How To Determine The Value Of A Domain Name

General Value Of A Domain That Is Your Brand Name

If you find yourself in a position where someone owns the .com of your brand name, youre in a pretty tough spot to negotiate and you likely didnt do enough preliminary research before choosing your brand name.

Thats the harsh truth but should be understood if you are entering a negotiating position. Still, it doesnt mean that youll end up spending a bunch on a domain name because someone else owns the brand name that you went with.

For example, a client of mine who owns a flight charter company , had a brand name of Great Flight. Unfortunately, this domain, GreatFlight.com, was not available at that time so he settled for GreatFlt.com.

GreatFlt.com didnt meet a lot of my general marketing criteria for a domain name:

It wasnt easy to spell
It wasnt easy to remember
It wasnt technically his brand name

The client asked that I help him decide what the domain GreatFlight.com was worth as he knew it was important to his branding . Taking the general marketing considerations in mind but also the SEO value of a domain is important, and youll learn more about that below.

The story actually ended pretty well as we found that the owner was willing to negotiate. The site had no SEO value and other than being a fairly generic and easy to spell and remember domain, really had no other inherent value. I think the original owner was asking $1,500 for this particular domain but my client ended up getting off him for like $300 or something that did not break the bank. Winning!

Use An Appraisal Service

A domain appraisal service is exactly what it sounds like. Its a website that enables you to find information about your domain, helping you estimate its value and compare it to similar names.

This kind of service will do a lot of the hard work for you. It automatically compares your domain against similar names and collects information about what those other domains sold for. It will also measure your domains worth, based on many of the factors we outlined previously. If youre serious about putting an estimated price on your domain, this is one of the easiest methods for getting an educated answer.

While there are many appraisal sites you can use, were going to look specifically at one of the most well-known. Say hello to EstiBot.

EstiBot is the most widely used domain appraisal tool, with over two million appraisals performed on a daily basis. To try it for yourself, you can start by entering the domain you want to check in the field on the homepage and clicking Appraise.

At that point, you should be presented with a report on the specified domain.

At the top of the page, youll see the estimated value and some basic information about the domain. However, if you scroll down, youll find more details regarding how EstiBot arrived at this value. For instance, you can see the total amounts that similar domains sold for.

You can also view a huge amount of statistics and analytics for the domain, giving you an even clearer picture of its ultimate worth.

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Domain Age And Other Seo Aspects

Domain age refers to the date on which the web address was registered. Domains that, for example, were registered in 2011 celebrate their 10-year anniversary in 2021. Whether the time of registration itself has an influence on how Google and others rate them isnt known. However, if the domain has already been active for years, this will surely influence the ranking and therefore also on the domain value. Especially the content and the number of backlinks that link to the domain determine the reputation of the web address. Another thing to consider is the trustworthiness of the web projects that were published under the domain in the course of time. From a technical, SEO point of view, this is relevant.

Even though websites published under the domain play a role in SEO evaluation, the domain value, as already mentioned, is not the same as the value of these websites. In other words, you only buy or sell the address, unless other conditions have been agreed upon.

Understanding What Is Domain Name Valuation

Domain name valuation is the process of determining the value of a given domain name. The value of a domain can be determined by looking at how much traffic it generates, and sometimes with an auction-style sale. Domain valuations are not always clear cut, though, and may often take into account things like domain history, such as if a domain has been previously sold or transferred before, any pending trademark infringement claims that might exist, etc.

Before we move on to understanding how to value your domain name, you first need to understand what a domain name is. Domain name refers to the web address that you type in the address bar of your browser .

READ: Domain Names: What? Why? And most importantly how much for?

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Availability Of Alternative Top

Now with new TLDs, the combination possibilities of name and extension in the web address area have increased considerably. So, if you want to determine the value of a domain, the availability of alternative top-level domains must also be considered. For example, if you own domain.com but the alternative domain.org is still available, this reduces your chances of achieving a high sales price for your address. If you buy and register domain names with a wide variety of endings right from the start, you will have a better basis for negotiation especially if you focus on the most popular domain endings.

Often, companies and online services secure the desired domain name right away with the most diverse available top-level domains. In addition, there is the approach of publishing content under different sub-level domains. This is referred to as a multiple-domain strategy.

Use A Domain Appraisal Service

Domain appraisal services come in two flavors. You have automated services, such as EstiBot, where you enter a domain and it returns a valuation in seconds:

The problem with automated appraisal tools is they rely on formulas that you have to take with a grain of salt. As we already mentioned, domain value can be quite subjective, so these sites are not the most reliable approach. Theyre also prone to return wildly different results, so youre unlikely to receive consistent estimates:

If you want to rely on a third party to help you appraise your domain, your best bet is to go with a professional service. Sedo, for example, offers domain appraisals starting at $99 per URL. Weve not tested these services ourselves, but wed trust their results a lot more than what you can get from automated tools.

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Finding Your Domain Name Value Heres How

How much is my domain worth? Have you asked yourself this question before? Or have you perhaps received a request from a potential buyer and are not sure how to work out the value of your domain? The past shows us that its not so straightforward to estimate the worth of your domain even web services that specifically support this kind of request often dont provide accurate estimates. Its probably unlikely that your domains worth is in the millions, like the 2005 acquired domain lasvegas.com from the travel agency Vegas.com, which sold for USD 90 million. But other price segments will also see you making a profit for selling your web address.

This article summarizes the key facts on domain value, providing you with a solid foundation on the valuation and costs associated with buying a domain or selling one.

Contents

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An Introduction To Domain Valuation

The simple way to explain a Domain Name Value

Whether youre planning on selling a domain, or you just want to know how much one you own is worth, youll be looking to perform a process called domain valuation. This can also be referred to as domain appraisal, but the principle remains the same. Either way, this is a method for estimating the value of a specific domain name.

Before moving on, lets quickly recap some domain name basics. A domain name refers to the main part of a sites URL, which visitors use to access the main page of that site. For example, our domain name is dreamhost.com.

In turn, a domain name consists of two primary components:

Second-Level Domain : This refers to the main part of the URL, which most commonly contains the name of the website or the business that owns it. In our example, this is dreamhost.
Top-Level Domain : This is what comes at the end of the domain name, which in our case is .com. There are hundreds of TLDs available to use, but some of the most popular include .com, .net, .org, .gov, and .edu.

To add a domain name to your site, youll need to register one with a vendor known as a domain registrar. You can also buy domain names from several hosting companies. In fact, DreamHost specializes in domains by providing an easy interface to search for, purchase, and manage your assets. This can be particularly useful if you want to get your website hosting and domains from the same provider and keep the administration of your entire site under one roof.

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Domain Age As A Domain Valuation Factor

Another thing that is of very small consideration but worth mentioning is domain age, something that . You can usually find the age of a domain and how long the owner has owned it by using a service like Whois.net.

Perhaps more important, from an offering point of view, is determining how long someone has owned the domain. If you use the Whois.net service youll find a Creation Date and that will let you know how long someone has potentially owned a domain .

Still, if you find a domain that has been owned for 10 years and figure that most non-premium domains are about $10 a year to maintain, you can assume, all other factors mentioned above aside, that the owner will want to get his $100 back. This is on you whether you think they deserve it or not.

Increase Your Domain Value With Digital Marketing

Now that weve answered the question, What is my website worth, its time to discover the value of your websites domain. When you know how much your websites worth, you can start working towards increasing your websites value.

With the help of digital marketing strategies, you can drive more qualified traffic to your website, increase trust signals, and create a more valuable website for your business.

How is your websites SEO?

Use our free tool to get your score calculated in under 60 seconds.

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Work With A Trusted Provider Of Domains

Not all domain resellers are above board, and if you pay a company for a domain they dont own, you may lose on both counts: You dont get the domain, and getting your money back may be difficult. Working with a reputable domain provider, meanwhile, offers the peace of mind that youre getting what you pay for.

Find Out What People Are Willing To Pay For Your Domain Name

Taking the time to do research and use estimation tools will undoubtedly be useful. This gives you an idea of the potential price you may be able to charge for your domain. However, its often best to go straight to potential buyers for a definitive answer.

For instance, a domain could theoretically tick many of the boxes we outlined earlier, but still not be one that people are keen to purchase. It could be that the domain simply isnt relevant to anyone, is too similar to an existing prominent site, or it has an unfortunate connotation that makes it less desirable.

On the flip side, the opposite could also be true. A domain that shouldnt be particularly valuable might be just what a particular website owner is looking for. This can make it much more lucrative than anticipated.

The best way to find these things out is by putting the domain name up for sale. That might sound drastic, especially if you dont actually want to lose the domain just yet, but it doesnt have to be a risk. In fact, many sites that enable you to buy and sell domains will also let you set a reserve price for them. If youve ever sold anything on eBay before, this should be a familiar concept.

Lets try this out for ourselves to illustrate the process. The site well use is Flippa, which is an online marketplace for domains.

If you decide that the cost of entry is worth it, click Sign Upon Flippas homepage and enter your personal details.

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Is Buying And Selling Domains Profitable

It can be with the right approach.

When it comes to buying domain names, its all about doing the research. This means pinpointing names with potential value and if theyre already owned by someone else assessing their price against possible ROI.

On the sales side, market forces dictate when and where it makes the most sense to sell. For example, if you manage to purchase newly available domain name suffixes, you may be able to tap into market trends and make a significant profit. Its also worth noting, however, that domain name prices continually fluctuate. In practice, this means that a domain worth big money a month ago could see a sudden value loss. Much like owning land, however, the market typically rights itself if youre willing to wait.

Delivering Domain Success With Namecom

Whats in a name? When it comes to buying and selling domains, everything. Finding a name thats relevant to your target market, and shows signs of increased demand can help drive interest among buyers and boost potential sales prices.

Given the sheer number of domain name options, and the increasing amount of available domain suffixes, however, this can be a daunting task. Best bet? Start with Name.com. From a massive list of available domains, to curated results for memorable names that can help capture buyer interest, to easy aftermarket access, we can help you buy and sell domain names better.

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A Domain Consists Of Two Primary Components:

Top-Level Domain : The domain names top-level domain refers to the last part of the domain in the address bar. For e.g., .com, .net, .org, .gov, .edu, etc

Second-Level Domain: The domain names second-level domain is everything that follows your TLD and typically includes words or phrases such as google.com , bigrock.in

Domain names are an important part of any business or individuals internet presence, and they can often be a domainers most valuable asset. Domain names are bought, sold, transferred, and sometimes even rented out to generate revenue through advertising or affiliate programs.

Whether youre planning to purchase a domain name for a new project or simply to hold onto and sell one day, you need to determine your domains worth.

Number Of Intended Buyers

How to Find Recently Sold Domain Names

If many individuals or companies want to buy your domain name, its an indication that you should increase its value.

Increasing its value will make fewer and more serious buyers approach to you.

Also as a buyer, if there are many people interested in buying the domain name you want to buy, then you should be ready to pay high price.

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How Important Is Your Domain Name For Business

How to improve your SEO ranking with a Top Level Domain name.

The domain name is much more crucial than you may believe. If you are planning your business, you could realize that a lot of the overall picture is its online representation. Its just one aspect that is on the list however, it plays a crucial role. Now, people turn to the internet for assistance, particularly when they want to find specific knowledge or a certain product. If you are looking to make maximum economic value out of your venture, we will need a website.

How To Determine Your Domain Name Value

To find out how much your domain is worth, youll need to take a concrete approach. So, below weve shared three easy steps that can help you learn more about the value of your domain.

Of course, these steps dont have to be taken all at once or in this particular sequence. The purpose here is just to provide a guide that will give you a clear and comprehensive understanding of your domains worth. Lets get started!

Research What Similar Domains Are Selling For

A good starting point for determining your domains worth is researching what domains similar to yours are selling/have sold for. At the very least, this will give you a range to aim for.

There are some resources such as Sedo, DN journal, which compiles data from different marketplaces to show you which websites domain names have brought in the most money lately.

Heres a quick look at DN Journals highest reported domain sales:

Such reports give you an insight into the types of domain names that are sold at the highest price, the domains that bring in the most money, and more valuable information that you can compare to your current domain name to see how you stack up.

Use a Domain Estimation Tool

There are a variety of domain estimation tools out there that will give you a clear idea of what your domain is worth. These tools simplify a lot of difficult estimation work for you. In general, these tools enable you to find information about your domain, helping you estimate its value and compare it to similar names.

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