A domain name appraisal is an estimate about the potential sales price of a particular Internet domain name. A domain name appraisal is highly speculative. It is an estimate and an opinion, and can considerably vary depending upon the considered elements of the name and its extension.
Some appraisals take into consideration current traffic to the domain's web site, and search engine placement of pages on the web site. This is of interest to those who might wish to build on the traffic, content, and/or reputation of the existing site, or those who wish to use the domain for advertising placement.
Some take current revenue from the domain into account. An existing revenue stream, if it can be retained, can add appreciably to the value or a domain name. Most appraisals focus on the inherent qualities of the name as a trademark. Professional appraisers may regard their methods as proprietary trade secrets.
Appraisers generally weigh the following considerations when evaluating a domain name:
- Top-level domain -- .com, .net, .org, .info, .asia, .mobi and so on. ".com" domains are usually considered more valuable than corresponding domain names in other TLDs, with other more established TLDs -- .net or .org -- following. For example, Sources.com
is considerably more valuable than Sources.ca
- Meaning - Domain names referring to more popular or more general terms are worth more than those referring to more specific or niche subjects, e.g. movies vs. entomology, or sources vs.informatics.
- Suitability for commercialization
- Memorability relative from person to person. A domain should not be more difficult to remember than a phone number or a street address etc.
- Number of words - Domains that comprise fewer words generally have a larger market. One-word domains are the most sought after.
- Length - Shorter names are more convenient for users, being faster to type and less prone to typing errors. Names with seven characters or fewer are particularily desirable.
- Number of searches performed for the domain name or its component words in recent history can indicate its value for search engine optimization.
- Pronounceability - A domain whose proper spelling is clear when spoken is generally more valuable than one which is ambiguous.
- Added numbers usually lower estimation (e.g., Example24.com would be rated as less valuable than Example.com).
- Typographical errors or misspellings - Domain names resembling other domains except for a typographical error can be valued by those seeking to use them for advertising or competitive activities, but can also run afoul of local trademark laws.
- Age ' A long-established domain tends to be more valuable.
- Singular and plural domains may differ in their pricing (e.g. Example.com or Examples.com) - But both singular and plural can be resold several times for different higher or lower prices, depending on the situation of seller and purchaser.
- Recent traffic.
- Selling price of previous similar domains can suggest the current market value of a domain name.
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