Also called comparable sales · comparables
Comps, explained
Investors pull comps from sales databases such as NameBio, from DNJournal's regular sales reports, and from marketplace and escrow reports. A good comp matches on extension, length, word type and industry, comes from a similar venue, since an investor auction sets a wholesale price and an end-user sale a retail one, and is recent. One comp proves little; a cluster of similar sales gives a range.
Many sales are never reported, because deals are private or under nondisclosure agreements, and the ones that are published lean toward notable prices. Comps therefore set a reference range, not a ceiling or a floor. AI appraisal tools pull comps automatically, but they can match on surface features such as length or a shared word and miss meaning, so check every comp a tool cites before trusting its number.
Example. To price the two-word .com, the investor pulled recent comps for similar two-word names in the same industry and quoted a range in the low four figures.
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Education, not financial, legal or tax advice. Domain investing is speculative and most domain names never sell. Read the disclaimer.