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 dirty” 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. Comparable transactions represent a benchmark for valuation, considering even the hypothesis of licensing the domain name to get a reasonable royalty. 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. Considerations about domain names can be easily extended to websites that represent the contents of the domain. Valuation of domain names and websites, in many cases, tends to coincide.
- Digital marketing
- Social network
- Dispute resolution
- Internet traffic
- Web analytics
- Pay per click
- Web ranking
- Cost per click
- World Wide Web (WWW)
- Virtual shop window
- Website monetization
- IP protocol/address
This is a preview of subscription content, access via your institution.
Tax calculation will be finalised at checkout
Purchases are for personal use onlyLearn about institutional subscriptions
Alberti, A. M., Casaroli, M. A. F., Sighi, D., & Da Rosa, Righi R. (2017). Naming and name resolution in the future internet: Introducing the NovaGenesis approach. Future Generation Computer Systems, 67, 163–179.
Andriessen, D. (2004). Intellectual capital valuation and measurement: Classifying the state of the art. Journal of Intellectual Capital, 5(2), 230–242.
Anson, W., & Suchy, D. (2005). Fundamentals of intellectual property valuation: A primer for identifying and determining value. Chicago: American Bar Association.
Arora, S., Kalro, A. D., & Sharma, D. (2015). A comprehensive framework of brand name classification. Journal of Brand Management, 22(2), 79–116.
Ballester, M., Garcia-Ayuso, M., & Livnat, J. (2003). The economic value of the R&D intangible asset. European Accounting Review, 12(4), 605–633.
Beel, J., Gipp, B., & Wilde, E. (2010). Academic search engine optimization (ASEO): Optimizing scholarly literature for Google Scholar & Co. Journal of Scholarly Publishing. Available at www.sciplore.org/publications/2010-ASEO–preprint.pdf.
Boujelben, S., & Fedhila, H. (2011). The effects of intangible investments on future OCF. Journal of Intellectual Capital, 12(4), 480–494.
Brin, S., & Page, L. (1998). The anatomy of a large-scale hypertextual web search engine. Stanford. Available at http://Infolab.Stanford.Edu/Pub/Papers/Google.Pdf.
Cavallari, M., & Moro Visconti, R. (2016). A service-value approach to mobile application valuation. In T Borangiu, M Dragoicea, & H, Novoa (Eds.), Exploring services science presented at 17th International conference, IESS, Bucharest, Romania. Switzerland, Geneva: Springer International publishing.
Dieterle, S., & Bergmann, R. (2014). A hybrid Cbr-Ann Approach to the appraisal of internet domain names. Lecture Notes in Computer Science, 8765, 95–109.
Farris, P., Neil, W., Bendle, T., Pfeifer, P. E., & Reibstein, J. (2010). Marketing metrics: The definitive guide to measuring marketing performance. Upper Saddle river, NJ: Pearson Education.
Forrester, H. A. (2016). The evolution of domain names and their impacts on trademark rights, global governance of intellectual property in the 21st century (pp. 151–172). Available at https://link.springer.com/book/10.1007/978-3-319-31177-7.
Ghazinoory, S., Abdi, M., & Azadegan-mehr, M. (2011). SWOT methodology: A state-of-the-art review for the past, a framework for the future. Journal of Business Economics and Management, 12(1), 24.
Hackett, L. P. (2002). Valuing internet domain names: Considerations and market factors. Australian Property Journal, 37(4), 273–275.
Helms, M. M., & Nixon, J. (2010). Exploring SWOT analysis—Where are we now? A review of academic research from the last decade. Journal of Strategy and Management, 3(3), 215.
Ho, C. T. B, Liao, C. K., Kim, H. T. (2011). Valuing internet companies: A Dea-based multiple valuation approach. Journal of the Operational Research Society, 62, 2097–2106.
Iparraguirre, J. B. C. (2016). Evaluation and economic valorization of websites using the technical evaluation and economic valorization methodology. Available at http://Ieeexplore.Ieee.Org/Abstract/Document/7556061/Authors?Ctx=Authors.
Kadirov, D., Bardakci, A., & Jantar, M. (2017). The impact of linguistic proximity and diglossia on brand name and slogan extension tendencies in the Turkish Russian and Arabic contexts. Journal of Brand Management, 25.
Kemmis, A. (2018). The difference between direct and organic search traffic sources. SmartBug. Available at https://www.smartbugmedia.com/blog/what-is-the-difference-between-direct-and-organic-search-traffic-sources?utm_medium=social&utm_source=email.
Lagrost, C., Martin, D., Dubois, C., & Quazzotti, S. (2010). Intellectual property valuation: How to approach the selection of an appropriate valutation method. Journal of Intellectual Capital, 11(4), 481–503. https://doi.org/10.1108/14691931011085641.
Lindenthal, T. (2014). Valuable words: The price dynamics of internet domain names. Journal of the Association for Information Science and Technology, 65(5), 869–881.
Meystedt, A. (2015). What is my URL worth? Placing a value on premium domain names. Valuation strategies.
Moro Visconti, R. (2012). Exclusive patents and trademarks and subsequent uneasy transaction comparability: Some transfer pricing implications. Intertax, 40(3), 212–219.
Moro Visconti, R. (2013). Evaluating know-how for transfer price benchmarking. Journal of Finance and Accounting, 1(1), 27–38.
Mouritsen, J., Bukh, P. N., & Marr, B. (2004). Reporting on intellectual capital: Why, what and how? Measuring Business Excellence, 8(1), 46–54.
Oestreicher, A. (2011). Valuation issues in transfer pricing of intangibles: Comments on the scoping of an OECD project. Intertax, 39(3), 126–131.
Pokorna, J., & Vecerkova, E. (2013). Trade name and trademark versus domain. Acta Universitatics Agriculturae et Silviculturae Mendelianae Brunensis, 61, 1069–1076.
Rocha, A. (2012). Framework for a global quality evaluation of a website. Online Information Review, 36(3), 374.
Salinas, G., & Ambler, T. (2009). A taxonomy of brand valuation practice: Methodologies and purposes. Journal of Brand Management, 17(1), 39–61. https://doi.org/10.1057/bm.2009.14.
Sharma, M., & Prashar, E. (2013). A conceptual framework for relative valuation. The Journal of Private Equity, 16(3), 29.
Sherman, C. (2006). The state of search engine marketing. Search Engine Land.
Singh, J. P. (2013). On the intricacies of cash flow corporate valuation. Advances in Management, 6(3), 15–22.
Solum, L. B. (2013). Models of internet governance. Illinois Public Law Research Paper No. 07–25, University of Illinois, Law & Economics Research No LE08-027. Available at SSRN https://ssrn.com/abstract=1136825.
Spaulding, J., Upadhyaya, S., & Mohaisen, A. (2016). The landscape of domain name typosquatting: Techniques and countermeasures. In Proceedings, Presented at 11th International Conference on Availability, Reliability and Security (ARES 7784584) (pp. 284–289).
Sullivan, D. (2007). What is google pagerank? A guide for searchers & webmasters. Search Engine Land. Available at https://searchengineland.com/what-is-google-pagerank-a-guide-for-searchers-webmasters-11068.
Tang, J. H., Hsu, M. C., Hu, T. Y., & Huang, H. H. (2014). A general domain name appraisal model. Journal of Internet Technology, 15(3), 427–431.
Toscano, L. (2009). SEO strategy. Trento, Italy: Uni service.
WAA Standards Committee. (2008). Web analytics definitions. Washington, DC: Web Analytics Association.
Wittlake, E. (2016). How account-based advertising really works. B2B Digital Marketing. Available at http://b2bdigital.net/2016/04/20/how-account-based-advertising-really-works/.
Wu, Z. G., Zhu, G. H., Huang, R., & Xia, B. (2009). Domain name valuation model based on semantic theory and content analysis. In Proceedings Presented at Asia-Pacific Conference on Information Processing (APCIP 2,5197179) (pp. 237–240).
© 2020 The Author(s)
About this chapter
Cite this chapter
Moro Visconti, R. (2020). Domain Name and Website Valuation. In: The Valuation of Digital Intangibles. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-36918-7_11
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-36917-0
Online ISBN: 978-3-030-36918-7