DomainMart Introduces Domain Name Liquidation-Value Service
ByDomainMart (domainmart.com), a provider of quantitative and analytical domain-name services, introduced today a service to estimate a domain name’s liquidation value.
The report points out three important concepts of value: intrinsic, market, and liquidation. In a well functioning market, the intrinsic value and market value converge.
There are two major distinctions between a fair market value and a liquidation value, according to the report. Liquidation creates a situation where the sale must occur within a specific, short period of time and when there are no motivated buyers for the domain name at the fair market price. Thus, the seller needs to offer a reasonable discount to attract buyers. The liquidation value is an estimate of such a discount price.
According to DomainMart’s report, current domain name appraisal models have been developed to estimate the fair market value. The lack of a liquidation-based model is due to the current demand for appraisals being driven primarily by motivated buyers and sellers, and by the nonexistence of a robust scientific approach to estimate a domain name’s liquidation value.
Article Link:
Click here