Credibility of Automatic Appraisal of Domain Names

TL;DR

This paper investigates the reliability of automated web applications for valuing domain names, revealing that they often focus on website parameters and traffic rather than true domain valuation.

Contribution

It critically assesses existing domain appraisal tools, highlighting their limitations and the misalignment between their design purpose and actual valuation of domain names.

Findings

Appraisal tools often consider website parameters, not domain-specific factors.

Many tools aim to capture online traffic rather than provide accurate domain value.

Applications frequently track users for advertising, not domain appraisal.

Abstract

Both domain names and entire websites are increasingly frequently treated as assets, the value of which can be appraised. The objective of the present thesis was to verify the credibility of domain name appraisals obtained using generally available web applications in an automated, algorithmic way. In conclusions section, it was mentioned that the terms domain name appraisal and website appraisal are frequently equated. It was also shown that algorithms used in the tested applications consider parameters characterising websites. Thus, they cannot be used to verify the value of domain names themselves. Moreover, during the analysis of the pattern of operation of the appraisal websites it was noticed that they were not made available with domain name or website appraisals in mind. Their objective was to acquire and intercept online traffic. Such applications also left cookie files on recipients' devices, which were then used by advertising systems based on the re-marketing concept.