Comments on: Valuate.com Offers Nifty Domain Evaluation Tools

By: Robert Haastrup-Timmi

Robert Haastrup-Timmi — Thu, 05 Nov 2009 22:39:59 +0000

Jorge, you are right that folks would argue endlessly about the formula, however if we take a step back and look at this closely, it makes perfect sense. IMHO, it is probably the most transparent metric to utilize. Google results, provides the benchmark that anyone can easily relate to. The domain industry must set the standard, just like oil cartels set benchmark oil prices. Infact, every asset e.g oil, currencies, stocks etc all have benchmarks and they all trade at a premium or at a discount potentially to ZERO! I believe once this sort of benchmark is set, buyers from all walks of life can make sense and base intelligent buying decisions on domain assets going forward. Plus, the metric will provide excellent arbitrage opportunities as well, as google keyword results fluctuate on a daily basis. Think prudently about the market psychology of what i’m suggesting. Everyone wins!

By: jorge

jorge — Thu, 05 Nov 2009 22:01:10 +0000

@Robert I like your idea, but people would argue endlessly about the formula.

BTW: DomainBookValue.com is for sale.

By: Robert Haastrup-Timmi

Robert Haastrup-Timmi — Thu, 05 Nov 2009 21:40:57 +0000

Nebraska, Interesting point you make! here is what I think should happen an is probably the missing piece:

1. The big domain registrar’s and influential domainers should convene to create a benchmark standard i.e “Domain Book Value”

2. Base book value on a “backed” metric model that is mostly transparent to everyone and stable like gold i.e google “keyword” results.

3. Start with a dollar parity of $1.00 multiplied by google keyword results, divided by 1000, to achieve domain book value.

E.g: CarInsurance.com currently shows 97,400,000 X $1.00/1000 = $97,400 domain book value.

Now that domain name can be traded anywhere e.g auction, listings, or private sales at a discount or premium to it’s “theoretical” book value. If it sells at say $974,000, which is above book value, then it is trading at a multiple of 10x domain book value, if it trades less than $97,400, then it simply sold at a discount to it’s domain book value.

This is how CPM’s are generally derived in any form of advertising e.g print, internet and tv. It can certainly work for domain names and would help create & ferment more credibility for the domain industry that desperately needs the end user buyer to acquire domains as “ASSETS”. I’d like to know anyone’s thoughts and response to my suggestion here.

The mathematical formulae can easily be plugged into any appraisal site such as estibot or valuate and then promoted on websites such as sedo, godaddy, buy domains etc…

By: Nebraska

Nebraska — Thu, 05 Nov 2009 19:46:07 +0000

If and when valuation companies start backing their estimates up with an offer to buy the domain – even at a steep discount – I think then we could take them seriously. Who knows, maybe they would create the market that Bido has been trying to do.

Heck, for many of my domains I would sell for 10% of the auto-valuation. Personally, I think they value domains on the high side so that domainers will talk about their services. Would we really be interested in a service that assigned values that were closer to Bido sales?

By: Robert Haastrup-Timmi

Robert Haastrup-Timmi — Thu, 05 Nov 2009 03:56:55 +0000

Andrew, thanks for bringing the new valuate interface to our attention. Here is what i’ve observed and have suspected to some degree…check this out:

housinginsurance.com – $5700
housinginsurance.co.uk – $8300

Why does the .co.uk hold more value? I’m wondering Andrew if this is because there is more adwords bidding intensity in the UK on .co.uk terms. What do you think Andrew?

Essentially, valuate has given alot of my .co.uk domains very impressive valuations. e.g incentiveprograms.co.uk is coming up $27,000 only $1000 less than incentiveprograms.com.

Even though auto appraisals are way off, I have to say the interface metrics on valuate.com is very impressive and should help boost sales once more end user buyers start checking this out! As for .co.uk domains, I believe good .co.uk domains may be construed as gems!

By: Riq

Riq — Thu, 05 Nov 2009 02:57:39 +0000

Andrew, I think you’re absolutely correct; I’ve noticed myself that these automated tools tend to allocate too much of a premium to single (versus two or three) word domains.

By: Andrew Allemann

Andrew Allemann — Thu, 05 Nov 2009 02:20:58 +0000

Riq – point taken.

I suspect the reason here is that New Orleans and Salt Lake City are more than one word, which somehow gets taken into the equation.