Thursday, August 18, 2022

How To Value A Website Domain Name

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Your Domain Name Is Part Of Goodwill

Selling Domains – How to PRICE Your Domain Names

While the upfront valuation of an online business may appear to only consist of two variables , at the tail end of a website acquisition, buyers and sellers are required to assign values to the various parts of the acquisition price. Most of the time, the majority of the purchase price is assigned to goodwill.

Accounting Principles Applicable To Domain Names

The domain name is not to be considered as asimple technical tool, but as an intangible asset to write in the balance sheetof the companies and collectivities, if it allows to generate a lasting sourceof profit. In a decision of the French Council of State of December 7th,2016 , the wise persons of the Palais-Royal thus remind that ifthe use of a domain name:

  • Representsa constant source of profits
  • Hasa sufficient sustainability
  • Islikely to be transferred

Then it is an intangible asset of the companyand must follow the associated accounting and tax rules. As such, the domainnames have to be accounted either at their creation cost, or at theiracquisition value, or at their current value for the onesacquired free of charge.

Find The Value Of Your Domain

GoDaddys domain valuation tool will give you insight quickly and efficiently on the domains you already own or domains you want to buy.

While its still prudent to do your own analysis before determining the value of any domains, having this automated, efficient and free domain valuation tool at your disposal is a great place to start.

Go ahead, see what your domain name is worth.

This article includes content originally published on the GoDaddy blog by Joe Styler.

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You Might Want To Sell Your Domain

Seeing the actual value of a domain might even point you in the direction of selling.

If you wish to sell it at auction, choosing a site with a lot of affiliates, like Afternic.com, gives your domain name the most visibility.

If you have a good domain name, at some point youre likely to get an unsolicited offer to purchase the domain privately. If youve used GoDaddy Domain Name Value & Appraisal ahead of time, youll have a good idea of the value it holds and whether or not the offer is on point.

Related: 5 tried-and-true tips for selling domain names for profit

General Value Of Short Domains

How to Buy Domain Name in Cheap Price 2020

If your domain name is short, this makes it more valuable as it is extremely rare to find a domain that is short and that is actually a correctly-spelled word. A short domain doesnt necessarily mean that it is a one-word domain either, LendingTree.com is a fairly short domain under 12 characters and is two words.

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You Might Want To Use It

Using a domain for customized productivity professional email or for a website is common. If you use one for an email address, the shorter and easy-to-remember, the better. If you need a domain for your website, find the one with the most market value to use for the address.

Pro tip: Since the value of a domain is based on keywords, among other things, you will want to use the domain with the highest keyword value to connect to your website for better SEO.

If youre not using your domain for a website, you can actually make money on it by using GoDaddys CashParking service. All you do is sign up for the service and when someone visits your parked site, they will see ads that are relevant to them. When they click on these ads, youll make a percentage of the revenue generated.

Domain Keyword Monthly Search Volume

If the domain you are looking at buying does in fact have keywords exact match or partial you are trying to rank for, it makes sense to determine the search volume of these keywords to see how much potential value they have.

Simply go to , sign in , and do the following:

Under Find new keywords select Search for new keywords using a phrase, website or category:

You should see the following area where youll put in your keywords into the Your product or service section . Then click Get ideas:

Next, select the tab for Keyword ideas to see the search volume for the particular keyword:

This information will show you the average number of times people have searched for that exact keyword, the competition based on a simple criteria of Low, Medium or High, as well as the suggested bid. If youre not familiar with Google AdWords, the suggested bid amount may confuse you. These numbers could get pretty high, just check out this search for defense attorney and how much higher the suggested bid amount is than it is for fitness mentor:

The takeaway is that the higher the search volume, the more competition and the higher the suggested bid, the more valuable the domain if it does in fact contain these exact words or most of them.

Recommended Reading: How Much Does It Cost To Purchase A Domain Name

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.

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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.

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How To Choose A Powerful Domain Name For Your Business

Domain Valuation – How to Price and Sell Domains

There’s a massive shift in business today to move online. Companies like Amazon and Alibaba are betting big that the future of shopping is digital. Others, like Apple and Walmart, are playing both hands. While their physical stores get full support, their online stores are equally important.

It’s difficult to imagine any major business dismissing its online presence and still being successful.

Even small businesses are getting in on the action. A 2021 survey revealed that 71% of small businesses have a website.

The simple fact is that owning a website or domain name is vital for businesses, not just a luxury. And as a startup, you can get the best out of your business if you own a powerful domain name.

In this article I’ll explain how to choose a domain name for your business.

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Understanding Domain Name Valuation

Domain valuation is the process of determining the value of a given domain. Its a similar process to when companies are valued, but much less intensive.

Before we jump into how to do a domain appraisal, lets have a quick overview of how domain names work. If you already have the basics down, such as how to register a domain, feel free to skip to the next section.

If youre just getting started building websites online, this section is for you.

Domain names are synonymous with URLs , but essentially its what a user types into their browser address bar on their search engine to access your site things like HostGator.com, Facebook.com, Google.com, etc.

There are two primary parts that make up a domain, the second level domain and the top level domain. These two factors will also contribute to a domain valuation,, but more on this below.

Heres how top-level and second-level domains work together:

  • Top-level domain. Even though its called top-level, this portion of the domain name is what comes at the end. It can also be referred to as a domain name extension. This is the .com, .org, .net portion of a domain name.
  • Second-level domain. This portion of the domain name is the central portion of a domain and often refers to the name of the website, in hostgator.com,hostgator is the second-level domain and also the name of the company.
  • Whether youre purchasing a domain name for a new project, or simply to hold onto and sell one day, the process remains the same.

    Online Domain Real Estate Has Real Value Here’s How To Understand It

    While there are an infinite number of possible domain names, each can only be used by one person or company. You might wonder why some domain names are worth $2.00 and others $2 million. According to Godaddy.com, some of the most expensive domain names publicly reported include: CarInsurance.com for $49.7 million, VacationRentals.com for $35 million, and Sex.com for $14 million. Why? Well…it’s complicated!

    There are a few reasons you might want to know the value of a domain name. You could own a domain name and want to sell it. Maybe someone has approached you, and you need to know what’s fair value.

    You might decide to invest in promising domain names to resell later at a profit. Each online address can only represent one company, and a limit in supply combined with high demand means profit.

    Over the last 25 years or so, virtual assets like domain names have created millionaires and even billionaires. You could want the best possible domain name for your business.

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    Scale Your Website With Seoco

    In todays SEO world, there is no such thing as buying Park Place and reaping massive returns without developing it out with great content and great links. You might have a $1M raw domain name, but without great content youre domains valuation will be a fraction of its potential.

    As a full service SEO company, its our mission to help businesses scale organic traffic by producing the highest quality content and links. If youre interested in growing your business with the help of strategic SEO and content marketing, were here to help. Please contact us today to get your free site assessment!

    Additional Domain Valuation Tips

    How to Value Your Domain Name

    Online valuation tools can be useful to generate approximate domain name appraisal values, but there are many factors to consider when appraising a domain name.

    Website Outlook is a good tool for a high performing website with many backlinks, a good Google Page Rank, and Alexa Traffic Rank, but keyword value has no real value on Website Outlook.

    The most valuable domain such as AutoInsurance.com may be worth $17,100,000 million on Estibot and Valuate, but only appraise for $5,840 on Website Outlook. Why? The domain name AutoInsurance.com is not being utilized to its fullest advantage. The domains performance stats are lacking compared to most high performing domains such as the branded websites that most web users tend to use on a daily basis. Estibot and Valuate appraise some keyword domains high, whereas they may under appraise valuable domains low. In order to research to assess the value of a domain name, you will need to use domain valuation tools, assess the market value , and compare past sales to determine an accurate appraisal value.

    Online domain valuation tools are only to be used for research purposes, and should not serve as the final buying or selling price. If nothing else, domain valuation website such as Estibot, Valuate, and Website Outlook are useful in determining the difference between keyword and website appraisal values.

    Read Also: Why Are Some Domains So Expensive

    Accuracy Of Website Worth Calculator

    Try our website traffic checker free online tool to calculate income of a website & domain name’s worth which have restricted adult content. If you only want to get an idea of the worth of your website/domain name, you can simply use the Website Worth Calculator. This tool helps you to find your website value, the estimated website traffic, and your domain value. It’s not easy to calculate and estimate a website value exactly. It is based on certain standards of evaluation as in:

    Domain Age. Domain age is an important SEO factor for search engine rankings because search engines use it for calculation trust and authority. Another thing is that spammers register and drop domains quickly, so spamming sites usually have newly registered domain names. But indexing of the site is more important from domain age.

    This tool will help to indicate the logical price of the domain. Daily Advertisement Revenue calculation is based on AdSense income. Because today most of the webmasters use Google AdSense. It is not easy to calculate for different keywords because AdSense can show an ad not related only to the page content, AdSense can choose a specific ad for the visitor. Our estimation is trying to emulate for a better AdSense usage if the website uses 3 AdSense ads on all pages.

    Social Media Visibility. You can share the calculation of your site on social media .

    Think Art Not Science When Calculating Domain Value

    If youre looking for a predetermined formula to calculate exactly what your domain is worth then, unfortunately, youre out of luck. Domain appraisal services can churn out a number based on a complex set of criteria, but theres much more to domain names than algorithms and search rankings. A domain exists in the wider context of the online and offline worlds, and all of their complexities and nuances will play a part in how much interest there will be in your domain.

    To figure out domain value, you ultimately need to understand who your potential buyers are. What industry are they in? Is a website important for their business? How relevant is your domain? A domain is only as valuable as someone is willing to pay for it, so knowing what related domains are priced at, how sought after your domain is, and how much to reasonably expect a buyer to pay will help you arrive at the right number.

    Recommended Reading: How Much For A Domain Name Per Year

    Put Your Domain On The Auction Block

    The third primary option is to put your domain name up for sale. Based on the factors mentioned above, set a starting price and minimum price. You might not sell your domain the first time around, but youll learn a lot about the potential valuation based on the feedback.

    Did people bid? What do the listing analytics tell you? Did people favorite the listing? Did people complain that it was overpriced?

    If youre not interested in selling at the moment but want to get a better idea of the market value for your website, you can always set a ridiculously high minimum and see what happens. Actual bids amount to concrete data, which enable you to properly estimate tangible worth .

    Flippa.com is definitely one of the top auction sites for domain names, though there are a handful of others as well. Wed recommend starting with Flippa to see if you get any traction on their platform.

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