If you're new to Cheap Hosting Directory, you may want to subscribe to our RSS feed. Thanks for visiting!

DomainMart has published a monograph ondomain-name valuation. It outlines the strength and limitations of variousapproaches to valuing domain names. It also describes the statistical model usedfor their Appraisal Report.

DomainMart, a leading provider of domain-name secondary-market services, todayreleased a monograph on valuing domain names.

The aim of the monograph is to demystify domain-name valuation and demonstrate,in non-technical terms, that DomainMart is not pulling appraisal numbers out ofa hat. It describes the strengths and limitations of various approaches tovaluing any asset and how the same techniques can be used to appraise domainnames.

“Domain-name valuation is both an art and a science,” says Alex Tajirian,President and CEO of DomainMart. Tajirian adds that “the art comes fromknowledge and experience in understanding the factors that influence the valueof a domain name, while the science involves statistical techniques to quantifythe importance of these factors.” Tajirian underscores the fact that, withoutusing statistical models, the reliability of appraisal values cannot beascertained.

DomainMart has developed a discriminant-regression-tree statistical model topredict the price of a domain name. The model is based on a set of 12 predictorsof demand for domain names and historical prices of sold names. The estimatedmodel yields the best relationship between the specified predictors and value.This relationship is used to predict the price of any domain name. One of theobvious predictors is the domain extension. Another quantifiable predictor isthe number of searches in Google for the keyword/phrase embedded in a domainname.

The model appraises all gTLDs (com, net, org, info, biz), as well as a largenumber of country-code domains (ccTLDs). However, the model is most effective inappraising dot-com domains with no hyphens, as most of the publicly sold domainnames fall into this category. “We don’t have enough data yet to pricehyphenated domain names with any reasonable accuracy,” notes Tajirian.

About DomainMart

DomainMart is a leader in providing domain-name secondary-market services,including appraisal/valuation, auction, escrow and ownership transfer, leasing,parking, management, and protection since 1996.

Contact:
Tom Saito, Marketing Specialist
DomainMart Inc.
Tel: +1 (415) 905-4234
TomSaito@DomainMart.com
www.DomainMart.com

Related posts brought to you by Yet Another Related Posts Plugin.