The 5 P’s of Domain Name Valuation Patented by GoDaddy

By on June 10, 2013
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Website Magazine recently shared that GoDaddy, the world’s most popular domain name registar, has been granted two patents by the USPTO. One very interesting patent is for appraising domain names using a unique system and algorithm. The other is for a method of spinning (generating related domains) using similar data.

Many of the metrics will be familiar to most of you. It’s still interesting to review and be able to compare to stats we presently have. How will your domain names add up?

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The following are the 5 P’s of domain name valuation described in GoDaddy’s patent application.

1. Precision

This data would include the distinct number of keywords for a given domain, domain length and the number of dictionary terms.

2. Popularity

This score would include search result metrics and the number of times keywords are searched per month. (Google AdWords data)

3. Presence

A domain’s presence score would represent its age as well as traffic rankings according to leading web services, such as Alexa and Compete scores.

4. Pattern

A domain’s pattern is determined by its word and letter composition and whether or not it is pronounceable with the arrangement of vowels and consonants. Pattern could determine it it is a one-word domain or a four-letter acronym for example.

5. Pay-Per-Click (PPC)

More in-depth Google AdWords data would be used to determine the relative value of keywords within a domain based on advertiser competition.

GoDaddy Patent Diagram

A Final Step

Once the 5 P’s are taken into consideration, GoDaddy then plans to apply a dynamic multiplier to the algorithm to determine the rarity of a domain by comparing the registration status of the same keywords on various other popular TLDs.

Accuracy and Appearance

The result would be a fairly comprehensive automated domain name appraisal system. I know from experience using tools such as Estibot that there are flaws in these systems. Not every domain can be given a definitively accurate market value, especially unique, brandable and newly minted terms (of which many are continually springing up). One would hope that the system is not completely automated, but it looks as though that will be the case.

You may be wondering where will these appraisals will appear on GoDaddy. As you can see from the diagram above taken from the patent, GoDaddy plans to implement their new appraisal method and the 5 P’s of domain name valuation in three areas; aftermarket auction listings, a domain appraisal service and domain availability checks.

You can view the GoDaddy patent in full here: Appraising domain names using comparative data.

Do you think this will improve the GoDaddy aftermarket experience and popularity or entice aspiring domainers to acquire available domains based on an automated valuation? Please leave a comment with your thoughts.

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About Mark Fulton

Mark is the Founder of DotSauce Magazine and a full time web developer, domain investor, SEO and online marketing professional residing in North Carolina, USA. Visit MarkFulton.com for information on freelance website development, SEO and consultation services.