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domain The Unofficial NP Domain Appraisal Guide

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skyraider

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Hey everyone,
Here's my first attempt at a helpful article for us NP'ers: Domain Apprasial. If this isn't in the right section, please move it ;)

Article: How to better help a domain owner determine a domain's value


Many appraisers on NamePros simply post "Low to mid $xx" or "Low $xx IMO" or "High $xxx" without stating a reason for his/her valuation. In this thread, I hope to better the NamePros appraisal forum by providing suggestions for how appraisers can better assist the owner of a domain determine the value of his/her name in several different situations. To start off, let's look at the different types of major extensions in the most common order of what they're worth.

.com is the commercial extension. Typically, .com domains are worth the most.
.net used to be a "network" extension; however, it fits forums well and is used when the .com version of a domain isn't available.
.org is the most 'restricited' of the top 3 TLD's. By 'restricted', I mean that many .org names aren't worth much at all unless they are obviously useable for a nonprofit organization. Recently, however, with many other TLD's being taken, the value of a good .org has increased.
.biz is the business extension. Although not widely used, some businesses do have .biz domains. A commercial keyword ending with .biz can be quite valuble.
.us means .United States. Domains that would be usable to a United States reseller aiming its products at the U.S. market can be worth a good amount in .us.
.info domains are an intereted batch. .info domains can be registered for under $3; additionally, a premium .info domain is typically worth less than a premium .com or .net. There are exceptions; some buyers do indeed value .info's over other domains because of factors such as universality.

When appraising a domain, be sure to keep the following factors in mind: keyword frequency, length of the name, extension and relevancy of the extension.
Keyword frequency in search can be determined using the Google AdWords Keyword Tool. The more searches conducted on a particular keyword or set of keywords, the more valuble that keyword or set of keywords is as a domain name.
Length of the domain name is another important factor; users have an easier time remembering shorter names. In addition, longer domains may recieve less traffic than competitors because users simply don't want to type in computerdiscussions.com when they could go to pctalk.com, which is (let's pretend, at least) of similar or equal quality.
Relevancy of the extension is the most important factor in appraising a domain name. For example, EuropeanUnion.us does not fit its extension in that the EU is not a United States body. Another example: buycars.org may try to be a commercial site. However, since .org is typically used for non-profit groups, the site may not have much success.

Remember to keep all of the factors in mind when appraising a domain. Also, say more than "Mid $xx". Tell the owner what he/she needs to know to develop a sense of the domain's value.

~ Also include what you would pay ~

Recently, many appraisals here at NP have been based around what the appraiser thinks the value of the domain name is to a another reseller and to an end user. That's good, but it may not be all that helpful to the owner of the domain being appraised. Why?

The real value of a domain is what it sells for.
If you think that someone else may pay $250 (low $xxx) for a domain, but you're a frequent domain buyer and you're only willing to pay $25, then you should state that in the post. Tell the owner what you would pay, even if it's only $5. Here's why: if 5-15 appraisers are only willing to pay $5, the domain is likely worth $5 in the reseller market.

Example: if your domain recieves 10 appraisals, and 8 people say that it's only worth $10 because they aren't looking to develop a website around such a topic, then it gives the owner a good idea of what the domain is actually worth to domain resellers.

However, if the two remaining appraisers would pay $xxx because they plan to develop a website around that topic or may be interested in or capable of doing so, then the owner has an idea of approximately what percentage of the domain/website development market his or her domain name is marketable to.

Summary: in addition to reseller & development value estimations, tell the owner of a domain what you personally would pay for the domain, no matter how low, because a domain is only worth what it sells for.

~ Example: ~

Sports.us is the domain being appraised. You'd go to Overture and find that many people searched for "sports". You realize that sports are played in the United States, so the extension is relevant. The domain is short and sweet, adding to its value. Also, there are tons of results on Google for "sports". So you'd say:

"Since 'sports' had X searches this January on Overture and since it's very short and memorable, I'd say you could sell it for [price] to an end user and [price] to a domain investor. The extension doesn't hurt if you can find a user with a sports site targeting the United States market."

~ Example #2: ~

MarketForums.net is the domain being appraised (using this one b/c I own it). I'm the appraiser. I go to Overture and find high results for 'market' and 'forums', but not 'market forums'. On Google, however, there are surprisingly many results for "market forums", probably meaning that there's a large interest in the subject. So, search results are OK for this domain. The extension would be better in .com; however, .net does not bring the value down too much considering that many .net is often used for forums.

For an international market forum, this domain is good. To a developer wanting to start up a United States stock market forum, however, MarketForums.us may be better. To a domain investor, MarketForums.net would be the pick over MarketForums.us.

~ Example #3: Country Code Extensions ~

Beaches.sc (also mine) is the domain up for appraisal. On first sight, you might say "Registration fee; the extension hurts it." However, upon using your friend Google to research the .sc extension, you find that the ext. was created for the Seychelles, a beautiful French archipelago and a great tourist/vacation destination. In your appraisal, you should include that because the U.S. market for tourism to French lands is down at the moment because we're munching on freedom fries, beaches.sc could be used as .South Carolina.

Overture tells you that there are hundreds of thousands of results for beaches in South Carolina like Myrtle Beach. Enlighten the domain owner to the fact that with a good amount of development as a South Carolina beach information site, beaches.sc is an excellent keyword domain and would be worth [price]. However, to a domain investor, .sc may mean "source" (like whois.sc); "beaches source" makes no sense and wouldn't be worth much at all.

~ Example #4: 3-Letter Domains ~
When your appraise three-letter domains, take two main things into consideration: if the letters mean anything or are an acronym and the quality of the extension. FYI.co.in is likely worth more that QYX.com because FYI means "For Your Information", whereas QYX does not have a widely known meaning. 3-letter domains (LLL - Letter Letter Letter) are typically more valuble than LNL (Letter Number Letter) or NNL or NLN names because they're easier to pronounce.

~ Helping the domain owner: ~

Tell the person who posted the domain all of this info, including what market(s) the domain would be most valuble in and why. It helps him/her get a better feel for the value of the domain in different situations with different buyers. You should also get a feel for the value of certain extensions and for whether the market is "bull" or "bear". To keep up with the market, frequent sites such at DNJournal.com and the NamePros sales forums to see how much names are going for.

If you enjoyed my article and think other NP'ers could benefit from it, please send some $NP this way so I can sticky the thread.

Happy appraising! B-)
 
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The views expressed on this page by users and staff are their own, not those of NamePros.
Badger said:
Errrrr, did anyone mention removing NP$ for posting...????

There are at least 10 members I could name (but wont) who post 10/20 appraisals within 5 minutes. Now thats research for ya....

Now, you might say they are just trying to learn and they have as valid opinion as anyone else... And I say b****** to that.... The only reason the serial (waste of time) appraisers even bother to turn up is to work their way to 700 np$ (or whatever it is) to earn themselves their (in most cases) 1st domain...

And what this does is turn the appraisal forum into a mockery...

You have the time, i'll show you at least a dozen appraisals given in the last few weeks where utter rubbish is being posted. And posted by people without a shred of knowledge or interest for that matter of what they are talking about... I may bleat on like an old woman about it whilst my fellow domainers sit back and keep quiet with the view that "why do i bother myself trying to change things, you know what your domains are worth"... And I say, I learnt a lot here and have made a lot of money doing so.. And thus i want to give back something and not let scammers (for thats all they are) ruin it for the next bunch of NP members

The end....

Amen brother *insert priest smiley here*
 
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Badger said:
I think you may be p*ssing in the wind my friend. Utopia will never be achieved here all the time there is a tangible gain to be had in through appraising domains...

I personally thing the domain appraisal forum gets lower and lower in relevance as the days go by and am deeply surprised Ron and the boys appear somewhat 'laissez faire' when it comes round to addressing the issue/problem....

I'm sorry it seems that way. I have in fact come up with a unique plan for improving the quality of posts in the appraisal forum. It is just taking me a while to set it up properly.

Carry on....
 
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-RJ- said:
I'm sorry it seems that way. I have in fact come up with a unique plan for improving the quality of posts in the appraisal forum. It is just taking me a while to set it up properly.

Carry on....

Excellent. Thanks for taking action, -RJ-. I can't wait to see this new system up and running. :)
 
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-RJ- said:
I'm sorry it seems that way. I have in fact come up with a unique plan for improving the quality of posts in the appraisal forum. It is just taking me a while to set it up properly.

Carry on....

It does seem that way.
Looking forward to ANY action that improves the quality of posts in the appraisal forum.

KinglyDomains
 
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Great article! I agree with this all, even since I've also posted "Low $xx" "Mid $xx" "High $xx" etc, and I agree that more should be explained. :)
 
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I think the new Q&A feature is a great step forward. Will be heading off to my profile to fill it out - I hope it can be updated, and isn't just a 1 time Q&A session. The (a)nswers do evolve over time :)

Excellent initiative - shows that the NP staff is truly responsive to the community!

Rob
 
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RTM said:
I think the new Q&A feature is a great step forward. Will be heading off to my profile to fill it out - I hope it can be updated, and isn't just a 1 time Q&A session. The (a)nswers do evolve over time :)

Excellent initiative - shows that the NP staff is truly responsive to the community!

Rob

Absolutely, you can update your Q&A's anytime. Even mine is just a rough draft at this point. I don't want to take this thread too far off the original topic, but I'm glad you guys like the new changes.

RJ
 
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some of the most profound things may be said with just a suggestion, or one word or just a smile who is to say what is meaningful and deserves points, in a post??
i dont want to be a number of any ones calculation ,

"And she shows you where to look amoungst the gar ba ge and the flowers
their are heros in the seaweed they are leaning out for love they will lean that way forever as susan holds the mirror."
Leonard Cohen " susan song"
 
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harpo said:
"And she shows you where to look amoungst the gar ba ge and the flowers
their are heros in the seaweed they are leaning out for love they will lean that way forever as susan holds the mirror."
Leonard Cohen " susan song"

Seeing as its Friday, can i have some of what youve been drinking Harpo...??

:)
 
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Added example #4: appraising three-letter domains. It's rather brief, but should give readers a good idea on a 3-letter (not character) domain's value. Feedback on this example is appreciated :)

Thanks.
 
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skyraider said:
Added example #4: appraising three-letter domains. It's rather brief, but should give readers a good idea on a 3-letter (not character) domain's value. Feedback on this example is appreciated :)

Right on target with example #4.

Check the paragraph right after your new addition. I believe it belongs with the .SC-related paragraph in example #3.
 
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Great idea Ron :tu:

Was just waiting for you to input this thread ;)
 
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The mods must feel like they are banging their heads sometimes.

This is the latest type of "appraisal"-

" Reg fee

View Appraisal Methods and Profile for "name of appraiser" "

Some members are using the new system to continue to say nothing. And do they get NP's for this?

Still a good forum, keep up the good work.
 
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wot said:
The mods must feel like they are banging their heads sometimes.

This is the latest type of "appraisal"-

" Reg fee

View Appraisal Methods and Profile for "name of appraiser" "

Some members are using the new system to continue to say nothing. And do they get NP's for this?

Still a good forum, keep up the good work.

Yep; unforunately, the appraisal methods chart didn't help all that much. Reasons need to be posted.

@ RJ: What would you think about modifying the appraisals forum to include additional fields in replies such as "What would you pay for it?" and "What kind of website would bring in lots of $$ with this name?". These could be like the "Title" field, and would be displayed automatically inside the reply.

There's also a lot of "Low $xx, more if devved. Low $xx, more if devved. Low $xx..." etc.

I have an idea. See my thread here.

EDIT: Updated my post with the "appraise for what you're willing to pay" method.
 
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Apparently it has not eliminated up all instances of junk appraisals, but in my observations the new Q&A requirement has improved overall quality quite a bit. If I come across appraisals like the one wot mentioned and that user's other appraisals are along the same line (short or spamlike w/o explanation) then it only takes me a couple of clicks to unapprove them to earn NP$ for appraisals. I can't be everywhere though, so drop me a name if you see something you would consider appraisal spamming.

I posted a "Newbies Guide to Appraisals" at http://www.namepros.com/showthread.php?t=82655 that describes some good methods of offering constructive opinions even for those without extensive backgrounds in valuating names. I'm trying to give everyone a shot to earn NP$ for appraisal posts, regardless of experience.

Thanks for the input,

RJ
 
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I did the Q&As maybe a week ago, but I don't think they were accepted. Does that mean they were declined?
 
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I have now, offenders take note, or not as they tend to do :hehe:


Originally Posted by JeffFair enough ... please continue to add those thoughts and comments to the referenced post's "Domain Discussion" thread:
http://www.namepros.com/showthread.php?t=79784&page=3

... rather than commentary on same within every one of your "Appraisals Forum" threads, IMHO. The process can be discussed - and ways to improve upon it - in this fashion, rather than singling out / taking exception with individual appraisers here in the threads. I hope you can understand where I'm coming from in this regard.

Appreciates.
-Jeff



No probs- but at least this way notice gets taken, because obviously the individuals are not referriing to the correct thread
 
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OK now I give up, this followed the last post!

low xx$ IMHO



View Appraisal Methods and Profile for Petter
 
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help.大家帮我评估下这个域名 - on the appraisals thread

The absolute classic for spam appraisals, value or not I am pretty well sure that most of the "appraisers" have absolutely no idea what they are talking about and still they insist on "reg fee" etc and get their NP's.

Nobody else seems to care so carry on regardless. :cy:
 
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wot said:
help.大家帮我评估下这个域名 - on the appraisals thread...

Heh...that's some funny stuff. I guess there's still some work to be done before the junk appraisals get eliminated. Maybe the only solution is to remove the ability to earn NP$ in the appraisal forum. Oh well.

AmCy
 
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Wot, more people care than you think, but in my opinion....

On a forum this size, with this percentage of youngsters (both in age, and time in the business), realistically there is only so much that can be done. No matter how hard you try, you can't teach 'experience'. They have to live it & learn it. Many of these guys are very young, and each learns at their own pace. From what I've seen, most of them are trying to do the right thing. Like anything, a few bad apples can spoil the bunch.

Plus, for me personally, it helps to keep my sanity on the subject by reminding myself that the best appraisal in the world, from the most experienced domainer on the planet - can't buy me a cup of coffee. That helps keep things in perspective on the whole 'appraisal' issue to begin with.

Appraisals are opinions. You can't force opinions on people. You can only try to change them thru education.

I just don't think it's a beast that can be fully tamed. It's the nature of appraisals to be 'wild'.

:)
 
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www.AmCy.org said:
Heh...that's some funny stuff. I guess there's still some work to be done before the junk appraisals get eliminated. Maybe the only solution is to remove the ability to earn NP$ in the appraisal forum. Oh well.

AmCy

That may work.

One example of careless appraising (IMO): "OhioValley.com - hmm - low $xx" < actually happened.
 
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Thanks for the excellent post, great job! (Now I know what I'm doing :D )
 
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