With the launch of Saw.com’s new appraisal tool we look at how such tools can help buyers and sellers alike understand the value of domain names. From selling a domain, inquiring about a domain or actively looking to buy a domain, the Saw.com tool is an innovative approach to domain appraisal.
Many end users know about domain names on a basic level. They know what one is, they know who GoDaddy is, but most don’t know about the domain name aftermarket or the intrinsic value good domains have. When negotiating with an end user over the value of a domain name, appraisal tools can be key in showing these users how and why a domain has value.
Pairing this with historic sales can really open peoples eyes to the value of domains and help negotiations move along. Since the end user now has a better understanding of why domain names have value beyond their registration fee.
Benefits of Appraisal Tools
From an investor point of view, appraisal tools help in a few ways.
They can separate the wheat from the chaff when analyzing long lists of auctions and drops. Therefore, highlighting domain names that are worth investigating more. They can also provide a deep dive on a shortlist of names. For example, say you found 5 domain names ending today at auction. However, your budget allows you to concentrate on 2 or 3 of them. Using an appraisal tool can help you pick out key data points. This can be the difference between dismissing or pursuing a name.
Some appraisal tools simply give a dollar amount. Whereas others show you, at least in part, how they got to that valuation. These data points can include TLDs registered, search volume, cost per click, trends and similar past sales, to name but a few. These metrics allow end users to see how a good domain could benefit their business in terms of reducing advertising budgets or getting free type-in traffic. For investors, these metrics show where the specific value lies in each domain. Depending on your business model, you can pick and choose domains that fit your style best.
How Saw.com’s Appraisal Tool Works
Using the example domain name, Unicorn.com, the Saw.com appraisal tool gives the following appraisal and breakdown:
Unicorn.com | Estimated Value $ 1,780,000
The first section gives users information about the .com extension and it’s dominance
- .COM has 5X more registrations than the next popular extension.
The next few sections analyze the SLD and detail it’s key benefits
- This is a category defining domain name.
- This domain is highly memorable and easy to spell. These factors increase the value.
- This keyword is in such demand that it is registered in over 350 domain extensions.
- Wow! The term Unicorn is searched around 165,000 times per month!
Next, the registrar is checked and the details of the domain are given
- This domain is registered at a registrar for large corporations. Manual review is recommended.
The domain age had been confirmed and the value of this explained
- The Unicorn.com domain has been registered for over 28 years. Similar domains of this age are very high in value.
Different domains will trigger different data points, but these are the main ones for a solid .com.
Appraisal Tools Show You The Value
Another use for appraisal tools, for both end users and investors, is that they can provide insight into the potential value of such digital assets held within a business. This can be helpful for business valuations or when looking to sell, merge or partner with another business.
To summarize, different appraisal tools can value domains at wildly different prices. So, be sure to use one that shows why the domain has value. Additionally, pair that with historical, similar sales and the current climate to reach your own valuation.
At Saw.com, we love domains and everything they encompass. With over twenty years of experience in the industry, we have made it our mission to help companies and organizations understand digital assets’ role in the ever-changing internet landscape, every step of the way. We specialize in domain acquisition, appraisal, company naming, branding, brand protection, portfolio management services and more.
No matter the nature, stage, or size of your company, we believe in helping you be seen online and we pride ourselves in our transparency through the entire process. If you are interested in speaking with an expert from our domain brokerage service about buying a domain, contact us! Our domain brokers would love to speak with you.