Domain Value Algorithm

[EstateNIC]

Hello

I am trying to determine a generic algorithm for defininig the value of a domain.
I would really be happy to hear from you. And of course your opinions as well.

I know this is some kind of basic mathematic but I am sure everyone would deal it easily

Here are some example parameters that might be helpful for you:

Options:
10 point to Alexarank of that domain.
2 point to Pagerank (i.e. if domainname has pr4, then it has 4*2 = 8 points)
2 point to each degree of LinkstoThatdomain (i.e. : 100 links to that domain then it is 6 points, 10 links to that domain then it is : 4 points)
2 point KeywordOrNot
4 point Pronouncable
1 points Other Extensions of that domain (Are registered, used or not, their pagerank)
5 points LengthOftheDomain
3 points ExtensionOftheDomain. (3 point for .com , 2 point for net , 1 point for org/info)
2 point yearofthedomain
2 point DmozListed
2 point archieved or not.

I just gave an example like that. Lets generate a common algorithm with all domainer guys.

And the list can go on. I will write Just please tell me more options that we can count on when we estimate a domain's value. After that maybe in other topic or here, I would be really happy to discuss how much of those options are effecting the price (meaning how many points each option). But this is the second step. So please let me know what properties of a domain you are looking for to estimate its value. Please indicate yours.

After discussing all, i might prepare a better domain appriasal tool that might estimate the domain's value properly. I know it cant give an absolute value of a domain, but it can get near to it in sense.

Thanks.

 

[Gregcyber]

----

 

[EstateNIC]

Yes i have already written that : "yearofthedomain" or are you meaning another thing that i misunderstand ?

Dear moderators:

May you please move my post to more proper section :http://www.dnforum.com/f4/ which is domain appriasal thread ?

Sorry for the inconvience.

Thanks for your effort.

 

[TheLegendaryJP]

Don't bother, there is no formula you can create that will factor in what is important.

What you want to create anyone with experience, real experience can valuate in 10 minutes with a date/traffic/use, comparable and gut check.

 

[EstateNIC]

I told that i cant do a 100% accurate algorithm , but we can get near to the real value of a domain. Thats how science works

Those are the facts that effects of a value of a domain. Dont tell me people are not counting on those parameteres of a domain when they make appriasal to a domain..

 

[TheLegendaryJP]

I told that i cant do a 100% accurate algorithm , but we can get near to the real value of a domain. Thats how science works

Those are the facts that effects of a value of a domain. Dont tell me people are not counting on those parameteres of a domain when they make appriasal to a domain..

I wont argue this with you but you will NEVER get close most of the time, heck even a small fractional percentage of the time so therefore its a waqste of your time.

There are FAR too many factors that " science " or in this case numbers do not account for, no pun intended.

 

[EstateNIC]

I wont argue this with you but you will NEVER get close most of the time, heck even a small fractional percentage of the time so therefore its a waqste of your time.

There are FAR too many factors that " science " or in this case numbers do not account for, no pun intended.

I wish you were cleared your idea based on some knowledge you would provide. I am not saying lets estimate a domain for what can be the sale price, i am telling you to value the price of it.

I know that a domain like business.com's parameteres might be insufficient to value it, but the keyword is very valuable.

What i mean is, the most important of the valuation of a domain is the keyword's itself. But believe me, there might be ways to value it too.

At least, i can categorize the keywords and give the points to each of them.

So please provide me the reasons underlie your thoughts instead of only opinions itself.

Thanks

 

[TheLegendaryJP]

My thoughts come from experience, millions, multi millions in sales and having to value names properly or not eating.

You cannot create a tool to get close most of the time, period. A simple tool like dnsaleprice which provide comparables is one of the BEST alone, using a tool to look at traffic or past traffic meaning potential traffic, looking at the keyword or industry and having a good gut is all it takes. Sure you can add value by pitching age, length etc but the basics you cannot escape. If a vegetable.COM sold for $25K last week your vegetable.COM is worth that give or take based on what I mentioned above, how strong is the industry for the vegetable, how does traffic compare, was it a reseller or end user price etc.

If you can get more by pitching it as a older name, great but no tool will KNOW how good oranges.com vs garlic.com is in the real world.

 

[EstateNIC]

You are considerng the traffic, but a parked domain like "fly.com" (for example) might not have any traffic but it has a value right ?

 

[Gerry]

but we can get near to the real value of a domain.

Why do you want to reinvent something that is of no use???

There are plenty of "tools" out there that give a bogus value based on some sort of algorithm.

The real value is the determined by that person on the other screen punching the "enter" button when making payment.

 

[TheLegendaryJP]

You are considerng the traffic, but a parked domain like "fly.com" (for example) might not have any traffic but it has a value right ?

Exactly and exactly why a tool alone will never account for the word itself, industry etc.


However market shift is another thing you cannot account for, from 2006-2008 I sold several generic domains based solely on the keyword, those days are gone, no tool could adjust for down turns in the economy if it keeps using past data.

 

[Gerry]

You are considerng the traffic, but a parked domain like "fly.com" (for example) might not have any traffic but it has a value right ?

See estibot.

Again, a tool, a guide, already in use.

 

[EstateNIC]

So how you guys are finding domains ? Please let me know your way.. looking only the keyword of the domainname ?

The estibot is very bad.. Thats why i bothered here.

 

[TheLegendaryJP]

Not sure exactly what you mean by finding names but basically yes, keywords/generics and using the simple tools to evaluate. If you ever need help or advice just PM me.

 

[EstateNIC]

Thank you, but with using tools, you are using some iformations right ? I mean you are looking the pagerank, webarchieve .. right ? I am asking for those.

And you are right the keyword's itself is very important than all of the others. But if we dont count the keywowrd we pre-calculate the domain's value. After all, depending the keyword we can estimate more clear value.

Any more houghts?

 

[TheLegendaryJP]

I dont bother to look at web archieve unless whois is bad, page rank only factors in for me when it is important to the buyer, imo a page rank of say 1 will generate traffic the name may not get naturally of course and imo lower the value to a reseller as after dns changes, links drop etc the traffic will drop.

I look at a name in in minutes know what I can offer and what potentia roi is there. I mostly use dnsaleprice.com and clickmojo, period.

 

[katherine]

I told that i cant do a 100% accurate algorithm , but we can get near to the real value of a domain. Thats how science works

Appraising domains is not science but art

I agree with JP that looking at comparable sales usually provides a good measure of the market.

Don't waste your time, other have tried and failed. And estibot is crap, yet it seems to be most advanced such tool

Those are the facts that effects of a value of a domain. Dont tell me people are not counting on those parameteres of a domain when they make appriasal to a domain..

I think that if you need a bot to understand the value of domains to you need to find another business.

Now imagine you have the perfect tool that can 'accurately' appraise domains 99% of the time... so what ? You ask whatever you want for your domains, people will buy them only if they have the money and motivation, or deem the price reasonable. The notion of 'right price' is best determined by both buyer and seller.

 

[EstateNIC]

Art is a part of science. I mean art supports science and science proves art. Ex: look at mona-lisa paint. The science proved that why people liked it so much. (For more info you can look at "golden ratio" in google)

Since you are looking to the past sales related to that domain, this is another paramter when you value a domain. So pleaes dont say it is only "art"

Secondy, taking averages all of the related sales to that keyword can lead us to determine a better value for a domain. At least we can estimate it.

But if you are saying this: I never use tool, i dont look background information, I value a domain becuase of only my feelings then I stop thinking here.. But i dont think it is how it works..

 

[Alan Glennon]

It's possible to mine data off the web and get a pretty reasonable ballpark value for a domain. Identifying and enumerating the various components that make a domain valuable is a requirement for domaining success -- while most domainers do this by "gut" from similar sales, you don't have to. My valuation models usually start with a domain name and a spreadsheet of various parameters -- keep adding useful info about the domain and tweak numbers as values change. When I find that I am no longer adding new classes of parameters, but only changing the data within the cells, it's time to see if the various information pieces can be distilled into a set of equations. When doing this, I suggest using a operations research / constraint programming perspective. Whether your model will have any generic applicability will depend on your modeling talent. There's nothing wrong with trying to quantify a domain's value. Overall, though, if you get good at valuation modeling, you will probably find that your skills are better suited for more interesting and lucrative markets elsewhere.

 

[Gerry]

And estibot is crap, yet it seems to be most advanced such tool

I agree. That was the reason I pointed this tool out.

What the OP would like to do is essentially already done. Instead of asking "why reinvent the wheel", it is like asking "why reinvent a flat tire?"