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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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.
Three Crucial Tips For Increasing The Value Of A Domain Name
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Each year, more than 600,000 small businesses open in the United States, and a large portion of those have an online presence with a unique domain name.
A good domain name can command a price between $5,000 and $20,000 — or even more. Carinsurance.com sold for nearly $50 million in 2010. In the same year, Facebook paid $8.5 million for fb.com, only to have it redirect to Facebook.com.
In short, if you own a premium domain, theres a good chance you can earn some serious coin for its rights. But that doesnt mean a profit is guaranteed — as with any business venture, there are still best practices to follow and pitfalls to avoid.
Over the 600-plus transactions Ive completed as a broker, here are the most effective tips Ive learned to make a domain name as attractive to buyers as possible:
The Top Factors Affecting A Domain Names Value
A number of factors come into play when determining the value of a domain name — the extension , the keyword popularity and even the length of the name can drastically affect market value. Even if you already own a desirable domain, you can increase its value considerably before you sell with comparatively little time and effort.
1. A Successful Website
2. Associated Social Media Pages
Active social media pages accompanying a domain name and website can make for a desirable package. When all of these components are in place, you’re selling a turn-key online presence.
3. Similar Domain Variations
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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:
Whether youre purchasing a domain name for a new project, or simply to hold onto and sell one day, the process remains the same.
Value It Using Similar Domain Sales
One of the simplest and most accurate ways to value a domain name is to look at the sales prices of similar domain names. Platforms like Flippa and DNJournal provide a list of recently sold domain names, along with their final sale price.
Valuing your domain using past sales is a great way to achieve an accurate value, as markets respond quickly to current trends. For example, many LLLL.com domains, which achieve high prices right now, are undervalued using valuation tools such as Estibot and Freevaluator.
There are several factors to keep in mind when you value a domain name using the past sales activity of similar domains:
· Is your domain really similar to the examples youre viewing? Does it have a similar keyword search volume? Does it have a similar average CPC? Theres often a significant difference in search value between similar domain names.
· How active were past auctions for similar domain names? Domain auctions that receive a lot of activity are often for hot domains domains that are related to current trends and have significant short-term value.
· How large is the audience for this domain? Some domains have a broad and significant audience, while others only attract the attention of a small few. If your domain has a large audience, it will likely attract more attention.
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How Much My Domain Name Worth
Do you know your domain name value? If you dont know the value of your domain name. Certainly, you should check the value of this. The value of domain name can in the range of few dollars to in six or seven-figure range amount. Above all, a domain name has the value of how much a buyer is willing to pay for it. So, before purchasing or selling a domain you should know the value of it. Consequently, you will make good deals on this domain. And estimating the value of your domain is requiring research. But before all of these, the process needs to understand some terms and Domain Name Worth valuation methods.
General Value Of Memorable Domain Names
Domains that are really easy to remember will merit more value. Amazon.com is the easiest domain to remember that I can think of because it rhymes . If you are seeking to buy a domain that is really memorable expect to pay more for it than a domain that is weird, like Abstentious.com or something .
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Domain Name Calculators Are They Accurate
Personally, I dont think software can be quite as subjective as a human when determining the value of a domain name. While some objective analysis is important, a lot of the characteristics of a domain names value should be examined relative to your business and its goals.
For starters, a domain name calculator is going to provide very little SEO background into what a site is worth or what it ranks for. Some of the criteria one domain name calculator used to determine the value of a domain included PageRank, the number of pages in Googles index, its social media visibility, the number of backlinks as well as the estimated traffic.
While these are important metrics, I found that they were completely inaccurate compared to the analysis I performed with my many SEO software tools. In fact, one of these domain calculator sites placed the value of the FitnessMentor.com site at over $7,000!
Keep in mind that this site only has a PageRank of 2, very few pages that are actually non-product specific , no social visibility , no backlinks , and five daily visitors . Im not sure where they put all their weight but this site is clearly not worth over $7,000.
Maybe sites like these are why domain name sellers tend to be completely on a different planet when it comes to determining what their sites are actually worth.
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.
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Where To Sell Your Website
As with any sale, its incredibly important to make sure that you sell your website through a safe, secure, and reputable website broker to avoid issues.
Flippa
We looked at Flippas business valuation calculator above but Flippa is mainly a marketplace for buying and selling online businesses. Once youve figured out what your business is worth, you might want to take the next step.
Describing itself as the #1 platform to buy and sell a business, Flippa has a handy directory of trusted business brokers, showing their location, specialties and the price range of the businesses that they represent. You can then list your business with your chosen broker through a Flippa account.
Empire Flippers
Again, Empire Flippers offer a great business value calculator and they can take care of the next step, allowing you to make more money than if you sold the site on your own.
When you list your business with Empire Flippers, it will be sent out to over 90,000 . This gets your site seen by more people and attracts more genuine interest. These connections allow Empire Flippers to target buyers that they know are looking for a particular type of site.
FE International
FE International is a professional website broker offering direct access to a global network of over 41,000 pre-qualified investors.
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Examples Of Brands Using Emds
You might not be aware, but many well known brands own EMDs. However, most of them have been redirected to the brand website, suggesting that they may have been bought as a defensive strategy , or perhaps they were too restrictive for the products and services that the company provided.
Brands redirecting EMDs
Footballbetting.co.uk – Ladbrokes Flowers.co.uk – Eflorist Toys.co.uk – Toys R Us Holidays.co.uk – First Choice CloudComputing.com – Dell
Brands with active websites using EMDs Hotels.com Diy.com – B& Q MetalDetectors.co.uk – Viking Metal Detectors Fancydress.com – Angels Fancy Dress CreditReport.com – Experian
More examples can be found on Domain Sherpa or Memorable Domains .
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A Lot Of Times Value Is Really Just Perceived Anyway Isnt It
A common practice on web site selling sites like Flippa, is to buy a decent web site, attach what is referred to as a premium domain to it, and resell it, landing the clever seller who knows a little about DNS a cool profit. And if hes a nice guy, he will also do the change of address in Google and Bing.
To me, for the most part, value is just perceived when it comes to domains. I know by default people value .tv domains higher than they do a .com, but thats only because the powers-that-be made the default initial price for .tv domains much higher.
And there is still the lingering suggestion that the keywords in the domain name are important for SEO. Are they? Maybe see Googles reaction to that to see for sure. Sure, we know the words in a URL can make a difference for SEO, but will the homepage rank higher because of the words in the domain name? It seems not so much these days, if at all.
Yes, a site about the raw food diet could probably do wonders for humans benefit if that phrase were in the domain, because it will be semi-clear what the site is about by looking at the domain name. But, there has been a lot of spam sites created with high focus on keywords in the domain name, with other sites without such domains having more value in terms of content. Plus, what about clever branding, like a site about raw foods might be called: RawkItOut for a play on words. Should it not be given the same chance for homepage ranking?
How To Respond To The Initial Inquiry
There are a couple of things you should do when someone reaches out about buying a domain name.
First, try to qualify the buyer. Is it a big company? A budding entrepreneur? All salespeople try to qualify their buyers to make sure theyre serious and capable of buying what theyre selling. This is no different with domain names.
Second, respond to keep the sale moving forward. There are two ways to do this:
Theres a lot of debate about which approach to take. People usually like the other party to make an initial offer. After all, you dont want to quote a price of $5,000 if the buyer is going to make a starting offer of $10,000!
If the buyer contacted you out of the blue and you havent listed the domain for sale, its fair to ask the buyer to make an offer. You can inform them that you havent thought about selling the domain before, and tell them youre open to offers.
If youve marketed the domain for sale, its probably better to quote a price to open negotiations. But what price should you give?
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Is There Any Real Value In A Domain Name Choice
I guess my point of all of this is, if you believe for example, that a domain has more value because it is a golden oldie, and you pay more for it , then it is more valuable. However, you wont be able to sell me a .com for more than $12 just because its aged, unless its attached to a web site. Because I dont feel that age has value in this case. Its a matter of a opinion, one that premium domain sellers would love for you to buy into.
And, if you are holding on to the idea that using your target keyword in the domain name will bring you higher in search results, and you pay more for it, then it is more valuable , but itd be tough to measure your ROI.
To me, I think the value of a domain lies in what it is being used for, and if the intended audience will see it appropriate for the intended purpose.
There are areas that are pretty much undeniable true though. Things like:
- A domain that is short and/or easy to remember probably has more value than the default price you could have bought it for from NameCheap or Godaddy, etc.
- A domain name that matches, precisely, the intended purpose of the site it is attached to has more value.
Another good read on this topic is our domain name picking tips article.
What Is The Value Of Your Domain Name
Honestly, the knitting.com guys story didnt interest me very much. Two naive businessmen who had no feel for the knitting world and what a tough business it can be. Like my friend Carol used to say, the dog-eat-dog world of knitting.
Yes, it was kind of exciting to watch these two guys brag about getting knitting.com for a stealstart the carstart the car!
But it made me start thinking about the value of a domain name.
Years ago, I had a co-worker who owned the most popular chess site on the web. It wasnt chess.com, it was something like chess-news.com. I remember he sold his domain name to a British guy for £10,000. That was back in the early 2000s. Im not even sure I could find the site today. So things change.
Im ashamed to admit, I used to own the URL simplyknit.com and lost it through a stupid non-renewal mishap. If you go by GoDaddy, simplyknit.com is for sale for $2,280 (although its estimated to be worth a little over $1,300. Although, like knitting.com, its probably negotiable.
But, what is queerjoe.com worth as a domain? How about doublepointed.com?
Using the same estimator tool both queerjoe.com and doublepointed.com are worth about $1,000. They base it on similar sales of URLs, the .com extension, the number of letters in the domain name and whether the domain name is a common word.
Anyone own a valuable URL? Sold one for a lot?
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