Domain Name Appraisals

Have you ever triedto sell a domain name?

Some domain name reseller services insist that the seller gets an appraisal or valuation of their domain name before they will list it for sale.

I first wrote about this subject several years ago, but it seems that some people still don't learn. I know because I get loads of emails from people asking me for my valuation of a domain name.

So, let me say it loud and clear here:

There is no accurate domain name valuation service available anywhere at any price.

The only valuation you can rely on is your own, along with that of a purchaser - when you both agree a price and neither of you feels any remorse, then you've reached the right price at that moment in time.

So what if your buyer goes on to develop the name into something worthwhile and more valuable, making a profit on the deal later on? Sorry, but that's what buying and selling is about.

Consider for a moment that you own a piece of land that's empty. You know that it would be worth a lot more with a property on it, but you can't afford to develop it and you don't have the skills and experience to do it yourself.

In such a case, you'd get what's called, "land value". Someone else will take the risk and build on it, making their profit on their own efforts - nothing to do with you of course.

Another situation with the same land might be that the buyer knows he'll be able to sell it to somebody else to build on, somebody he knows is looking for land in the area. Somebody you don't know.

In such circumstances, you might well feel disappointed and ripped off, even though you haven't been.

The same is true of a domain sale.

Undeveloped, it's just a name and is only worth what someone is prepared to pay for it at that time. Tomorrow, you might get a better price. Who knows?

Any value you put on it is purely subjective. If someone agrees to pay your price, fine, but don't fall into the trap of paying somebody else for what can only ever be an opinion, as opinions are the cheapest products on earth. Everyone has them!

With land and property, you can set a valuation, since there is always a basis for comparison.

The same is not true of a domain name since no two names are the same and each will appeal to a different type of end user ultimately.

So, do yourself a favour and never succumb to the snake oil salesmen calling themselves domain name appraisers or valuers.