How Much Is Your Domain Worth? Tutorial About Domain Valuation
How Much Is Your Domain Worth? Tutorial About Domain Valuation

Your domain name can be the name of a successful start-up or a brand new one. But how do you find out how valuable your domain name is? Learn everything you need to know about domain valuation in this article.

How Much Is Your Domain Worth? Tutorial About Domain Valuation

You are extremely connected to your domain, and you were excited to register it.

But now, you want to look for other things. So, in order to make a sale you need a preliminary assessment of the value of your domain.

Just like real estate valuation, domain valuation tells you how much your website is worth. Knowing the value of the domain helps you negotiate better with stakeholders.

Here’s how to evaluate your domain before selling it:

> Check Out: How to Optimize Your Domain Name: Best SEO Practices of 2019

Learn What Makes a Domain Worth it

First, you need to know what makes a domain valuable.

Some factors that affect the value of your domain are:

  • Domain suffix, or part of your domain after the point (.com still remains top rated)
  • Popularity and traffic (if a site has a large audience, the buyer can use it immediately
  • Can be changed to a brand name (unique, clear, easily remembered name)
  • Keywords (the keywords that you will optimize for a website and how they perform on search engines
  • Spelling (if your domain name is spelled correctly)
  • Length (the shorter the name, the more willing to pay for it)

Keep these points in mind when searching for a similar domain to determine the value of your domain.

Look for Sale Prices for Similar Domains

Once you have evaluated the performance of your website, based on the above, it is time to conduct a search on competitors.

In order to find out how much others are willing to pay for your domain, look for the price for the same domain extension.

To do this, you will need to collect data on recent domain sales (such as real estate price collection). A great source is DN Journal. This is a site that also tracks recent domain sales – they can show you the biggest sales in the last 3 weeks.

> Check Out: Say No to Bothering: Tips to Find Interesting Names for Web Sites

Use a Domain Valuation Service

At this point, you will need a domain rating service.

This service is just as it sounds. An evaluator looks at the strengths and weaknesses of your site and summarizes them to give you an estimate worth of your domain name.

These services are very helpful because they make the more difficult technical work for you. The most popular domain evaluator is Estibot – which estimates about 2 million domains per day.

Domain Valuation Service
Domain Valuation Service

This is good news for you because they have the data to support their ratings.

You can also get a second opinion using Godaddy’s rating.

Find out the Buyer’s Payment Limit

Now, how much your site is worth and how much people are willing to pay for it are not necessarily the same thing.

A domain that meets all of the criteria listed above may not have many interested clients. On the contrary, a domain that meets few of these criteria can sell quickly.

The best way to discover it? Set up your domain for sale using the estimated price. This is not as drastic as it sounds – many sites allow you to do this very simply, you can even set a floor price (the minimum price you can accept).

> Check Out: Subdomain vs. Subdirectories: What Will Increase Your Website’s SEO?

That’s all! Hope you found this article useful! Please let us know your thoughts in the comment section below, follow us on twitter and facebook for more news and updates.

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