financial valuation
Domain names
Domain names, like brands, are strategic intangible assets that ensure the positioning of your company in its market and strengthen its reputation and brand image.
Companies are now implementing real strategic management of their domain names. It is usually associated with brand management. This management entails costs related to these intangible assets deposit, renewal, monitoring, and defense.
Thus, like brands, the financial valuation of domain names deserves to be integrated into the management strategy of these assets.
To do this, Finantis Value analyzes different criteria :
— Portfolio strategy
Protection and defense of domain names
— The semantics of the domain name
Its meaning, its universal nature or not, its structure (in particular, ability to be memorized or understood without being spelled)
— The geographical scope
The geographical scope of the extension,
— Seniority
Seniority
— Ranking
Its ranking when it is available (which is based on criteria such as referencing, links pointing the domain name, traffic data …)
— SEO
The SEO performance on the basis of key words
— Analytical data
The website’s analytical data, number of visits, site retention time, visitor acquisition flow, pages generating the most traffic, conversion rate, etc.
— Market
The market addressed by the domain name and its relevance regarding this market,
— Economic activity
Associated economic activity
— Interference
Possible interference
— E-reputation
E-reputation
Finantis Value realizes, from these data, the financial valuation of domain names by adapting the methodologies used for the valuation of brands (ISO 10668 standard). If the domain name is identical to the name of a trademark, it cannot be dissociated from it. Its valuation will therefore necessarily be linked to that of the brand.
In other cases, three methods are particularly considered :
Approach based on historical or reconstitution costs
An approach based on historical or reconstitution costs: acquisition costs of the domain names, operating costs (renewal, associated services, SSL certificates, …), costs of protection and defense of associated rights.
Market-based approach
A market-based approach relies on transactions carried out on trading places and / or comparable domain names.
Prospective approach
A prospective approach related to income attributable to those assets
The value of a domain name is rarely reduced to that of its purchase price and renewal. The activity associated with the domain name directly influences the domain name value.
