December 5, 2017
Godaddy, one of the biggest registrars worldwide, recently made its domain name appraisal tool accessible for free here.
This tool uses a proprietary algorithm based inter alia on transactions data from the past 20 years on the domain names second market (ie: amicable purchase of domain names).
Several free online tools propose perform automatic appraisals of domain names. To say the least, automatic appraisal provides varying results from one tool to another.
Here are the results of our tests on 3 free online tools, performed on several domain names:
These tools use various data: SEO scores, comparable transactions, sales offers for comparable domain names, domain name characteristics, traffic, website… It goes without saying that the number of parameters and their interpretation vary between the available tools. This explains the (huge) discrepancies between the above appraisals.
The automatic domain name appraisal proposed by the above tools must be considered with a certain amount of skepticism. Indeed, the appraisal of a domain name must be based on several parameters, whose relevancy will notably depend on the potential buyers profiles. In France, under certain conditions a domain name can be considered as an intangible asset of a company As it was recognized by the French Conseil d’Etat.
IP Twins remains at your disposal to assist you in transactions regarding Domain Name acquisitions.