Monday, July 31, 2006

What is a Domain Name Worth?

Recently I have had some offers from individuals and competitors to purchase the domain BusinessJet.com and the associated business. But, what is a domain worth? Should the value include the "potential" for the site? Should the value only reflect the present value of future cash flows from the site?

It's a little bit like having some vacant real estate in Manhattan. Is it worth more if someone builds a skyscraper on it than if they build a parking garage? Or is it worth the same amount?

Any ideas, comments, or suggestions would be greatly appreciated.

1 Comments:

Anonymous said...

appraisals are based on four key criteria (Character, Commerce, .Com and Comparables).

The analysis begins with the assignment of a value to each of the criteria, which produces a preliminary rating and estimated value. The values are constantly updated and cover all of the current domain names including the seven new generic top-level domains in addition to .com, .net, and .org and the more than two hundred country code top-level domains.

July 31, 2006 4:36 PM  

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