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The credit crunch that is causing economic problems around the world has caused an unwelcome mark to industries. It does seem like the internet sector is doing well during the crisis, but we will have to adjust our thinking to factor in the economy. When doing a domain name appraisal that means considering more factors into the methodology.
Figuring out the fair market value now requires more knowledge about the domain name market. This is a great example why automated domain name appraisals can often relust in giving an over optimistic and unrealistic value.
With the terrible situation in the financial and banking sectors it has also hurt many of the internet projects, although it is not all bad. Other sectors are showing signs for an increase in potential use. Some internet stores have reported increases in online sales - this could be happening as many people are looking to cut cost. Online stores can offer lower prices because of lower fixed costs compared to physical stores.
When evaluating a domain name it is necessary to know if the domain has any commercial potential. Forget about only the re-sale value of the name. Long gone are the days when a domain sold back and forth until it reached its maximum value. People will have to change their thinking from re-sale potential to development potential.
A few years ago, any 3 letter domain name was considered to be very valuable. If you bought one at the right price you could always find a buyer willing to pay a premium for the domain. One problem is 3 letter domains rarely have any development potential other than being an acronym for a company.
Domain appraisal companies have been seeing new people coming into the secondary domain market during this time of economic crisis. This has actually caused a small expansion in the industry as more people are looking for ways to invest and make money on the internet. These new people have helped support the domain prices from falling further.
When looking at recent domain sales data you can see that the average sale of domain prices have fallen and the total number of domain sales have also fallen. This should be expected during and economic down turn but experts seem to think this will not last long. When the economy begins to turn around we will see domain prices and sales numbers also increase.
Giving an accurate domain appraisal during a financial melt down is a challenge that requires much more attention and knowledge from the appraiser. This time can be seen as a great opportunity to new buyers as the prices are now at a discount. You should not be discouraged from entering the domain market if you have some knowledge about the domain industry as it will continue to grow.
Figuring out the fair market value now requires more knowledge about the domain name market. This is a great example why automated domain name appraisals can often relust in giving an over optimistic and unrealistic value.
With the terrible situation in the financial and banking sectors it has also hurt many of the internet projects, although it is not all bad. Other sectors are showing signs for an increase in potential use. Some internet stores have reported increases in online sales - this could be happening as many people are looking to cut cost. Online stores can offer lower prices because of lower fixed costs compared to physical stores.
When evaluating a domain name it is necessary to know if the domain has any commercial potential. Forget about only the re-sale value of the name. Long gone are the days when a domain sold back and forth until it reached its maximum value. People will have to change their thinking from re-sale potential to development potential.
A few years ago, any 3 letter domain name was considered to be very valuable. If you bought one at the right price you could always find a buyer willing to pay a premium for the domain. One problem is 3 letter domains rarely have any development potential other than being an acronym for a company.
Domain appraisal companies have been seeing new people coming into the secondary domain market during this time of economic crisis. This has actually caused a small expansion in the industry as more people are looking for ways to invest and make money on the internet. These new people have helped support the domain prices from falling further.
When looking at recent domain sales data you can see that the average sale of domain prices have fallen and the total number of domain sales have also fallen. This should be expected during and economic down turn but experts seem to think this will not last long. When the economy begins to turn around we will see domain prices and sales numbers also increase.
Giving an accurate domain appraisal during a financial melt down is a challenge that requires much more attention and knowledge from the appraiser. This time can be seen as a great opportunity to new buyers as the prices are now at a discount. You should not be discouraged from entering the domain market if you have some knowledge about the domain industry as it will continue to grow.
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