Domain Name Appraisals: Are They Worth the Cost?

Have you ever thought about having one of yourwhether it be an e, i, the, an, etc.
registered domain names appraised, because youName Recognition - If you're able to register a
were considering selling it and wanted to know whatdomain that can be easily recognized, such as one
a fair price would be? Maybe you're just curiouscommon dictionary word, you'll receive a higher
about how much your domain is worth? Did the highappraisal.
fees for detailed appraisal services turn you off ofName Relevance - If your domain specifically tells
the idea, or are you still considering it?what services or products could be offered by its
Here's a simple fact: Domain names, just like anyweb site, then you'll receive a higher appraisal.
other product or service, are worth whatever theMarketability - Could the domain name be marketed
market will bear.and promoted easily? Does it lend itself to an easy
What that means is that if a domain appraiser tellslogo and site campaign? Can it be pronounced easily
you that your domain name is worth $2500, but thein a radio campaign without being confusing, such as
most you can raise in an auction is $50, then yourhaving multiple possible spellings? Does it look
domain is really worth $50, not $2500. It's basicattractive in print? If the answer to each question is
economics. The market works on a supply-demandyes, then you'll receive a higher appraisal.
system. You're supplying a certain domain name, andWorth the cost?
its value is entirely determined by how much demandIf nothing else, you need to understand that domain
there is for that name. If only one person in thename appraisals are extremely subjective, and you
world is interested in buying it from you, its value willcould receive very different appraisals from two
be pretty low (unless of course you're a squatterdifferent appraisal companies. In a general sense,
who jumped on a domain someone let expire, andunless you absolutely must, a domain name appraisal
you're demanding an obscene price for it). On theis likely not worth the expense. When selling a
other hand, if thousands of people desperately wantdomain name, many buyers require that you provide
the domain name that you're selling, the price somethem with one. Some even tell you what appraisal
people are willing to pay can skyrocket, making yourcompanies they will and won't accept. If that's the
domain name worth thousands.case, agree to get the appraisal, but kindly let the
How domains are appraisedcustomer know that if they demand one, they'll be
Domain appraisal isn't an exact science. A number ofresponsible for the fee up-front, or you'll add it to
factors are considered, ranging from the length oftheir bill when processing the sale. Other than that, if
the domain to the domain extension. Here are someyou want an honest opinion on one of your domain
of the considerations:names, there are countless free forums on the Web
The domain extension - A .com domain is alwayswhere experienced professionals in buying and selling
valued higher than a .net, .org, or other extension fordomains will give you their free input, based on what
the same name.they've seen similar domains sell for recently. It might
The length of the domain name - Domains tend tobe a better use of your time to get various opinions
be valued highest if you avoid going over 12 - 15that way, and decide for yourself what you feel
characters.your domain is worth. And if you considered getting a
Dashes and Numbers - You'll receive a higher appraisaldomain appraisal simply out of curiosity, remember
if you avoid using numbers and dashes in yourthis: your company's domain name is as valuable as
domain name.you feel it is. If you couldn't run your company
Domain Prefixes - You'll receive a lower appraisal ifwithout it, it's priceless.
your domain name starts with any kind of prefix,