The Factors I use in Evaluating a Domain Name

Good Morning from Istanbul.

I believe a domain name has a value that is in direct proportion to the population it serves and the spending power associated with those particular groups. That is why I have always believed in dotcom. It just serves the largest sector. The wealthiest sector. The most global.

So if you have .gr for Greece, that is the population and the economic center that you tap into. It’s your base. Expanding that base is the trick. Same with all country codes. So there is a formula that you can form that helps to show the value. China may have the largest populace, but may not have the biggest spending power. There are other factors. Some items are more popular in one geographic region but not another. The point is there are all just a few factors that go into a value of a domain. Then we get to what somebody could do with it. What their potential is. Again, the point is there are so many things to consider. Each with a value. Each with a mathematical number attached to it. Dozens and dozens of factors.

Now this is something that there is no analytics’ on. Few really understand how many different facets there are to weighing a domain. And even when some consider it, their timeline is not included which is perhaps the biggest facet. But to be honest, there are many competing facets. Too many for me to even mention. You don’t have all day to weigh each and every facet. You have to learn to do it rapidly.

So I look at crappy domains and folks, they are as worthless as anything on this planet. Does not mean you can’t make it the next Google. But the inherent value is nil. You add up all the facets and it adds to zero. It adds to minus zero since it is a liability not an asset. Maybe I am exaggerating. Maybe the domain you have gets a 7. But the problem is it is a 7 on the scale of 1 million. Valueless. Worthless.

This period is your last best chance to find gold at below market prices. The window of opportunity will be quite short. It started just last month and could be over by this fall. Puff. Here today, gone tomorrow. The aftermarket next year won’t be as good as this year for the simple reason that there will be less domains of quality up for sale. Many will change hands this year. It won’t repeat next year as those that buy are buying to keep as opposed to flipping. The pool of quality domain names will not be what they are today. The window of opportunity is open. Don't blow it this time!

Have a GREAT Day!
Rick Schwartz