Domain Appraisals For Accounting.. Any Insights?

GUA

Gremlin
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Interesting one here.

I have been discussing my business dealings with my accountant, and sparing the complex details, he suggested that it would be worthwhile getting appraisals for my current portfolio of domains.

Whilst of course domain valuations are speculative I need to be able to assign a valuation to a domain that is considered fair and reasonable, and can be justified.

I am looking for a domain industry company who can provide appraisals for my portfolio. Does anyone have any suggestions?

- My first thought was SEDO. I contact them and they said they'd charge 10 euros per name if I was a parking customer, or 20 euros per name if I was not. I found it somewhat bemusing that they want to charge me more because I am NOT a customer as opposed to getting a new customer. My response stating this remains unanswered.

- I also contact Afternic and their representative told me that they do not offer portfolio appraisals (even though their website clearly states that they do - https://www.afternic.com/domain-name-appraisal). I followed up and am awaiting a response. It is still a little concerning that they do not know what services they themselves offer :)

Does anyone have any other suggestions?

Thanks
Thomas
 

Cartoonz

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The problem with appraisals is many...
Unless the appraiser is willing to actually offer you the value they claim in exchange for the domain, that appraisal is worthless. Actual Liquid value on some names can sometimes be reasonably established, but on most not. Retail value is a complete speculation as well.

For accounting purposes, the only true numbers are the acquisition cost and the carrying cost of the domain. Any subsequent gain through an actual sale is computed that way.

Basically, having somebody write a paper claiming "your portfolio is worth $xxxxxxx..." isn't worth the paper its written on unless someone is actually willing to pay you that amount at the time of the statement.

That said, you're not a newcomer to this space. You have an idea of the true Liquid Value of what you have. If you really need to figure out what the worth of your portfolio is, you're the best one to do that. But keep in mind that Liquid Value is low reseller, not end user. Anybody that appraises a name at Retail is completely guessing, until that perfect end user comes along - there is no Retail.
 
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