Sitepoint.com: Domain Appraising
Recently I was surfing the web and came across a great article by Lee who operates DomainGuru.com. The Article is about Domain Name Valuation. It is a great article.
After the birth of the Internet in 1990, several Virtual Assets came into exist. Such as Websites, Blogs, Forums…etc… One Such Virtual Asset is Domain Name.
Yes, Domain Name is a new Asset Class. We can compare it with Real Estate. Domain Name is a virtual Real Estate which has its own Value. A Domain Name is purely an Intellectual Property which born out of the mind work.
A Domain Name is an Asset but unfortunately we don’t have its perfect valuation method. There are so many Domain Appraising services on the internet but none of them is as effective. We don’t have any proper standards of valuation of Domain Names. Right now we decide the value of any domain based on its previous sale value. But previous Sale doesn’t indicate the true value of any Domain name because suppose a Domain Name has changed the hands for US $ 1 Million than it doesn’t mean that it is really worth of a Million Dollar.
A Domain name is composed of just few words or may be a single word sometimes but its an Asset. Say for Example, Loan.com sold for whooping US $ 3 Million. But it may be worth much more or less than this. Some leading Domain Market place websites such as Sedo.com claims that, Domain Valuation is based on the web traffic & the revenue it generates.
While some companies say that, it is based on its popularity. Unfortunately we don’t have any accurate and wide base data for Domain transactions. And with such a low volume current data, it is almost impossible to measure the correct value of Domains.
In case of an Art, if that art by XYZ artist sold for US $ 1 Million than we can say that his next art will be sold for US $ 800K to 2 Millions. But in case of Domains we can’t say that Domain names registered by XYZ person are worth of millions.
There are many limitations in valuating Domain Names. The Domain Flipping Industry is still not mature enough to set any kind of Standards like Real Estate Industry. I think that it will take one more decade to mature this Industry.
Recently, I have registered following 5 Domain Names. I have invested US $ 60 behind following Domain Names.
01) eFlippa.com
02) BusinessFlippa.com 03) WebsiteFlippa.com
04) DomainFlippa.com
05) eBusinessFlipper.com
Recently I was surfing the web and came across a great article by Lee who operates DomainGuru.com. The Article is about Domain Name Valuation. It is a great article.
After the birth of the Internet in 1990, several Virtual Assets came into exist. Such as Websites, Blogs, Forums…etc… One Such Virtual Asset is Domain Name.
Yes, Domain Name is a new Asset Class. We can compare it with Real Estate. Domain Name is a virtual Real Estate which has its own Value. A Domain Name is purely an Intellectual Property which born out of the mind work.
A Domain Name is an Asset but unfortunately we don’t have its perfect valuation method. There are so many Domain Appraising services on the internet but none of them is as effective. We don’t have any proper standards of valuation of Domain Names. Right now we decide the value of any domain based on its previous sale value. But previous Sale doesn’t indicate the true value of any Domain name because suppose a Domain Name has changed the hands for US $ 1 Million than it doesn’t mean that it is really worth of a Million Dollar.
A Domain name is composed of just few words or may be a single word sometimes but its an Asset. Say for Example, Loan.com sold for whooping US $ 3 Million. But it may be worth much more or less than this. Some leading Domain Market place websites such as Sedo.com claims that, Domain Valuation is based on the web traffic & the revenue it generates.
While some companies say that, it is based on its popularity. Unfortunately we don’t have any accurate and wide base data for Domain transactions. And with such a low volume current data, it is almost impossible to measure the correct value of Domains.
In case of an Art, if that art by XYZ artist sold for US $ 1 Million than we can say that his next art will be sold for US $ 800K to 2 Millions. But in case of Domains we can’t say that Domain names registered by XYZ person are worth of millions.
There are many limitations in valuating Domain Names. The Domain Flipping Industry is still not mature enough to set any kind of Standards like Real Estate Industry. I think that it will take one more decade to mature this Industry.
Recently, I have registered following 5 Domain Names. I have invested US $ 60 behind following Domain Names.
01) eFlippa.com
02) BusinessFlippa.com 03) WebsiteFlippa.com
04) DomainFlippa.com
05) eBusinessFlipper.com
