How We Appraise Domain Names
1. Domain Type
The domain name market gives far greater valuations to .COM domains than .NET domains, .ORG domains and any one of several other major extensions available in the domain name market.
2. Domain Name Recognition
Plain English words, spelled correctly, including slang, make more sense to people and are easier to impress upon an audience. They are absolutely the most valuable domain names. Names like autos4u.com have a second-class aura about them and are more difficult for people to read, recognize, and remember.
3. Domain Marketability
The number of people who are potential customers for the website that the name promotes is a significant component of domain name value. For instance, the domain name pizza.com rates higher, because essentially everyone loves pizza.
4. Domain Development Potential
A domain name that's relevant to what's being sold is more valuable, because it's self-explanatory. For instance, we suspect that if we see a website with the domain name dietbooks.com, we will expect it to have something to do with books on various weight-loss schemes.
5. Domain Name Length
Short and sweet is generally the most desirable quality for a domain name, especially with most of the recognizable names rarely available. Single, recognizable words are considered better than multiple words pieced together.
6. Likely Domain Buyers
Possibly buyers? This makes a great difference in the value. For instance, a name suitable for a physician but not for a medical organization will most likely be sold to a small business (i.e., a doctors' practice). Doctors can't afford to spend hundreds of thousands on a domain name. On the other hand, a domain like furniture.com might sell to an organization willing to invest substantial resources. There are plenty of large organizations that can justify paying hundreds of thousands, maybe even millions for a domain name.
7. Traffic and Revenue
Websites that are receiving traffic have better value than those without traffic. Websites with substantial revenue (over $500 monthly) are valued much higher. (Please specify such revenue when submitting for an appraisal) A great way to get an overview of a domain in terms of ranking amongst the millions of sites on the Internet is by going to Alexa.com.
8. Current Market Trends
Domain names that are associated with current market trends, events and popular niches are often valued higher.