Domain Name Valuations & Appraisals
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Domain Name Valuations & Appraisals


Domain name valuations and appraisals are
not rocket science. And domain name valuations and appraisals
are definitely not an art form, open for only the most seasoned investors to conduct. A domain name valuation and appraisal methodology
does exist, can be taught, and you can do it. Hey everyone! Thank you so much for joining me on today’s
DNAcademy podcast. My name is Michael Cyger, and I’m here to
help you become a more profitable domain name investor. Four words for you when you are doing domain
name valuations or appraisals: Characteristics=>Comparable Sales=>Pricing If you don’t remember anything else about
domain name investing, domain name valuation and domain name appraisals, start with those
four words. Because if you remember those four words,
you can likely fill in all the other gaps in your investing knowledge. Let’s start with an example we can all relate
to: physical real estate. When you’re in the market to buy a house,
you run comparable sales to determine the fair market value for the house you want to
make an offer on. Let’s say you like this house in the Queen
Anne district of downtown Seattle, a short, 1.2 mile walk to Amazon.com’s headquarters. How do you determine if the asking price of
$2.2 million is fair? You look at comparable sales for that house,
of course. But in order to search for comparable sales,
you need to determine the characteristics of the house you want to buy so you can find
similar houses that have sold, right? It doesn’t make sense to pull comps for houses
that sold on the banks of Lake Union with a water view, if the house you’re looking
at is land locked. And if the house you’re looking at is two
bedrooms, why would you pull comps for four or five bedroom homes? If you were a Realtor or real estate broker,
you know that there are a lot of factors to take into account when valuing or appraising
a house and finding comparable sales. Characteristics like location, age, house
size, number of bedrooms, number of bathrooms, total room count, property size, amenities,
style of the house, quality of public school district, and curb appeal, among others. The same is true for domain name valuation
and appraisal. There are 23 characteristics that define the
quality of a domain name. Domain name characteristics include: the top-level
domain, word count, character count, search volume, keyword type, radio test, pre- and
appending, plural and singular, and word placement, among others. Going into the details of each of the characteristics
is beyond the scope of this video, but suffice it to say that each characteristic is a lesson
in itself. Identifying how a domain name meets each of
these characteristics then allows you to find PROPER comparable domain name sales. From that point, once you have the right set
of comparable domain name sales, you can then calculate what the retail price of your domain
name should be. In DNAcademy, I also teach you how to determine
the likely maximum value — if the stars aligned and the highest and best use case buyer came
inquiring about the domain name. And I also teach you how to determine your
wholesale value, which is the price you should aim to buy the domain name at. Which is also the likely price you could liquidate
the domain name for in the future to another investor. Once you understand the 23 characteristics,
how to find proper comparable sales, and how to determine your retail, maximum and wholesale
values, you will never again ask for help in valuing or appraising a domain name. You will know how to properly properly do
domain name valuations and appraisals. If hope you found benefit from this video
and it’s been helpful to you in your domain name activities. If you want a structured methodology with
a step-by-step roadmap and set of tools that teaches you to invest more analytically, consider
signing up for DNAcademy. Thank you so much for making the decision
to watch or listen to the DNAcademy Investor Insights blog. If you want to subscribe, go to dnacademy.com/itunes,
dnacademy.com/stitcher, dnacademy.com/youtube or dnacademy.com/newsletter to sign up. My name is Michael Cyger and I’m here to help
you become a more profitable domain name investor. Please subscribe to this podcast, and I’ll
see you in the next episode.

8 Comments

  • Eli Ely

    Another great video…! I have several domain names, will you help me selling them. I will take care of your interest as well.? How to reach you please?

  • kiran f

    What is you opinion about using some stylized sentences for selling?… like:- " you might have heard about gold under earth but what about gold under dotcom" . Does this strategy work or does it back fires (reduce interest of potential buyers)?

  • Joe Ninety

    How can you get an accurate valuation, when people like Omar & Will, say GoDaddy valuations are rubbish. Who can you trust?

  • Jay B

    The free valuators are worthless. Iv owned Domains which were appraised for $1200 by Godaddy, $0 by Estibot, & $2000-$3000 by an expert. Iv also seen where Godaddy appraised at over $1000 but an expert said were only worth $200 – $500. I'v even seen where Godaddy contradicts itself. Where it says a domain is worth $1200 but on its "explanation as to why" it lists that the SAME domain sold before for $3000! So why would the domain only be worth $1200 if it sold before for $3000? LOL I wouldn't put much stock into these free online appraisals. It's better to learn how to do it yourself.

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