When we developed our domain name valuation algorhythm, we placed a number of variables to fetch from online resources and we actually failed to deliver on one factor- BRANDING NAME POWER or BRANDABILITY. How do you determine the value of a domain name based on brand? The answer is quite simple- the buyer can and the seller cannot. I have shared free domain valuations with people of the domain community and it has never failed to amaze me in what the replies have been.
“No way mate it’s worth WAY MORE than that!” or “That is not even a realistic value because nobody would pay that for a .au domain name.” are a few examples. I have also been fortunate enough to valuate a few domain names and actually be proven right in regard to genuine offers or domain name sales. For example, a domain name that I valued approximately 9 months ago to be of a higher end X,XXX on a wholesale level and low to mid XX,XXX on a high end level and even stated the approximate dollar value to the owner.
I received a kind “Thank you James for your time.” email from the person and I never gave it a second thought. The domain name has since changed ownership and from what I recall, the seller received approximately 90% of what my dollar value was that I appointed to the domain name.
We are investors and we have developed out quite an awesome network of pagerank websites for our company and our clients. We have only sold 6 domain names in the last 27 months. However, we will have some front page news with a domain name sale very soon. This brings me back to my point of how to value a domain name and the addition of BRANDING POWER as a factor. I could not determine the value, although when we purchased the domain name aftermarket I knew there was value.
Beauty is in the eye of the beholder. The BRANDING POWER VALUE is valuated by the BUYER.
