Contributing factors to the value of a domain name

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Paul | Domain-Parking

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Aug 3, 2008, 8:51:09 AM8/3/08
to au Domain Name Valuation
I've put together a list of factors that I think contribute to the
value of a domain name:

* the genericness of the name
* any existing website capital - is the domain name an established
online business?
* any existing links to the site and their quality
* search engine penetration
* brand association (this could be a negative because of the legal
implications)
* availability of similar alternative names

I propose that we adopt a scale from 1-5 (perhaps rated in stars?) as
a quick reference for easily identifying the perceived objective value
of a domain name. If that's agreed, we can then work on the financial
value within the scale. As an example:

0 stars $0-$50 (equivalent to unregistered domain)
1 star $50-$200
2 stars $200-$1,000
3 stars $1,000-$10,000
4 stars $10,000-$100,000
5 stars $100,000+
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