Domain name valuations represent a critical step in the disposition or acquisition of any domain name. This holds true even for end-users of domain names. Fortunately, through a simple four-step process, the domain brokers at nameexperts.com have made it simple to accomplish the daunting task of valuing a domain name.
Key Metrics Analysis: Every domain name valuation starts with a key metrics analysis. In this stage, we’ll take a look at the most important aspects of the domain name. Does it have a potentially lucrative keyword focus? Is there a significant amount of existing backlinks? What potential would the domain name hold for a potential end user? These are the question that we seek to answer at this stage of the valuation.
This analysis may vary based on the niche that a certain domain occupies.
Strengths Identification: An effective domain name strategy will capitalize on the strengths of the name. In the strength identification step, we analyze what the domain name’s greatest strengths are to inform the overall acquisition strategy.
Weaknesses Evaluation:With key metrics and strengths identified, finding weakness in the domain name is simple to do. What’s not so simple, though, is evaluating how those weaknesses can be shored up by leveraging the strength of the domain name. For example, a given domain may hold strong value for an end user, but not so much for an investor looking to build a site that wins ad dollars. Knowing the difference between those two is where a savvy domain broker proves his or her value.
Comparables Summary: If you’ve ever purchased or sold a home, you’ve probably received a comparable summary—an analysis of similar homes. The concept is no different with domain names. Except with domain names, you’ll be looking at the potential brand value, rather than granite countertops, to arrive at a domain name valuation.