Markmonitor and domain name acquisitions.
A white paper by Markmonitor reveals the recommended corporate approach to domain name acquisition.
Titled, “Assessing the Value of a Domain,” this white paper attempts to define the necessary steps, in order to acquire domains necessary to one’s brand strategy.
“Have you ever wanted to register a domain only to find that it is already registered by a third party? Often, the only option is to attempt to purchase the domain, but determining the necessary budget and likelihood that the owner will be willing to sell can be a challenge. Domains are intangible and little else compares.”
Markmonitor then lists that researching the domain owner is the first step towards domain acquisition, and who they are defines the overall pricing:
“Owner profiles vary depending on organization size and motive. For instance, many large-scale and well-known domain speculators are unwilling to sell below certain thresholds, which are often higher than the reasonable market value, while others have prices that are aligned at, or below, market. Sellers have varying temperaments and approaches on how they respond to inquiries and offers.”
There lies the biggest advantage domain investors have against corporations: they get to define the asking price, and as a domain name is an asset that can only be sold once, it makes sense to maximize one’s return on investment (ROI.) By treating every inbound inquiry as an end-user acquisition, domain investors hold the key to negotiating their assets.
The white paper by Markmonitor leverages the importance of generic terms in domains:
“Commercial application and brand awareness are also important factors that are to be considered. Domains that contain one or two generic words are more valuable than a combination of letters.”
Traffic, search volume, search results, and age are all parameters that must be taken into account, according to the Markmonitor white paper:
“When the purchase of a domain from a third-party is required, assessing the value of the domain prior to contacting the owner is the key to a successful purchase. Understanding criteria such as seller profile, domain history and traffic and search volume statistics can help determine budget and set realistic expectations.”
Overall, a nicely written document on domain name valuation for the corporate world, which can be perused below.
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Should send this report as a pdf attachment in reply to all the people who make lowball offers.
Domains – Great idea! 😀