Domain Valuation
How Much is Your Domain Worth?
A domain name is only worth as much as a buyer is prepared to pay for the domain name.
The amount a buyer is prepared to pay for a domain is based on the perceived value, credibility, reduction in marketing costs and increases in revenue that the domain name will bring to their ebusiness.
The domain owner will only sell the domain name if he/she believes that they are getting at least a fair price for the domain name and that there is no potential for a better offer in the near future. Nonetheless, if the seller is in need of liquidity, then he/she may be motivated to accept an offer of less than the perceived market value of the domain name.
With that being said, the value of a domain name can be defined as the agreed price at which the buyer is willing to buy and the price at which the seller is willing to sell.
The strategy is really finding that common price at which the domain seller is willing to accept an offer and the price that the buyer is willing to pay.
Do not waste money on domain appraisal services. Domain appraisals are simply, useless.
Do not waste time entertaining a buyer or seller who requests to have a domain appraisal for a domain name. There is a huge possibility than you will only end up getting scammed out of the fees paid for such a service.
Domain names are normally not listed with asking prices. This is simply because a domain name has a different value to different parties. So it is up to the interested party to make their best offer.
A domain name will have more value to a multi-million dollar enterprise seeking to launch product website, than to a high school kid wishing to start a blog.
As such, the multi-million dollar enterprise will be prepared to spend a lot more for the domain, based on their perceived benefit of the domain name. The benefit will mostly be linked to the perceived credibility and the commercial, marketing and branding advantage that the domain name will bring to their business.
As such, in that case, the domain seller will most likely wish to sell to the multi-million dollar enterprise as the enterprise would value the domain name at a higher price than the high school kid.
Simply speaking, a domain name will have a different inherent value to different parties. As such, its for the buyer to place an offer based on their perceived value, with the hope that the buyer will be willing to sell at that price in that moment in time.
