A typical domain appraisal tool will give you the following inputs:
1.Exact Searches: It shows how many exact searches a particular domain is getting every month
2.Type-in-Traffic: It also calculates how much type-in-traffic the domain is getting based on exact searches figure.
3.CPC: It shows the cost per click for that domain which is paid by the advertisers.
4.Past sales: It also list similar domains which are sold in past. The appraisal tool tries to list sales that are close to domain which you’re evaluating but sometimes it fails too.
5.Valuation Amount: It shows how much the domain is worth based on the name and the extension it carries.
But it fails to show you the following:
1.Aggregate amount publisher makes: We know the cost per click but we don’t know how much money the publisher of ads are minting for a particular keyword. The valuation tools doesn’t do any math here.
2.Industry: The domain appraisal tools doesn’t address the industry in details. Every keyword is associated with some sort of industry (example: Insurance keyword is for insurance industry and so on) but the appraisal doesn’t give any data with regards to how big or small that industry is.
Therefore, before you sell any domain, the first step is to generate an automated valuation figure, and then you should study the industry in detail to which the keyword/domain name belongs. By doing this, you ensure a reasonable valuation of your domain name. And, lastly, as a seller you exercise full control on the price but you must be reasonable so that a win-win situation is achieved.