The credit crunch that is still in progress around the world has left an unwelcome mark on industries everywhere. Although it may seem that the IT sector is doing okay during the crisis, we have to adjust our strategy to sync up with the current economic situation. With domain name appraisals that means taking more factors into the methodology.
Figuring out the fair market value now requires more knowledge about the domain name market. This is a great example why automated domain name appraisals can often relust in giving an over optimistic and unrealistic value.
With the bad situation happening in the financial and banking industries it has also affected many internet companies, however not all is bad. Some sectors can see signs of an increase in business. There are several internet companies reporting an increase in internet sales, one reason is many people are looking to cut cost. Internet stores can often times offer cheaper prices due to the lower fixed cost of doing business online.
When appraising a domain name it is necessary to know if the domain has any development potential. It is time to forget about only re-sale value. The time is gone when domains where sold many times between buyers before reaching its maximum value. People are rethinking from re-sale value to development value.
In the not to distant past any 3 letter domain name was being sold at a high price. If you were able to buy a domain at a good price you could almost always find a buyer who would pay a premium for the domain. A problem with 3 letter domains is they rarely have development potential other than certain companies who can use them as an acronym.
Domain valuation companies have noticed a new influx of people coming into the domain market during this credit crunch. This has caused an increase of buyers in the market as more people are wanting to make money online. This group of new buyers has helped to support the domain prices from falling further than they already have.
When looking at recent domain sales data you can see that the average sale of domain prices have fallen and the total number of domain sales have also fallen. This should be expected during and economic down turn but experts seem to think this will not last long. When the economy begins to turn around we will see domain prices and sales numbers also increase.
Providing customers with an accurate domain name appraisal during a economic melt down can be a challenge. But remember this is also an opportunity for new people to come in and buy domains now that they are at a discount. You should be encouraged to enter the market if you have the knowledge to make wise choices as the domain industry will continue to grow.
Figuring out the fair market value now requires more knowledge about the domain name market. This is a great example why automated domain name appraisals can often relust in giving an over optimistic and unrealistic value.
With the bad situation happening in the financial and banking industries it has also affected many internet companies, however not all is bad. Some sectors can see signs of an increase in business. There are several internet companies reporting an increase in internet sales, one reason is many people are looking to cut cost. Internet stores can often times offer cheaper prices due to the lower fixed cost of doing business online.
When appraising a domain name it is necessary to know if the domain has any development potential. It is time to forget about only re-sale value. The time is gone when domains where sold many times between buyers before reaching its maximum value. People are rethinking from re-sale value to development value.
In the not to distant past any 3 letter domain name was being sold at a high price. If you were able to buy a domain at a good price you could almost always find a buyer who would pay a premium for the domain. A problem with 3 letter domains is they rarely have development potential other than certain companies who can use them as an acronym.
Domain valuation companies have noticed a new influx of people coming into the domain market during this credit crunch. This has caused an increase of buyers in the market as more people are wanting to make money online. This group of new buyers has helped to support the domain prices from falling further than they already have.
When looking at recent domain sales data you can see that the average sale of domain prices have fallen and the total number of domain sales have also fallen. This should be expected during and economic down turn but experts seem to think this will not last long. When the economy begins to turn around we will see domain prices and sales numbers also increase.
Providing customers with an accurate domain name appraisal during a economic melt down can be a challenge. But remember this is also an opportunity for new people to come in and buy domains now that they are at a discount. You should be encouraged to enter the market if you have the knowledge to make wise choices as the domain industry will continue to grow.
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