DomainMart Introduces New Appraisal Model with Likelihood of Sale

A for sale domain name may be fairly priced, but what is the likelihood of it being sold in the near future? DomainMart uses the classification tree-regressions statistical technique to estimate the likelihood of a sale.

Berkeley, CA (PRWEB) March 27, 2006 – DomainMart, a leading provider of quantitative and analytical domain-name services, today introduced a new domain name appraisal methodology that provides the likelihood of sale for a specified ask price.

“A for sale domain name may be fairly priced, but what is the likelihood of it being sold in the near future?” ponders Alex Tajirian, DomainMart CEO.

To answer this question, DomainMart uses the classification tree-regressions statistical technique to estimate the likelihood of a sale. The model is similar to statistically estimating a logit/probit regression with the variables to be predicted taking only discrete values: sold or unsold. Using the estimated model, one can then predict the likelihood that a particular domain name will be sold at a specified ask price.

The predictors used for estimating the likelihood of a sale are the ask price and control variables, with the control variables branding and traffic values of the domain name. The proxies used in estimating brand and traffic values are based on publicly available information such as result listings on engine searches, the pay-per-click (PPC) data, and the number of links-in.

“We are the first to incorporate the valuable information from unsold, listed domain names in appraisals,” notes Tajirian. “This methodology represents another step forward in the quest to come up with better estimates of domain name value and to increase price efficiency of domain name marketplaces,” adds Tajirian.

Tajirian notes that preliminary test results of the predictive ability of the approach are very promising.

According to Tajirian, there are still a number of unanswered questions with regard to unsold domain names. Future research will look into the price impact, if any, on unsold listings and whether there are variations in listing-to-sale durations for various types of domain names.

About DomainMart
DomainMart is an industry leader in providing domain-name secondary-market products and consulting services, including appraisal, escrow, private investment management funds, protection, valuation, and parking traffic monetization management since 1996.

For more information, please visit http://www.domainmart.com/news/Domain_Name_Sale_Likelihood_Given_Ask_Price.pdf or contact:

Tom Saitori, Marketing Specialist
DomainMart
Tel: +1 (415) 905-4234

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