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Domain Appraisal

Flippa Announces “Crowd-Sourced” Domain Appraisal Tool

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In a blog post yesterday afternoon, domain and website auction platform Flippa announced the launch of a new domain appraisal tool that uses crowdsourcing to get its domain name valuations. Flippa users are encouraged to provide their appraisals of submitted domain names, and there are incentives for participation including listing upgrades and account credits. The idea is that the valuation can be seen as more accurate when a large group of people provide their opinions.

Although I like the concept and think people may be able to get an idea about whether or not their domain name is worth something, I think it's tough to get reliable appraisals from people who may not have domain valuation or sales expertise.

One issue is the (more…) → Read More


Why I Like Valuate.com and Estibot

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Domain investors tend to be critical of Estibot and Valuate.com (which uses the domain appraisal algorithm from Estibot). These two websites offer free automated domain name appraisals, and in my experience, the appraisals aren't all that accurate. In most cases, the domain appraisals tend to be beyond retail value, but that's just in my opinion.

That being said, I think a domain appraisal service like Valuate and Estibot can actually be good for domain investors when it comes to selling a domain name.

When you do a Google search for "free domain appraisal," Valuate and Estibot (more…) → Read More


Favorite Reply to a Domain Appraisal

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On occasion when dealing with buying a domain name from someone who doesn't have much domain name experience, I will receive a counter offer that mentions a domain name appraisal. Typically, the person wants to justify a higher asking price with a domain name appraisal they received at some point. More often than not, the appraisal was purchased, so it comes from one of the leading brokerages.

In the past, I would explain that I think domain appraisals are BS for many reasons, including the fact that they are offered by companies who want to sell the domain name on behalf of the owner, so a higher appraisal makes it more likely that they will sign an exclusive listing. I have a "boilerplate" response somewhere in my email archive, but lately I've preferred to respond more humorously:

"If domain appraisals were even remotely accurate and reflective of the real world market, I would have already sold my domain portfolio, retired, and have not inquired about your domain name."

As you can see, I strongly dislike domain → Read More


Group Domain Name Appraisals

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I don't like appraisals. I think they're pretty much worthless, and I wouldn't pay someone to do an appraisal for me because it's just not possible for a third party to accurately value a domain name.

I believe domain name is worth what someone will pay for it at a given time. That goes for your names and my names. A domain name that I think has no value may have tremendous value to someone with the capital to buy it while a can't lose domain name can languish in an owner's portfolio for years.

That being said, I am welcoming you to submit one domain name for a group appraisal. Visitors to my blog are welcome to appraise domain names if they would like to participate.

Hit "reply" and type what you think the name is worth. If you have the time and desire, please offer some insight into why you think it's worth what you said it's worth. You could also simply click the "like" or "dislike" buttons to agree with an appraisal.

Whether the actual appraisals are on target or not, I do think it's good to get a range of opinions.
→ Read More


Value of a Domain Appraisal

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On Labor Day, I wrote a blog post offering a free domain appraisal for anyone that was interested in getting one. As you might imagine from the number of replies, I was overwhelmed fairly quickly.  Of course, my apologies to those who didn't get a response due to time contraints.

Although I don't believe domain appraisals are completely worthless, I don't think they hold much value, other than being more of a guideline. I am a domain investor and I certainly don't value domain names at the same levels end users might, unless I am going to be the end user. As the saying goes, a domain name is worth what someone will pay for it.

I don't have experience or expertise in such a wide variety of businesses that I could give accurate insight to niche domain names. The same can likely be said about the companies that sell domain appraisals. They may be able to give an analysis of market conditions and how similar names sold, but with domain names being a unique entity, even comps aren't all that accurate.

Some people are willing to → Read More


Free Domain Appraisal

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I get asked all the time what I think a particular domain name is worth, and today I would like to offer this space for you to request a single domain name appraisal on this slow Labor Day. I will do my best to give my gut feel on domain names that are submitted, and I hope others will provide their valuation thoughts as well.

The one rule here is that people can only ask for one domain appraisal each, or I won't answer. The reason is simple. I don't have the time to give everyone an appraisal on many domain names, so it's easier to say just one.

Please keep in mind this is my (and commenters') gut feel on valuation with perhaps a bit of additional outside research, like search volume, Wordtracker, # of advertisers...etc. If you have very industry-specific domain names, there's a good chance I won't have a clue about how much your domain name is worth, so it's probably best not to submit it.

If you think there's a chance I will tell you that your domain name isn't worth anything, and you don't want to hear that, I advise you → Read More


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