05-20-2003, 06:14 AM
Asalam o alaikum
A realy interesting question... I'm not so sure if its 'cost' or 'Fair Value' that we should measure it at,,,, initially there r chances that both r gonna correspond... however u r more interested in knowing how to measure the fair value (as I can make out). Well, lots of factors are gonna be considered for that, for eg. loan.com may not have value for u, but for a bank it may carry great value (so we consider VALUE TO THE PROSPECTIVE BUYER, rather the market as a whole or should I say that selected group of buyers is the market for the domain) plus a common determinant is the traffic that site attracts (this is more important when FV is reviewed subsequently) we can also segragate the 'active traffic' that is those who actually transacted on the domain and 'surfing traffic' that only had the promotional value etc. A thing that may bring negative move in FV is the association of a particular domain to a brand for eg. if MCB owns 'loan.com' and people have used it for quite some yrs and have started associating it with MCB, then probly for MCB its value maybe great but for HBL or other banks it may not be so much, cuz they thing its already taken over and so the active market for 'loan.com' may substantially reduce.
Hope this helps, and if u've anything to help me on and add to this interesting issue, pls.
A realy interesting question... I'm not so sure if its 'cost' or 'Fair Value' that we should measure it at,,,, initially there r chances that both r gonna correspond... however u r more interested in knowing how to measure the fair value (as I can make out). Well, lots of factors are gonna be considered for that, for eg. loan.com may not have value for u, but for a bank it may carry great value (so we consider VALUE TO THE PROSPECTIVE BUYER, rather the market as a whole or should I say that selected group of buyers is the market for the domain) plus a common determinant is the traffic that site attracts (this is more important when FV is reviewed subsequently) we can also segragate the 'active traffic' that is those who actually transacted on the domain and 'surfing traffic' that only had the promotional value etc. A thing that may bring negative move in FV is the association of a particular domain to a brand for eg. if MCB owns 'loan.com' and people have used it for quite some yrs and have started associating it with MCB, then probly for MCB its value maybe great but for HBL or other banks it may not be so much, cuz they thing its already taken over and so the active market for 'loan.com' may substantially reduce.
Hope this helps, and if u've anything to help me on and add to this interesting issue, pls.
