4C Valuation Model
4C Valuation Model represents a system of domain appraisal based on four key criteria, or the four C’s: Character, Commerce, .Com and Comparables, otherwise known as Comps.
While each of these valuation criteria is important, all four together more accurately determine the fair market value of a Domain Name.
To complete the Appraisal, we then compare this value against similar subject Domain Names that have previously closed called Comparables (or Comps), to determine the final value.
Here are the 4C’s:
The shorter a Domain Name is, the better. Apart from being easier to remember and spell, a short name has more impact and a high recall value. Five characters or less is ideal, and anything more than 20 characters has a substantially lower value.
Ultimately, a Domain Name attains its value from its potential to drive traffic and deliver revenue to a business – in short, its marketability. Since branding is key to establishing a strong online presence, Domain Names that are based on well-known phrases, or are closely associated with a business opportunity with a sizable market share, enjoy a favorable position.
Location is everything, and many want to live in such coveted neighborhoods or cities as Beverly Hills, New York City, Paris, Singapore, or Hong Kong. That’s equally true of premium cyberspace. On the Internet, everyone prefers to dwell in the .com neighborhood. It’s the top-level domain (TLD) that embodies instant branding, and .com names enjoy a premium rating. (*** .com domain registration is the key)
Take a look for the domain sold history and utilize these as the Comps for determining the value of a similar subject Domain Name. By doing so, we ensure that our Appraisal reflects current fair market value.
Domain Appraisals are based on Commercial Use, Brand Recognition, Name Length, Dot Value, Hyphen/Numeric and Word Count. Step up to a Certified appraisal and you’ll also receive a review by industry experts.
Leave a Reply
You must be logged in to post a comment.