Our Appraisal Model
Overview
An ideal model should provide a maximum possible combination
of the following:
- large number of variables
to provide for a more nuanced valuation.
- exclusivity so that
variables have significance on their own and are not
merely reflections of another/other variable/s.
- objectivity so
that the value will not vary with the person doing
the valuation.
- correct weights for
the variables developed from induction of empirical
data certain factors are simply more important than
others.
- valuation that is
linked to normal supply and demand forces of a market.
An outline of one such model is shown below:
I. Word-Based Value
- Number of Characters
- Number of Words
- Not easily misspelled
- Easily remembered intuitive
word or phrase
- Easily verbalized
- Language
- TLD
- Variation
II. Meaning-Based Value
A. Commercial Value
- Profitability of Industry
- Generic?
- Obvious name for industry?
B. Pleasantness. Evokes positive feelings. Impact.
III. Supply and Demand-Based Value
The first three criteria (number of variables, exclusivity,
and objectivity) have been covered quite well in our
model. There are more variables than most other models.
In general, each of the variables is exclusive from
all others. And finally, most of the variables are at
least functionally objective, if not truly objective
even if they require some human determination (how
easily something is verbalized is very difficult for
a computer to calculate, even still, people will rarely
disagree on such a determination).
Each of the criteria is bound to be missing from some
variables -- the number of characters, for example,
is certainly going to have a strong correlation with
the number of words constituting a lack in exclusivity.
In this case, though, the correlation of the variables
is not a deterrent, due to the intuitive qualitative
difference between the number of characters and the
number of words (www.bob.com, for example, is valuable
more for its very short length than it is for its being
one word). The number of characters and number of words
are also each uniquely valuable because there exists
a significant amount of cases where the correlation
is not evident (www.Onomatopoeia .com is one word, yet
many letters).
Some variables will also inevitably not be objective.
Valuation of domain names will never be a pure science.
Since what the models try to capture is what value a
subjective audience (internet users) will place on a
name, it will have to incorporate subjective elements.
Variables such as how pleasant sounding a name is
have too much importance to be discarded due to their
subjectivity. This issue comes up mostly in brand names,
where their value is not determined by the industry,
since the industry is usually not hinted to in the name
(What in the world does Amazon have to do with books?).
Of course, like all other successful subjective estimation
models, ours will be leveraged with strong research-based
expert knowledge to guarantee our customers the absolute
best possible valuation in the world.
With regards to the 4 th criterion having
tried and tested weights for the variables since the
domain name financial industry is in its infancy, evaluated
empirical data is scarce. As you are reading this, GoldNames
is busy amassing the largest, most complete, robust,
powerful, and dynamic domain name database on the planet.
GoldNames will spend as much of its resources as is
necessary in order to define these variable weights
to a degree of accuracy that will be unparalleled in
the industry.
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