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| Domain Name Appraisals: Are
They Worth the Cost? |
| Posted: 24-04-2006 | Views: 52 |
| Author: Steve Ashton |
Copyright 2006 Stephen Ashton
Have you ever thought about having one of your registered
domain names appraised, because you were considering selling
it and wanted to know what a fair price would be? Maybe
you’re just curious about how much your domain is worth?
Did the high fees for detailed appraisal services turn
you off of the idea, or are you still considering it?
Here’s a simple fact: Domain names, just like any other
product or service, are worth whatever the market will
bear.
What that means is that if a domain appraiser tells you
that your domain name is worth $2500, but the most you
can raise in an auction is $50, then your domain is really
worth $50, not $2500. It’s basic economics. The market
works on a supply-demand system. You’re supplying a certain
domain name, and its value is entirely determined by how
much demand there is for that name. If only one person
in the world is interested in buying it from you, its
value will be pretty low (unless of course you’re a squatter
who jumped on a domain someone let expire, and you’re
demanding an obscene price for it). On the other hand,
if thousands of people desperately want the domain name
that you’re selling, the price some people are willing
to pay can skyrocket, making your domain name worth thousands.
How domains are appraised
Domain appraisal isn’t an exact science. A number of factors
are considered, ranging from the length of the domain
to the domain extension. Here are some of the considerations:
The domain extension – A .com domain is always valued
higher than a .net, .org, or other extension for the same
name.
The length of the domain name – Domains tend to be valued
highest if you avoid going over 12 – 15 characters.
Dashes and Numbers – You’ll receive a higher appraisal
if you avoid using numbers and dashes in your domain name.
Domain Prefixes – You’ll receive a lower appraisal if
your domain name starts with any kind of prefix, whether
it be an e, i, the, an, etc.
Name Recognition – If you’re able to register a domain
that can be easily recognized, such as one common dictionary
word, you’ll receive a higher appraisal.
Name Relevance – If your domain specifically tells what
services or products could be offered by its web site,
then you’ll receive a higher appraisal.
Marketability – Could the domain name be marketed and
promoted easily? Does it lend itself to an easy logo and
site campaign? Can it be pronounced easily in a radio
campaign without being confusing, such as having multiple
possible spellings? Does it look attractive in print?
If the answer to each question is yes, then you’ll receive
a higher appraisal.
Worth the cost?
If nothing else, you need to understand that domain name
appraisals are extremely subjective, and you could receive
very different appraisals from two different appraisal
companies. In a general sense, unless you absolutely must,
a domain name appraisal is likely not worth the expense.
When selling a domain name, many buyers require that you
provide them with one. Some even tell you what appraisal
companies they will and won’t accept. If that’s the case,
agree to get the appraisal, but kindly let the customer
know that if they demand one, they’ll be responsible for
the fee up-front, or you’ll add it to their bill when
processing the sale. Other than that, if you want an honest
opinion on one of your domain names, there are countless
free forums on the Web where experienced professionals
in buying and selling domains will give you their free
input, based on what they’ve seen similar domains sell
for recently. It might be a better use of your time to
get various opinions that way, and decide for yourself
what you feel your domain is worth. And if you considered
getting a domain appraisal simply out of curiosity, remember
this: your company’s domain name is as valuable as you
feel it is. If you couldn’t run your company without it,
it’s priceless.
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Learn more domain name tips and advice at http://www.domainnamescenter.com/
or read web development articles at http://www.webdevshed.com/
This article is free for republishing
Article Source: http://www.articlealley.com/ |
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