySpace.com
THe "My"spoils the Keyword "Space"
Reg-fee only

Yahoo.com
Yahoo is not a good KeyWord
Reg-Fee only

eBay.com
Ecommerce Bay ,Doesn't make sense
Reg-Fee only


WealthStream said:
Before those popular sites were developed, those appraisals would have been right on the money.

I have to disagree; I think a more accurate representation would be:

“eBay” An electronic commerce inlet, a place where consumers and goods flow; I think you have the right marketing idea. It’s perfect for branding and memorable. High $x,xxx to low $xx,xxx to an end user.

“Yahoo” It’s easy to remember and cute “You bunch of yahoos”. I like it, low $xxx

“MySpace” the My definitely devalues it but it’s still only 7 letters and very memorable. $100 reseller, low to mid $xxx to an end user

“Google” I understand this is a variation on the obscure term Googol (The number 10 raised to the power 100) but that’s a stretch of an already obscure name that is meaningless to most people. You’d be lucky to get your reg fee back. “What the heck’s a Google?”




There’s no doubt that marketing, a solid business model and technological ingenuity is the reason for the success of these sites but to say these names alone had no value at all is, in my humble opinion, is way off.
 
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“eBay” An electronic commerce inlet, a place where consumers and goods flow; I think you have the right marketing idea. It’s perfect for branding and memorable. High $x,xxx to low $xx,xxx to an end user.

“Yahoo” It’s easy to remember and cute “You bunch of yahoos”. I like it, low $xxx

“MySpace” the My definitely devalues it but it’s still only 7 letters and very memorable. $100 reseller, low to mid $xxx to an end user

“Google” I understand this is a variation on the obscure term Googol (The number 10 raised to the power 100) but that’s a stretch of an already obscure name that is meaningless to most people. You’d be lucky to get your reg fee back. “What the heck’s a Google?”


I agree with Google and My space, disagree totally with EBAY and Yahoo by that reasoning every cute name worth low xxx and IMO that is not what ebay conveys but just my Opinion I hope obscure LLLL.coms are worth that I have a few.
 
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slaughterbeck said:
“Google” I understand this is a variation on the obscure term Googol (The number 10 raised to the power 100) but that’s a stretch of an already obscure name that is meaningless to most people. You’d be lucky to get your reg fee back. “What the heck’s a Google?”


funny and smart
 
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We've talked about this before and my opinion on the matter remains the same. When you press that "Post Topic" button you know good and well that the appraisals you get will be given by all sorts of individuals - some with experience and a lot without. The opinions on price you get are nothing more than thoughts and comments on various names. They're simply intended to give you an idea of where you stand and I don't think anyone here intends to give a certified appraisal each time he or she posts (althought there are some great members here who do take time to offer brilliant appraisals from time to time).

It's a great free service provided by Namepros that can really help you at least get a rough ballpark figure of where you stand but it's nothing more than that. Given the current volume of requests, any sort of certification would only serve to slow down the process and decrease a thriving part of the forum. At least now you're told when something is good and when it just needs to be deleted.
 
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equity78 said:
I agree with Google and My space, disagree totally with EBAY and Yahoo by that reasoning every cute name worth low xxx and IMO that is not what ebay conveys but just my Opinion I hope obscure LLLL.coms are worth that I have a few.
Yahoo is cute and was a word long before its internet presence. It’s a five letter, memorable word which sets the value to an end user.

eBay is short and perhaps I’m over valuing it at High $x,xxx to low $xx,xxx to an end user. But the people who owned these short brand worthy domains 10 years ago were people like Rick Schwartz and I think you can agree his “If they want it and they NEED it, they will step up to the plate and buy it” mentality would have forced the price a bit.
 
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What I am saying is the value is in their business not their name by the same thinking wahoo is cute same for woohoo or lalalala (means I love you is how the song goes) SO that must be a cute name there are countless examples and those names are selling for nothing at the present time. AND at the same time Porker.com sold for $155,000 nothing cute about that. EBAY is not a bad name buy not xx,xxx IMO
 
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