Identifying and Managing Domain Value Drivers

The domain names become the real economic good. After the establishing those in the early 80th as only technical “address” locating space on the server space people started to demand and supply them. It can be denoted as a starting point of the domain name market. The theory of value used to be one of the crucial questions of economic theory. As for any other, economic and market goods is necessary the question of how the value of the domain name can be estimated. The main objective of the study is to analyze trends in domain names market, explore the value drivers and identify the possibilities of improvement valuation techniques for domain names. The theoretical study witch quantitative analysis for the hypothesis verification is used. Open research questions are placed in particular fields with the goal to improve present state of the art of valuation theory in domain names field. Descriptive statistics and multiple regression modeling are applied. Statistical analysis proved that the value drivers of the domain are not World/Term, Top Level Domain and Market Place. Future research is desired in adjusting the methodology of real options according to domain names‟ market characteristics.