Valuation Metrics: The Anatomy of a Domain Appraisal

Search Popularity

The frequency of searches for a given search term is one of the most important indicators of the marketability and desirability of that search term. EstiBot checks search popularity using the keywords that make up the submitted domain name. Unlike other appraisal systems, which often only look at the exact search term, the EstiBot keyword popularity routine uses a kind of fuzzy logic to determine whether the search popularity result is indeed relevant for the given domain name or not. The routine will also give higher points to a good, brandable domain name that includes a popular and marketable search term, even if the whole keyword string of the domain name has no search popularity. If the domain consists entirely of popular keywords, in a natural linguistic order, the domain will get extra marks.

Previous sales

The heart of the EstiBot appraisal system is the database of known domain sale prices. Most of these were extracted from the invaluable NameBio.com database. But where other appraisal systems use a simple comparison to past sales figures of similar domain names, and then place the appraisal in that general neighborhood, EstiBot does this in a completely different way. EstiBot considers similar past sales, and incorporates that knowledge into the general analysis along with the other factors mentioned here, and assigns each domain name a unique score based on a cross-analysis of the previous sales database and the keyword valuation.

Keyword Frequency

The frequency of a given search term on the Internet, i.e. the total number of occurrences of the term on the Web, is one indicator of the brandability and memorability of the domain name. Common phrases and words appear frequently on web pages, indicating their potential for commercial branding. Frequency is also used as a factor in some of the many error-reduction routines that EstiBot features.

Title Popularity

Most web sites include their most precious keywords in the browser title. This is done mainly for two reasons: Search Engine Optimization (SEO) and Pay-Per-Click advertising (PPC) optimization. The frequency of a search term in the titles of websites is one of the indicators that EstiBot uses in determining the commercial potential and keyword desirability of a domain name.

Anchor Text Popularity

The text contained within a hyperlink from one web page to another is called the Anchor Text. This is a very important detail for webmasters doing SEO, because the search engines put a lot of weight on the anchor text in determining what their website is about. EstiBot use Anchor Text keyword popularity as one factor in determining the desirability and search engine optimization value of a domain name.

Backlinks


Backlinks to a domain name indicate that the domain is being used for an existing website. This increases domain value. Also, old domains often have backlinks and are more valuable than newly registered domains. EstiBot includes the number of backlinks as one factor in the appraisal.

Domain Name Length and Number of Keywords

It is a common misconception that domain name length and the number of keywords per se play any significant role in determining the value of a domain name. During the development of EstiBot, this conception was statistically proven wrong, and therefore EstiBot figures these variables into the equation only after determining whether or not they are pertinent to the analysis of a given individual domain name. EstiBot knows that 1, 2 and 3-character domains are inherently valuable due to their limited availability, and therefore such domain names are given points for their short length. This is of course top-level domain (TLD) dependent, and EstiBot takes this into account, too. At the other end of the spectrum, extremely long domain names may receive an EstiBot penalty regardless of their keyword strength, but not categorically.

Traffic


EstiBot uses various metrics to indirectly estimate the traffic of a domain. Traffic is one of the most important factors in domain valuation. Also, for typo domains, the traffic of the "real" site is considered. The Alexa ranking is also determined and printed out to help you in your research.

Domain availability


EstiBot checks whether the domain name is available in various extensions. If the domain is available for registration, by definition its value is Reg Fee, but Estibot will try to determine whether it might have some potential value and therefore may valuate even available names at higher than Reg Fee. EstiBot also considers the general availability in other TLD's as part of the "desirability" factor.

Digits

Most domain appraisal systems automatically detract a certain predetermined percentage of domain name value according to the number of unwanted characters in that domain name. EstiBot determines whether the digits constitute a natural, marketable addition to the domain name or not, and for each given domain name, EstiBot gives a unique, tailored penalty for numeric digits, or no penalty at all.

Hyphens

The presence of hyphens in a domain name will reduce its value. EstiBot will give hyphen penalty especially to those domains in which the hyphen is unjustified, in other words, when the search popularity and other factors do not justify the usage of a hyphen. For very popular search terms, hyphen may be justified, especially if the domain name consists entirely of the exact key term, and in this case the hyphen will not necessarily detract from the value to any great extent, although the unhyphenated domain will always be the more valuable one.

Top-Level Domain (TLD)

EstiBot has a unique way of scoring top level domains and country-code top level domains (ccTLD). This scoring system is constantly updated according to market trends.