Websites offering domain name appraisals are increasingly
common, but are all services equal? And is the result actually
worth the expenditure?
=== Why Get a Domain Name Appraised? ===
You'll fall into one of two categories - either buyer or seller.
For someone wishing to buy an existing domain name, an appraisal
should indicate whther the asking prices is realistic or not
(bearing in mind that you may also paying for reputation
etc...). For the seller of a domain name, an appraisal can
increase the potential sale value and/or your bargaining
position in the sale.
=== Are all Domain Appraisal Services Equal? ===
Domain appraisal services can cost anywhere between a few
dollars and a few hundred dollars, and it is generally true that
you get what you pay for. Many of the lower-priced appraisers
use the same software, which given the rate of change of the
Internet world, is very quickly outdated. This software also
only appraises a few top level domains (TLD) e.g. .com excluding
holders of most other TLD e.g. .uk. The software is also very
subjective, meaning that two different users can declare very
different values for the same domain. Higher priced services
tend to appraise each domain individually, and take more factors
into account, such as current market conditions, comparable
sales and relative searches in addition to factors such as name
length, commercial potential and whether the name is easy to
remember and spell.
=== Choosing a Domain Name Appraiser ===
When having a domain name appraised, ensure that your TLD is on
the list! If the appraiser doesn't accept country level domains
(such as .uk) and charge a low fee, chances are they are using
the subjective software described above, and the appraisal will
not be worth the expenditure. On the other hand, if you are
selling a well-known, highly-trafficked domain, a higher cost
and more in-depth appraisal will be money well spent.
Finally, if you are buying a domain name and are shown a copy of
an appraisal by the seller, find out where the appraisal is
from, before believing everything you see before you!
=== Conclusion ===
Domain name appraisals are a useful tool, but their value
depends on how the appraisal is generated, and the actual price
of a domain name will ultimately depend on market forces,
whatever the appraisal certificate says.
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