Domain Name Valuation: Internet Traffic Monetization and IT Portfolio Bundling

Abstract

Web domain names represent the gateway to Internet connections and access to specific websites. Their value depends on several parameters, as Web traffic or search engines, and is typically calculated with “quick and dirt” algorithms freely available on the Web. The value of a web domain depends on its capacity to attract traffic, i.e. visitors, and to transform them into cash-generating customers.

All domain names are unique and so there is no standard valuation method, especially if they are appraised within an IT bundle of related intangibles. Tentative comparable transactions represent anyway a benchmark for valuation, considering even the hypothesis of licensing the domain name to get a fair royalty.

Domain name appraisal is also a prerequisite for forensic estimates of damages in disputes.

A more detailed appraisal should consider not only the stand-alone value of a domain name, but rather its synergies with collateral intangibles as websites, digital brands, or M-Apps.

Keywords: SEO, algorithm, e-commerce, digital marketing, e-commerce, domain brandability, M-App, social network, dispute resolution