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what is the price of domains?

What Price, This Name? A Short Essay on the Science of Domain Valuation

How much is this domain name actually worth? That's the question most commonly asked in the field of domain sales. So here at Tangy.com we've made this 'The Question'. We focus on answering "what price?" because the majority of domain name resellers are setting prices way above what the market will currently pay. A large part of these resellers' unrealistic pricing policy is the result of them just guessing at a price. As we will see, this approach is understandable given the lack of precise indicators used in domain valuation (the traditional 'fix' has been to put your name to a date timed auction, with all the buyer/seller headaches that such auctions involve). Since Tangy.com specialises in competitively priced quality domain names, we have made it our priority to systematise domain values; what we like to call our 'science' of domain name values.

 

All the names offered for sale on Tangy.com have been subjected to our valuation model, and aren't listed above this price. To be able to feasibly do this we use a combination of sophisticated proprietary software that has codified the science of domain name pricing, giving us a price range that we adjust afterwards using our experience and judgment; what we call our 'name craft'. Producing this valuation model has been no mean task (and its full details are commercially confidential). However we will let you in on the 'broad strokes'. We do this because domain valuation has remained an occult area for too long, one of the major issues preventing the domain reseller market from maturing as an industry. tangy fruit
  The basic fact is that, as with any market, domain name values are determined by shortage. The four main elements of this shortage have been well established by the domain reseller community: Dot Com, character length, generic term, and industry size (see for instance the valuation model used at greatdomains.com). Under this four part domain name valuation model it can clearly be seen that a name of the quality of say, cars.com is very valuable indeed. This is because of the extreme rarity of such short, commercial industry specific, generic, Dot Coms. However, the bulk of domain names that change hands by resale are nowhere near this quality, and cannot be classified neatly by this four part criteria, yet also happen to be scarce and thus in demand.
 

Almost all previous publicly accessible discussions on domain pricing have added little to this Short+Generic+IndustrySize+DotCom formula. This lack of analytical tools is surprising considering the significant revenues generated for 'medium quality' domain name re-sales. This reflects the extreme newness and uncertainty surrounding the domain name industry.

 

 
  Attention to the details of any domain's value attributes will be necessary to construct a more broadly useful valuation model---->