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Valuation factors for internet domain names
06-07-2003, 06:46 AM
Post: #1
Valuation factors for internet domain names
i've been reading all the posts regarding valuation of internet domain names since the discussion was started. humbly i must say that i, myself have been an internet domain names investor for more than 3 years(with having registered more than 300 domain names). some of my domains were evaluated by '' for the price range of $25 - 40 k but no buyer turned up. highest bid i ever received for any domain was for '' which ended at $5 k, and was turned down by me. even, once i faced an international law suit which was successfully defended by me, against claim of one of my registered domains. however, being having personal experience of buying and evaluation of domain names, for the interest of accounting pros i'm giving herein below major factors which should be considered for valuation of internet domains names, shortly also called 'domain names'.
1. length of name (in characters);
2. language of name (in which it's typed and read, in case of multilingual name);
3. popularity of the name;
4. sound effect of the name;
5. pronunciation and rememberability of the name;
6. economic and market value of the name;
7. generic name value;
8. dot value;
9. dot competitive vale;
10. country code vale;
11. gtld plus country code value;
12. brandability;
13. trademark, service mark registration value;
14. religious, cultural, art and social value and
15. personal and instinctive value.

this is not an exhaustive list of elements to be considered because it's new, developing and growing market and with the passage of time it's being purified by stakeholders.
I've also read that negotiated deal for for $ 3 million but they use only 'five stars' criteria for valuation. simply speaking, they consider only five elements for valuation of any domain name (one of their valuation report is still available with me for which they charged $75) whereas I've listed 15. please….. it doesn't mean that I know better than people, rather it means that their criteria was set about 5 years back and now so many other factors have surfaced-up to be considered.
all remarks welcomed. in the end before concluding I must say that discussion would have been quite informative, timely, good and healthy but somehow it turned-up to be some sort of personal battle between theone and the paki.
I must also say without considering favour of anybody that as far as internet world is concerned, theone was in the right… as far as I could understood, question was 'valuation' of domain names whereas paki was always concentrating upon 'recordable book value' of the same. I hope my post would be a notable reply for the original question of theone.
anyhow, I'm not concerned with their personal feelings in between them, I bless both of them. all remarks are welcomed but those should only be concerned with the subject. please….. I don't like and I can't afford to have personal debates like between paki and the theone at any forum.
I'm sorry I missed one of the important factors... i.e. the "Hit Value" of any domain name. For example if website is developed [or even webpage is launched with a message "Launching Soon"] then, sometimes the name is so attractive or commonly searched that it attracts many hits a day... which means potentially a great advertisement value...

Edited by - zasheikh on Jun 11 2003 113839 PM
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06-07-2003, 02:53 PM
Post: #2
right mate, and thanx for the detailed info aswell.
and could u pls. explain what it is when u say 'dot value'?

and u say the question was 'valuation of domain names' and I was preoccupied with 'the recordable book value'. just for a better understanding le'me copy parts of the question for u here

"Can my respected Good Oldies give any criteria for valuation of this sort of "Intangible Asset"????? Is there any ACCOUNTING STANDARD for "Domain Names" Valuation?????"

Then u say 'as far as ----- theone is right', well I only saw him producing prices for different domains, never suggested anything.

Besides nobody was replying to the topic, so I think we two decided to have some fun the same time. and I think ur list definitely does settle the question, aright.

and yeah, what is this 'gtld' in the 'gtld plus country code value'?

Me rulz
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06-08-2003, 03:30 AM
Post: #3
dot value [also called 'extension value'] means the "value of any domain due to being a .com, .net or .org... now i suppose you can work out by yourself the differences amongst them;
secondly, as far as i could understood, theone was talking about role of a 'valuer' whereas you were talking about the role of an 'accountant'. i agreed to theone only to the extent of his arguments regarding brandability and market value of a 'lost' name. it's my perception and understanding, however if you disagree, it's upto you. i'm nobody to certify anybody. now please, i'm not interested in any sort of debate.
thirdly, gtld stands for 'generic top level domain' and gtld value means 'value added to any domain name due to it's generic origin and the 'dot'. [please don't mix dot with gtld because gtld normally include only those domains which are open for registration to general public whereas dot also includes specialised domains like .edu, .gov or .int]
fourthly, example was rightly quoted by theone that of '' and ''....
to be short, is obviously more valuable than or this is gtld plus country code value.
[sometimes back i had written a short article about valuation of domain names. now i'm thinking to find it out and send it to if it happens and it's published, then probably you could found many further explanations with examples.]
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06-14-2003, 03:31 AM
Post: #4
Though may basic question is still answered... may be your article would do that...however very nice & quite understandable explanations. Your answer has surely given me principals for answer to my basic question. I'm waiting for your article, please send it asap.
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