Alex Tajirian, writing in Circle ID, says:
There are two types of domain name appraisers, designated here as type “1” and type “0,” with the former being appraisers who rely on a scientific approach. A large number of domain owners use the services of type “0”—the nonscientific—or do the appraisal themselves. Approaches used by scientific appraisers include regression-type statistical modeling, discounted cash-flow analysis, and reliance on the Law of Large Numbers.

In this post, Alex looks at some of the typical erroneous arguments against taking a statistical approach and provides an example from law to shed light on some success stories with statistical models that have changed people’s minds. For a concrete example, we use a study on predicting Supreme Court decision-making.

Issues addressed are Appraisal vs. Valuation, Supreme Court Decision Making Study, Common Criticisms of Statistical Models and Is Domain Appraisal Worth It?

To read all of Alex’s post on Circle ID, see www.circleid.com/posts/7102311_appraising_domain_names/