Since DomainAppraisal.org’s inception in 2007, we have been continuously updating our methodology and data analysis methods to pinpoint the true market value of a domain name. The applications of our appraisals vary greatly due to their inherent objectivity and accuracy. Our appraisals are designed to instill confidence in organizations and individuals alike. The accuracy stems from the application of our methodology through a regimented, standardized process in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP).
Our methodology begins with the research and collection of data pertaining to our industry leading factor base. Depending on appraisal purchased, the number of factors used in the analysis will vary. The Basic Appraisal uses 15 factors, the Premium Appraisal uses 25 factors, and the Enterprise Appraisal uses an industry-leading 30 factors. The data is collected through a standardized process that allows for consistency across appraisals. The methods, third-party tools, and expert appraisers are constantly monitored for consistency and accuracy. Since our valuations are not strictly formulaic, a contextual and comparative analysis is performed on the data collected.
The contextual analysis examines the impact of factors that are not easily quantified such as current market conditions, industry trends, as well as external factors such as traffic generated through an existing website, potential trademark issues, and possible end users. The purpose of the contextual analysis is to provide insight into how the current situation of the domain name and current trends affect its value. The contextual analysis of a domain name is a key differentiating component between an automated appraisal and a professional appraisal.
The comparative analysis examines the various factors that have the ability to be quantified such as keyword search volume, CPC (cost-per-click) advertising cost, TLD (top-level domain) and domain name length. Following the examination of the quantified factors, a comparison is performed between the domain name being appraised and similar domain names that have previously sold on the open market. The comparative analysis utilizes a database of domain name sales to create a correlation between domain attributes and selling price. Once a correlation is determined, it is applied to the appraisal to add market-proven reliability to the appraisal.
Once the factors have been analyzed, the fair market value is determined. The fair market value is in the form of a range. The reason a range is used instead of an exact value is because the probability that the outcome will match the expected value is very low. The range covers a large part of the fair market probability range. It is still possible that a domain name could be sold for a value outside the range. A specific situation where this is a possibility is when an end-user might purchase a domain name for far more than its fair market value. This does not mean that the fair market value of a domain name is equal to the purchase price that an individual is willing to pay. The company or individual interested in the domain name might have specific needs for the domain name which cannot possibly be taken into account when determining a domain name’s fair market value.
After the appraisal value has been determined and the appraisal report has been created, a senior manager validates the data collected and approves the domain name value. Once the appraisal has been approved, a report including all of the appraisal information is delivered via email.
External traffic factors consist of attributes associated with a domain name because of an active or previously active website. These factors consist of backlinks, Google PageRank, Compete rank, Quantcast rank, and Alexa rank.
Our valuations are on domain names and not the websites. Applying our services to entire websites is a very different service. In fact, it has little to do with domain names and a lot to do with businesses, in general. In the case of a domain name with substantial external traffic factors, we want to value the domain name by itself, simply because that is the service we are providing. The rationale behind our stance on external traffic factors is that if a domain suddenly ceased to host a website, the traffic to that domain name would not cease, but descend gradually. Through readily available methods, that traffic could be exploited and money could be made from that domain name, raising the fair market value of that domain name. Value determinations are made based on the expected rate of descent, current traffic, and future traffic estimates.
Our methodology was created with the intentions of providing transparency and consistency to the largely-speculative domain name appraisal industry. Being an independent appraisal company and having nothing to gain from inaccurate appraisals, we can provide unquestioned objectivity with our methodology and valuing of domain names. With the majority of companies who offer appraisals either not specializing in appraisals and/or offering conflicting services, it becomes increasingly difficult to guarantee an objective and accurate representation of a domain name's fair market value. Additionally, most appraisal companies do not educate their customers on their appraisal methodology, factors, and rationale used to determine a domain name's value. Without transparency it is difficult to gain a clear understanding of a domain name's value composition. We work very hard to provide our customers with as much insight and understanding about our methodology as possible and to create a new standard for the domain name appraisal industry.
Yes, customers purchase the Premium Portfolio Appraisal for many reasons including to gain additional leverage when buying or selling groups of lower value domain names.
Yes, we take every precaution to make sure that your payment and personal information are secure. Our technical staff constantly monitors the integrity of our servers to ensure that your experience with domainappraisal.org is a safe one.
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