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What is a Internet domain name really worth?

First, let us remember that value does not depend of what is valuated, but of the opinions of the owner(s) on the one hand side and the people who do are interested in acquiring it. In fact, nothing is worth anything if nobody is interested in it. Period.

Some people prefer small cars, some people only want big ones. Some people want to live nearby their parents, children, work, etc. while other people prefer a location based upon other preferences: Out of the country, beachfront, near the workplace, etc. Some women like tall sportsmen, while others prefer slim and smart guys. Some men prefer blondes, and others like redheads or brunettes. Some people prefer opera classics while others want rock-n-roll.

Preferences vary in place, time, subject, activity, mobility, and other somehow predictable or unpredictable factors. That makes any whatever decision subjective to theavailable information, and what part of it is used to base the decision upon, and furthermore the way things are interpreted.

People with somehow similar ideas often seek each others company, to exchange information and to improve their knowledge/skills in the field of their common interest, or to just feel better.

As a proverb says: Like attracts like. Groups often agree upon certain values, and often try to promote their ideas either for free as a hobby, sport, religion, belief, etc. or find a way to commercialize their activity. Thus creating a local business or a whole industry.

Anyway, it is a matter of Belief in the validity of a doctrine. The believer agree that their common viewpoint is reasonable or absolute truth. It is clear that all things in the Universe can be seen by every being in another perspective. Knowing this, it is easy to understand that there are groups that agree about certain viewpoints, while some other groups reject viewpoints.

Competition can be friendly or fervent. Leaving religious and moral doctrines aside, let us focus on business. And particularly on Internet domain name valuation. Domain name appraising issort of a spin-off industry from the second-hand domain name market: The Domain Name After Market or just the domain aftermarket.

Here, the appraising industry takes into consideration a number of objective domain-related factors such as the number of characters in the Second Leveld DOMAIN (SLD) and the Top Level Domain (Extension) that also can be a Country Code (CC).

An other factor is the meaning of the SLD: The domain name language and what it means. Is it a word? Generic or not? Singular or plural? Is it a sentence? Etc. etc. These are subjective factors. While the name itself remains the same whatever happens, the relationship of the word with the meaning (origin, source, item, address, business, brand, etc.) can change more than once.

Also, selling and buying motivation plays an important role. It is acceptable to believe that the effective selling price vary depending of elements such as a forced sale or acquisition. End uses often have other motivation and budget than resellers. While valuation arguments can seem just as valid for some resellers and for some end uses, it is not a rule.

Eventually, a domain is worth what the seller let it go for and what the buyer pays to get it. What other people want to pay for does not matter, once the deal is closed and the domain is gone until offered for sale again. Simple.

Whatever third party opinions based upon whatever argumentation, a deal depends upon the motivation of seller and buyer. And it is very likely that both the seller and the buyer will not make available all motivation details. Not to each other, not to outsiders and certainly not to appraisers.

It can be safely concluded that domain appraising is a unscientific approach for decision-making in domain selling and buying. Appraisers use all sorts of mathematical and wet finger models to compare domain elements insystems they pretend to be objective. However, since only the SLD and TLD are permanent and all other elements are variables, any and all conclusions about a domain are Instantaneous (valid only right now) and Local (by this appraiser).

If You really want something, negotiate but pay what it takes before somebody else gets it.You may want extra third party information, but what is good advice? Appraisers sell appraisals. They always win. Underpricing and Overpricing only exist between the ears of jealous people and manipulators. A price is what it takes to get something. No more, no less. The basics of demand and supply.

So, then, away with the appraising industry?  Not necessarily. Advice needs not to be accepted as obligatory, but can be a basis for negotiation. Especially if an appraiser forwards halfway the asking price and the budget of the candidate buyer.