Watch the video: http://domainsherpa.com/best-way-to-determine-a-domain-name-value/ I asked Adam Dicker, CEO of DNForum.com and DNFCollege.com, about the best way to value a domain name. Here's what he said in the interview.

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Interview with Adam Dicker, DNFCollege.com
Watch the full video at:
http://www.domainsherpa.com/best-way-to-determine-a-domain-name-value
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Here's your program.
Michael: Alright Adam for those that don't have the 15 plus years – 20 plus
years – I'm not sure exactly how many years of internet experience that you
have what is a good bench mark for them to determine the value of a domain
name? What is a good tactic for them to use? Should they go to an online
evaluation tool? Should they pay for online valuation or online appraisals?
Should they send you an email? What is the best way for them to determine
the value of a domain that they own?
Adam: To be honest with you at the beginning, and I did this myself, I was
lucky enough to find somebody that I could trust that I would run by things
that I was thinking of purchasing or things that I was thinking of selling and
say am I getting a good deal? And that is the best benchmark you can get.
Find somebody you can trust, whether it be me or somebody else and use
them as a benchmark. My advice on appraisal tools and all the guys that write
them won't like this but it is don't ever pay for an appraisal. And why is
because they are useless. Remember what I said earlier the buyer dictates the
price. You little piece of paper saying it is worth trillions of dollars won't get
you any more revenue for your domain.
Appraisals are just a way for you to get an ego boost and a waste of money at
the same time. There are also known scams of people asking you to get
appraisals before they buy your domain name. Then you get the appraisal
from the lowest company that they send you and that is where it ends. They
never buy the domain name so please don't fall for that either.
Michael: But what if you go to one of the more reputable services like
SEDO.com is the largest marketplace in the world. They offer an appraisal
for I don't even know what it is. Let's say it's $30 or $40. I'm not sure, on that
order of magnitude I'm sure. If you got an appraisal for $10,000 doesn't that
give you more ammunition when somebody comes to you and offers $5,000
or $1,000 for it? You could say hey SEDO the largest marketplace in the
world said it was worth $10,000?

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Adam: Not really because if the buyer is not going to give you any more
money for it, it is completely useless. Plus in most cases the people doing
these appraisals are running algorithms. They put in your domain name and
out comes a price. So you are not really getting any value. They don't know
how many competitors there are for that domain name for that keyword. Like
if you are selling insulation. You have 10 companies that are famous for
selling insulation so Insulation.com may have more value and it may come
out on an appraisal. But at the end of the day an appraisal is like a jewelry
appraisal. A jewelry appraisal is only good if it is stolen and you want to
replace it. You domain name hopefully won't get stolen. And a domain
appraisal has no value what so ever.
Michael: What about DNForum.com? Your discussion forum. Do you have
a special area of your board that is just dedicated to getting appraisal input
from other domain investors and those on your discussion forum?
Adam: Yes DN Forum serves as a gut check to keep you realistic on your
prices. But I always tell people buy from domainers but don't sell to
domainers. And remember if somebody asks you to do it for a price or they
send you an email about a domain name and ask for stats on a domain name
don't sell it because they are a domainer. Only domainers ask for stats on
domain names. And you want to sell to end users. You don't want to sell to
domainers.
Watch the full video at:
http://www.domainsherpa.com/best-way-to-determine-a-domain-name-value