Domain valuation conversations are likely the most spirited and opinionated conversations one can witness or engage in with industry professionals.
Even closing in on 30 years since the early 90’s digital gold rush for sacred .com domains, there are a wide range of formulas and methods tossed around to gauge a domain’s valuation.
From the Rosener Equation to search traffic estimation to type-in traffic to cost-per-lead to cost-per-click to revenue multiples, there are countless ways for one to calculate a domain’s worth.
And in between the formulas and methods previously mentioned, there are also folks using and gauging domain value using industry tools such as:
- GoDaddy (and Estimated Value)
- Other 3rd-Party Domain Valuations (Human & Automated)
The most interesting thing I’ve found is that all of the above are wide ranging in valuation and can’t be truly considered an apples-to-apples comparison when being completely objective.Methods and Tools Domain Brokers Use to Appraise Domain Valuations Click To Tweet
During MERGE!’s Appraisal and Valuation fo Intangible Assets (Domains, IP, Brands) breakout session, Bill Sweetman moderated a very insightful panel consisting of the following domain broker professionals:
It was interesting to hear each broker discuss their process, method and tools used to identify a near-realistic value when calculating a domain’s worth.
From a startup in search of a domain or domain upgrade, or a big conglomerate voluntarily or involuntarily divesting it’s tangible and intangible assets, it’s certainly both an art and science to appraising and pricing domains the market can bear.
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