Whether you’re planning on selling your domain name or keeping it forever, it is always a good idea to know how much it is worth. Like the real estate market, the domain market is ever-changing, and not knowing how much your property is worth might mean missing out on an incredible offer or opportunity to sell it.
In order to determine the true value of your domain, you will perform a process called domain valuation or domain appraisal. But before that, let’s explore what makes a domain name valuable. Don’t have any domains yet, or looking to acquire more? You can register one with a domain registrar or buy one that is already registered. Sav specializes in domain registration and sales, so if you’re in the market for a new domain, check out our marketplace.
What Makes a Domain Name Valuable?
The extension your domain name has, or the TLD (top-level domain), refers to the group of letters at the end of a domain name like .com, .org or .gov. Typically .com is the most valuable and in-demand TLD. This is because it is the most popular, memorable and trusted TLD. In 2022, .com domains were 33% more memorable than URLs with other top level domains and it remains the #1 most trusted TLD, with .co in a close second place. But don’t let that discourage you if your domain isn’t .com. In today’s market, other TLDs can rake in some serious cash, especially if they are brandable.
Comparable Domain Values
The value of a domain name can shift dramatically over time, so the price you paid for your domain initially probably isn’t a very accurate representation of what it is worth today. That’s why it is essential to know how much similar domain names are selling for today. Several sites can aid you in your research about domain sales. Namebio is a helpful tool and shows the highest reported sales this year in this domain report. Take some time to familiarize yourself with the world of domain sales and keep your domain name in mind as you look at previous sales. Take note of length, similar keywords, and TLDs of domain names that have sold recently and use them to determine a loose price range your name might fit into.
Is your name simple yet unique and memorable? How does it sound? How does it look? The most high-trafficked sites in the world have memorable yet simple names. If your domain is also catchy and attention-grabbing, it may be even more valuable to buyers.
In general, the shorter a domain is, the more people will pay for it. Potential buyers want shorter domains because they are more memorable and marketable thus attracting more visitors. This has proven to be true when looking at the top 250 sites in the world, 70% of them had domains with 8 characters or fewer and the average number of words was 1.58. Shorter domain names are also rare, making them even more valuable. If your domain is short, chances are it’s worth more.
Keywords play a crucial role in determining a domain’s SEO. Brands want names that are short and simple while still relevant to their industry. In most industries, the majority of sites include popular keywords in their domain name to make it easier for customers to find them. There are a variety of tools online to find relevant keywords, the most popular being Google’s Keyword Planner but other tools such as SEMRush, KeywordSpy and Ahrefs are also great options. Using keyword tools before acquiring a new domain is a great way to insure that you’re getting a great domain.
Existing Site and Traffic
If your name is already used for a site, the level of traffic the site receives is a huge factor in determining a domain’s worth. A site with an existing audience is instantly more valuable to a buyer because they can leverage the traffic immediately for their own site. More so, an established domain that has been active for a while will have better Search Engine Optimization (SEO) than a brand new site, making it even more valuable. If you don’t have a site for your domain name, make one today at Sav.
Determine the Value of your Domain
Domain Appraisal Services
A domain appraisal service will make your life much easier when it comes to valuing your domain. These sites automatically compare your domain against thousands of others and determine your domain’s value based on what similar domains sold for. It can be hard to decide which appraisal service is best, so we will cover the most popular free options.
Estibot is a free automated domain appraisal tool. Estibot will use information from its database to determine a price for your domain. It is important to note that the price Estibot determines is just a suggestion, it may be spot on or it may be way off. It is more important to pay attention to the information that Estibot provides in addition to the price estimate.
Domain Index is another trusted domain appraisal tool. Like Estibot, it is free to use and takes multiple factors into account when determining an appropriate price estimate for your domain name. If you want a more in depth review of your domain, Domain Index also offers a manual appraisal option for $69. Domain Index also provides helpful tools for domainers such as access to a list of domain appraisal experts.
What Is My Domain Worth to Me?
Now that you have an idea of what an appropriate price for your domain is, there is a bigger question to consider: what is your domain worth to you? Are you currently using your domain for a business or site? Do you intend to use it in the future? Does it have sentimental value? Are you just not in the mood to sell? At the end of the day, your domain belongs to you and only you can decide what it sells for.
Come up with a price estimate for your name that makes sense given your research and personal connection to the domain. Then, ask for more than this. In domain sales, it is typical for the buyer to negotiate, so pricing your domain a bit high is completely normal and even recommended.
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