5 Easiest Ways to Determine the Value of a Domain

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Domain flipping is one of the fastest growing markets in the world. It has been compared to the real estate market, because if you buy low and sell high, you can make a lot of money quickly.

“What is the value of a domain? It depends on what you want to use it for. If you’re looking to sell it, then the sky’s the limit! But if you’re looking to buy one and build your business there, then let me help.”

This post will cover 5 methods that can be used to determine how much a domain name is worth by showing examples and giving advice on how to maximize its potential. I’ll also give some tips on things not to do when buying or selling domains so as not waste time or money.


How do you value a domain name?

The value of a domain name depends on the type of domain, the availability and demand in the market, and your business model.

Most people are aware that premium domains can sell for hundreds of thousands or even millions – but what about more common names? There is no set answer to this question because it’s all relative to supply and demand. For example, you may browse a registry with 1000 available .coms priced at $200 each — so an individual would need to invest 2000 USD up front before they’re able to own their desired domain name.

On the other hand, a certain company may have paid 100k USD upfront for a particular web address (domain) because they know the value it has—and want exclusivity over its use by anyone else.


How to Determine the right value of a domain name?

  • The best way to determine the value of your domain name is really just by doing research.
  • You can do this by checking out how much similar domains are selling for on the market; you might be surprised at what a great investment a good domain makes, or that it’s not worth as much as you thought!
  • Another thing to keep in mind is that newer and less common names typically don’t sell for very high prices because there will always be an available option for someone else who wants one like yours (for the right price).
  • As long as these factors apply, then any average Joe with some spare money could buy the domain they want—so if you’re thinking about buying up all the premium .com names you see, the best thing to do is just wait and make your move when something really good pops up.
  • If you want to get a ball park idea of what the value might be for any given domain name then feel free to use this Domain Valuation Calculator from Sedo.com!
  • You can also look at websites like ExpiredDomains.net that list domains with expiration dates so they are easier to find.
  • However, keep in mind that even if there’s nothing available right now on these sites it doesn’t mean it won’t turn up soon; patience pays off every time!

The Right value of a domain name depends on which factors?

The right value of a domain name depends on 5 main factors, those are:

The Domain’s Age:

The domain’s age is the key factor in determining the domain’s value. The older a domain name, the more valuable it is and the harder it will be to get your hands on it;

A domain’s age has a drastic impact on its value. The older the domain, the more valuable it is – and this makes sense! A domain that was registered in 1995 probably won’t have as much of an online presence as one which was registered in 2005.

A study by DomainTools showed that domains with less than 5 years old have a median price of $2,430; domains 5-10 years old were priced at $4,890; and domains 10-20 years old had a median price of $6,250. This data shows that there is an increase in value for each additional year past five.

The Domain’s Traffic:

Traffic determines how popular a website or business is so if you have an old site that has been attracting visitors for years then this counts as traffic–in other words, big points!

Domains with high-traffic are generally worth much more than domains without any traffic at all;

The Domain Valuation Calculator from Sedo.com can help give you an idea of what the potential value might be based off things like age and traffic (but again keep in mind factors such as keyword popularity).

The Type of Extension (.com vs. .biz):

If you are in the market for a domain name, it is important to know which extension (.com vs. .biz) will give your business the best chance at success.

A .com address will be more expensive than a .biz address but Google has said that they prefer domains ending with this extension when deciding what sites rank higher in search results.  These days, most people use both extensions so if you want to have more flexibility, go with .com and if you don’t care about SEO then save money by registering your domain as a .biz site instead.

How many Domains are Similar to it (according to its extensions and keywords in the name):

It’s important to identify the right keyword for your domain name. Many people want a dotcom extension so they can get better results on Google. Other extensions are available, such as .org and .net, but these usually don’t come with the higher price tag seen in domains ending in dotcom. The best way to find out which extension is best for you is by researching what keywords other similar domains have used and how their search engine ranking has been affected.

Backlinks:

A domain name’s value is determined by the number of backlinks it has. The higher the number, the better its worth. The highest number of backlinks typically comes from high quality links that are relevant to your site or niche (this can be a little time consuming but it pays off in the long run). Don’t pay attention to numbers such as Alexa rank which means nothing when it comes down to determining the real value a domain. It may not always make sense but if there is an established brand in your industry then they will have more authority when it come to the ranking for the keyword.

Also check Spam score, Spam score is the measure of how many spammy backlinks a domain has. It determines the value of a domain name, and if you are interested in buying or selling a domain name, it’s important to know your spam score. A higher spam score means that more links on your site are pointing to sites with content that may be objectionable for search engines. So, Lower the Spam Score is a good domain name.


Best Domain Value Checker (Appraisal Services):

When it comes to making a living online, your domain name is the most important thing you have. A good appraiser will be able to analyze this and show what keywords are working for or against you when it comes time for sale. Researching with an appraisal service can save valuable time.

Some of the Appraisal Tools are:

EstiBot:

Thanks to EstiBot, estimating the total potential worth of your domain name and related keywords is easier than ever before. With a single click, you can know whether or not you’re sitting on a treasure trove of online real estate or the next piece of internet history. Your future self will thank you!

Godaddy Appraisal:

An amazing service that’s trusted by 20 million people. If you’re looking for a good domain name or are interested in selling, buying, or just inquiring about your site, this is the right place!

Website Outlook:

See what your website is worth with just a few click of sleep! Who knows, you might have the next Angelina Jolie on your hands.


Other Factors to determine the right value of a domain Name

Short Length:

Your domain name is what you are known by on the internet. Short domains can be difficult to find, so if yours is short and catchy it could mean your site will have a higher worth than others with longer names.

Correct Spelling:

Spelling a domain incorrectly will cause your website to be inaccessible on Internet browsers like Google Chrome or Safari as they can’t find what you’re looking for online.

If you want your domain to attract visitors, make sure the spelling is correct. People are more likely to check out afterarticle.com than they would be with a misspelling like ‘aftararticle’. Of course there will always be exceptions and alternate spellings can still sell well – just not for as much money!

Meaningful Words:

Domain names that have in-demand keywords will increase the value. However, this does not mean more words equals more money. A meaningful word can help you to earn even better on selling domain names.


Conclusion:

I hope you learned a thing or two about domain flipping. If you are new to this business, then it’s important that you do your research and know what the right value of your domains is before selling them on Flippa! It’s also good if you have an idea of how much money people will be willing to spend for one of these domains so make sure you don’t overprice any of them when they go up for auction.

The last tip I can give from my own experience in this industry is that always remember to get as many backlinks as possible because those are going to help with SEO rankings and getting traffic through organic search. Let me know in the comment section which tips work best for you?

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