The Domain Buyer’s Weekly Newsletter
Let’s Talk Domains
Appraising your domain name – Appraisal Tools
If you are new to the domain name investing game then appraisal tools have some value. Appraisal tools are a decent way of providing a rough guide to the potential value of your chosen domain name. However, there are some serious downsides which we must remember when utilizing these tools. One of the biggest is the fact that most of the tools available do not take into account the brand potential of a domain name. You may have picked a catchy brandable name but it probably has few if any backlinks and a negligible number of keyword searches. An appraisal tool is likely to suggest a much lower valuation than its true potential.
Take for example the name FitFi.com. GoDaddy suggests a value of $9,304, while Saw estimates its value at $5,000 and Estibot $490. However Atom recognizes FitFi.com’s potential as a valuable brand name and is marketing this domain name for $37,099.
This is how Atom describe FitFi.com:
Domain name Fitfi.com exudes a sense of vitality and vigor, perfect for startups in the health and wellness industry. The concise, 5-letter, 2-syllable name is easily memorable and lends itself to a wide range of interpretations. It could represent fitness, finance, or even technology. The fusion of “fit” and “fi” suggests a harmonious balance between physical well-being and financial success. Visually, the name conjures images of strength and energy, making it an ideal choice for businesses looking to convey a message of empowerment and vitality.
This example goes to show the major discrepancy between appraisal tools and the potential of brandable domain names to make a mockery of the estimates generated from these tools.
Let’s look at another example. Obstacle.io.
GoDaddy suggests a value of $2,031, while Atom again recognizes Obstacle.io’s brand potential valuing it at $34,999.
Atom’s description:
Domain name Obstacle.io presents a powerful and versatile brand identity, evoking challenges to be overcome and obstacles to be conquered. The word “obstacle” suggests strength, determination, and resilience, making it ideal for startups in the fields of fitness, motivation, personal development, and problem-solving. The “.io” extension adds a modern and tech-savvy flair, perfect for companies looking to establish a strong online presence. As a short, 8-letter, one-word domain, Obstacle.io is easy to remember, type, and brand, making it an excellent choice for any business looking to make a bold statement in the digital world.
Exact Match
Names such as HomeCook.org or SolarRoof.net for example, are known as exact match domain names, in other words the name matches the term that people are in the habit of searching for. In these cases appraisal tools can be useful.
Let’s take the term Home Cook. The term has 14,000 monthly searches. To fully understand the potential of the domain HomeCook.org we should consider the possible end users. These could be:
1. Food bloggers or influencers focusing on home cooking.
2. Cooking schools or online course providers specializing in home cooking techniques.
3. Food enthusiasts or communities sharing recipes and cooking tips.
4. Home cooking services or meal prep businesses.
5. Food product manufacturers or kitchen appliance companies targeting home cooks.
6. Recipe sharing platforms or apps.
7. Nutritionists or dietitians offering home cooking guidance.
8. Home cooking YouTube channels or video creators.
9. Food-related forums or discussion boards.
10. Non-profit organizations promoting home cooking for health or community development.
Now let’s look at the range of valuations:
GoDaddy – $3,424
Saw – $5,000
Estibot – $180
Here is another example.
The term Solar Roof has 18,000 monthly keyword searches. Potential end users of the domain name SolarRoof.net could be:
1. Solar panel installation companies specializing in rooftop installations.
2. Renewable energy companies offering solar roof solutions.
3. Roofing companies expanding into solar panel installations.
4. Manufacturers of solar roof tiles or solar panels.
5. Energy efficiency consultants or auditors promoting solar roofs.
6. Green building or sustainable architecture firms.
7. Solar panel leasing or financing companies.
8. Home builders or contractors offering solar roof options.
9. Energy storage companies (batteries) complementing solar roofs.
10. Research institutions or organizations focused on solar energy and roofing technologies.
Now the range of valuations:
GoDaddy – $1,943
Saw – $4.6m (obviously an error in their algorithm!)
Estibot – $450
Here a some advantages of using appraisal tools:
- Convenience: Appraisal tools provide quick and easy estimates, saving time and effort.
- Objective valuation: Algorithms offer an unbiased assessment, reducing emotional influence.
- Data-driven insights: Tools analyze market data, providing valuable information on domain value trends.
- Comparative analysis: Many tools allow comparison with similar domains, helping you make informed decisions.
- Free or low-cost: Most appraisal tools offer free or affordable services, making them accessible.
And some disadvantages:
- Limited accuracy: Appraisal tools rely on algorithms, which may not always reflect real-world market conditions.
- Lack of human expertise: Automated valuations might miss unique domain characteristics or market nuances.
- Inconsistent results: Different tools may provide varying estimates for the same domain.
- Over reliance on data: Tools may prioritize data over other essential factors, like brandability or memorability.
- Manipulation potential: Some users may try to manipulate appraisal results by creating fake sales data or false listings.
Here are 5 well-known domain appraisal tools a few of which we have already touched on:
- GoDaddy Domain Valuation: GoDaddy’s tool provides a comprehensive valuation, considering factors like domain age, length, and keyword popularity. GoDaddy is the biggest player in the domain space and therefore has a lot of data to draw from. However, as with all appraisal tools many deals are done off market and do not form part of the data which the tool uses to generate an appraisal.
Limited number of free appraisals per day.
- Estibot: Estibot offers a detailed appraisal, analyzing data from various sources, including domain sales and search volume.
One appraisal free per day.
- Sedo Domain Appraisal: Sedo’s tool provides a detailed valuation, considering factors like domain age, traffic, and market demand.
$99 per appraisal.
- Saw: Another popular domain appraisal tool offering a free domain appraisal service that uses AI-powered technology to provide estimated values. Their algorithm considers various factors, including:
– Domain age and history
– Keyword popularity and search volume
– Domain length and characters
– TLD (top-level domain) value
– Market trends and sales data
Saw also provides a “Saw Score” which is a proprietary metric that evaluates the domain’s brandability, memorability, and overall value.
Limited to one free appraisal daily.
- Atom: Atom recently launched their own appraisal tool which currently only generates appraisals for .coms. However the tool is free to use and provides a lot more data than competing tools including a domain score and possible end users.
To conclude
As you can see there are significant differences between appraisal tools. Your best bet is to utilize a number of tools while combining the resulting valuations with other data. One important factor being what other extensions are selling for. For example, taking our earlier example, SolarRoof.net. The .io is for sale for $38,000 and the .org $4,500. Therefore a reasonable valuation of this domain name is north of $4,500. Currently it’s for sale on GoDaddy for $2,250.
HomeCook.org is for sale on GoDaddy for $595, however that compares to the .io priced at $10,000 and the GoDaddy valuation of $3,424, therefore a justifiable valuation for this domain could be anywhere above $5,000 with a cap of $10,000.
As well as appraisal tools and price comparisons for other extensions you can also gain knowledge from GoDaddy’s appraisals of past sales of similar domain names which can be a useful indicator of value. That, and your own analysis of keyword searches and cost per click. The general rule is, the higher the keyword searches and CPC the more valuable the domain.
One essential factor to remember is that your assessment of value does not take into account one of the key elements of valuation, when will the domain sell? That is a story for next week.
News
- Escrow.com releases Q2 Domain Investment Index: Escrow.com handled $90 million in domain name sales in Q2, a significant increase from the previous year.
- ICANN sends breach notice to .TOP Registry: ICANN has sent a breach notice to the .TOP Registry for failing to comply with the Uniform Rapid Suspension (URS) and Uniform Domain-Name Dispute-Resolution (UDRP) policies.
- Afternic launches Custom Lander: Afternic has introduced a new Custom Lander feature that allows domain sellers to offer a lease-to-own option and customize their landers.
- Domain sales continue to rise: Despite a slow week at Sedo, domain sales continue to rise, with FG.org selling for $95,000.
- Web3 companies face domain hijacking: Web3 companies are reporting domain hijacking incidents, with attackers targeting domains registered at Squarespace.
- DNS company files antitrust lawsuit against GoDaddy: A DNS company has filed an antitrust lawsuit against GoDaddy, alleging that GoDaddy is unfairly blocking it from automating customers’ DNS change requests.
New To DomainMoonshots.com
Recently added domain names to DomainMoonshots.com include:
Resources
AI Articles – How to make money buying into the AI domain name gold rush
How to Make Money Buying Domain Names articles
We examine various sectors and explore available domain opportunities including:
- Marijuana
- Cryptocurrency
- Drinks
- China
- Life Coaching
Listen to our podcast Domain Moonshots, the show that searches for premium domain names perfect for launching a business or building a portfolio of quality domain names. This week we talk about CreatorCoin.net, a domain name that is a crown jewel in its space, with the .com being owned by X/Twitter and HomeCook.org a name that receives over 14,000 keyword searches every month.
We also operate CoinDomain.store and MarijuanaDomain.store
These platforms are designed for the end user with a great idea or someone looking for that spark. However, let’s not forget the domain investor searching for valuable domain names in growth markets. There are few markets that are experiencing the phenomenal growth of cryptocurrency and marijuana. Check out some of the best available domain names in the crypto and marijuana market.Subscribe here to receive your weekly copy of SHOUT! Directly to your inbox
