Everybody has heard a story of a domain name selling for tens (or hundreds) of thousands of dollars. Surely, yours (which is not as good) must be able to fetch a fraction of that, right?
There are well over 150 million domain names registered, and the turnover in aftermarket sales is a fraction of one percent of the total domains registered. That is still a lot of data to help develop appraisal valuations; however, intangible factors play a huge role. Some of these factors include personal desires, the relative value of money, a seller’s need, a buyer’s budget and more.
Furthermore, many high-value domains are acquired from desire and not because of their value. We could name hundreds of privately acquired domains which have little standalone resale value (but have tremendous value to the one particular brand who purchased the domain name).
Domain names that do sell typically fall into one of three categories:
- Investment Grade
- Premium Short Domains
- Specific Needs
Valuating a domain name is part science and part art. The X factor to form a reasonable foundation of value is experience, and we have over 20 years and $50 million of it.