Valuation & Demand Characteristics

Based Upon Highest and Best Use

Grade

Tesla Demo

ICE

Demo

TP

Demo

A Name that Matches a Highly Successful and Rapidly Growing Business

A business recognized as an industry leader will seek a domain that aligns seamlessly with its brand, trademark, or company name. Domains that cater to consumer-focused businesses often hold significantly greater value.  – IE: Tesla.com, Rocket.com

AAA
$ 7 or 8 Digits+

X

A Name that Matches a Large Successful Business or Product but Not Explosive Growth and Great Prospects like Tesla or Rocket

A reputable and distinguished business, mature or limited growth expectations, seeking a domain that aligns with its brand or company name.

 – IE: ICE.com $3.5 million Purchase

AA

$ Mid 7 Digits+

X

A Name That Matches a New Business with Great Potential or a Mature Company with Modest Potential

A Start-Up or young operating business seeking a domain that perfectly matches its brand, product, or company name. For an existing company the value of a Domain is directly related to profit and growth expectations. 

As demonstrated by the Tesla.com Seller who held onto the domain for 11 years. A new potentially fast growing A-rated company has the potential to evolve into a highly valuable AAA enterprise.  

- IE:  Two Examples, DFIN.com (unsold) or a small European public company, TP.com that sold for $1.2 million

A

$ 7 Digits+

X

A Good Name or Product Name, ie: Cars.com; like an A Grade but No Business in Place

Good short, single word from dictionary or descriptive phrase – common use – brandable easy to read and spell, easy to remember, price varies with industry profitability potential – good, memorable, and easy-to-spell common phrases are acceptable.  IE: UsedCarSales.com

BBB

$ Mid 6 Digits+

A Good but Low Profit Product or Service Name

New Business Match Product, Less Profitable Industry, Low Profit Margins, Start Up with Unknown Growth Potential and Industry Profitability - Brandable – More Valuable as Part of a Domain Farm

Single Word, IE: Bagel.com

BB
$ Low 6 Digits+

Short Not in Dictionary but Brandable

OK to Read, Remember & Spell   IE: vimbux.com

B

A Domain Name, not good or bad, but may only meet a small niche

A large group of these relatable names (Domain Farm) could Price as a BBB Grade similar to Goat Foods

C

Short Or Long – May be Confusing or Cumbersome

May be hard to work with - Not Much to Get Excited About 

NR

$1+

·        The volume of Domains in each Grade increases from AAA to NR

·        Tesla.com sold for $11 million but only had value to Musk because Tesla owns the Trademark

·        A Domain that includes a Trademark is of little value except for a Trademark Owner

·        Domains as part of a Domain Farm or other enhancements such as a Trademark enhances the value

·        The Grades will be fine-tuned over time

·        The pricing ideas will change over time