Domain Name Value

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Lisa at Webmaster World has outlined 13 metrics to judge a domain name in a self-appraisal.

1) Marketability
2) Phone Test
3) Name Length
4) Brand Recognition
5) Development Value
6) Dot Value
7) Site Traffic natural
8) Site Traffic by Search Engines
9) Industry Strength and Positioning
10) Search Engine Popularity
11) Grammatical / Linguistic value
12) Revenue Generating
13) Comparable sales value

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1) Marketability

How many parts make up the name?

A part is classified as a word, a hyphen, or a number.
Example.com has only 1 part, the word “example”.
JoeTheFisherman.com has 3 parts, the parts “Joe”, “The”, and “Fisherman”.
Joe-Fisherman.com has 3 parts, the parts “Joe”, “hyphen”, and “Fisherman”.
1Fisherman.com has 2 parts, the parts “1”, and “Fisherman”.
eFisherman.com has 2 parts, the parts “E”, and “Fisherman”.

1 part award 100 points
2 parts award 10 points
3 parts award 2 points
4 parts award 1 point
5 parts or more award 0 points

2) Phone Test

Try giving out the Domain Name on the phone. How does the domain name sound on the phone.

Does the domain use a hyphen or a number?
Do I spell out a number inside the name ex: (“one”)?
Does the domain use a miss-spelling at all?

If the answer to these questions is all “no” then multiply current score by 5.
If the answer to any of these questions is “yes” then divide current score by 2.

3) Name Length (doesn’t include the length of “www.” or “.” or the ending extension)

Find the highest rule that applies.

If 1 part and the name is less then or equal to 8 characters, then multiply current score by 6.
If 1 part and the name is less then or equal to 15 characters, then multiply current score by 3.
If 1 part and the name is less then or equal to 19 characters, then multiply current score by 2.

If 2 parts and the name is less then or equal to 10 characters, then multiply current score by 4.
If 2 parts and the name is less then or equal to 16 characters, then multiply current score by 3.
If 2 parts and the name is less then or equal to 19 characters, then multiply current score by 2.

If 3 parts and the name is less then or equal to 12 characters, then multiply current score by 2.

4) Brand Recognition

Do people know what the site does even before they even go there?
Either through the meaning of the name or by advertising.
An example of advertising is everyone knows Microsoft.com or ATT.com.
Normal people will need to use the domain meaning to score on this point.

If name has Brand Recognition then multiply current score by 3.

5) Development Value

How much work as been put into Developing the site?
Just a Splash page then multiply current score by 2.
Something more then a Splash page then multiply current score by 3.
Has the domain ever hosted a website that received more then 1000 visitors a day then multiply current score by 25.

6) Dot Value

If .COM extension multiply current score by 3.
If country extension multiply current score by 2.
If country extension is now generic no bonus (example .CC, .TV, .WS)

7) Site Traffic Natural

10-39 natural type-ins multiply current score by 4.
40-100 natural type-ins multiply current score by 8.
100+ natural type-ins multiply current score by 25.
Natural type-ins means (Unique IPs without referrers)

8) Site Traffic by Search Engines

10-39 Unique IPs multiply current score by 2.
40-500 Unique IPs multiply current score by 3.
500+ Unique IPs multiply current score by 4.

9) Industry Strength and Positioning

Does the domain have a calling? If the domain has a targeted industry how crowded is that industry? Does the domain accurately and generically describe what it was registered to do. Here is an example, For a travel agent, FlyCheap.com is a score 3. For a travel agent TravelCheap.com is a score 7.

Describes generically the industry then multiply current score by 7.
Describes specifically something in the industry then multiply current score by 3.

10) Search Engine Popularity

How do the terms in the domain name rank in Search Engines?

“Great”, then multiply current score by 7.
“Good”, then multiply current score by 2.
“All Right”, then no bonus.

11) Grammatical / Linguistic value

Does it sounds correct? Does it read like a human normally speaks. For example: ShoppestMall.com, this sounds wierd. But ShoppingMall.com sounds correct. The plural form verses the singular form makes a huge difference.

If the name sounds correct, then multiply current score by 2.

12) Revenue Generating

Multiply yearly income of the domain by 2.5, add this dollar value to your final price.

13) Comparable sales value

What other domains have sold at that price. Is your name the same score?
Market analysis on your domain price is very important. Being able to justify your price against other domains selling price is key. Don’t do marketing analysis off of list price. Only selling price will work. To find prices of domains that have sold use Afternic or other domain auction sites.

Total score:

Lowest = $15 (40 percentile)
Low score = $25-$40 (30 percentile)
Mid score = $100-$300 (25 percentile)
High score = $500-$1000 (3 percentile)
Extreme score = $1000+ (2 percentile)

The highest score possible is something huge like 6,615,000,000
Score doesn’t correlate to actual price very well, You need to use percentiles to figure out what the price is.