Domain Name Appraisal Guide: How To Find Domain Value

Domains can be treated as Internet Real Estate. Your domain represents your business, your brand so definitely it worth a value. A domain name can worth from a few dollars to 7 figures depending on valuation factors. A successful business domain or brand can worth more than what most people think. So unless you appraise your domain, you never know how much it may worth.

Since the beginning of the internet, some successful domains were sold for 7 or 8 figures. Well, don’t get too excited. Chances of your domain holding such value is very slim. Still, it is always a good thing to know the worth of your internet assets like domains.

How much are domains worth?

The actual worth of your domain is how much a buyer is willing to pay for your domain. Usually, most of the good branded domains are sold for hundreds to thousands of dollars these days. As good domains worth the higher value, buying & selling domains became a good business for the last couple of years.

Now the question comes, what’s my domain worth? Well, the best answer to this question is Domain appraisal. With a good domain value estimator, you can easily estimate the worth of your domain. Remember, the domain appraisal tools or value estimators can only estimate the price. It doesn’t necessarily mean the real price of your domain.

Domain Appraisal: Why You Should Appraise?

It’s always good to know the price of your internet asset or domain because at some stage of life you may want to sell it. Now comes the question of asking price. If you are not familiar with the domain market then there is a chance that you are missing a good opportunity because your brand may worth more than your expectations. So your best bet is domain appraisal or domain value estimator. With this type of service, you can easily estimate your domain value within a very short period so that you can secure a good asking price for your domain.

Many online services that can help you to appraise your domain. Some of them are paid and some of them are free. I shall tell more of them later but I think you already got an idea about domain appraisal. Please understand that those prices are estimated and not the actual value of your domain. The actual price depends on the market situation and some special factors. So I would suggest you take a look at the necessary factors for calculating domain price.

Domain Value: Necessary Factors For Calculating Domain Worth

To calculate how much a domain may worth, it’s necessary to know the factors that make a domain valuable. Let’s consider that you are looking for an established domain. Now think carefully about the factors that can influence your decision. Well, it will become easier if you have some information on the recent domain sales values on the market.

Necessary Factors for Appraising Domain Name
Necessary Factors for Appraising Domain Name

Top-Level Domain:

Including the new GTLDs, there are hundreds of TLDs but people can usually remember the top few TLDs like .com, .org, .net, etc. The other TLDs are relatively new and few people trust them. So not all TLDs are valuable. Usually, people trends to purchase dot com more than any other TLDs. So the price of dot com is relatively higher in the market.

Number Of Characters:

The number of characters is always an important factor and the less the number of character the more the value of the domain. Usually, domains that have only 3-5 characters, have a higher value than the longer domain names. Indeed, a 3-5 letter domain name usually can’t contain good keywords but it has higher value because it’s easy to remember and a good name for a brand.

Keywords:

A domain with a good keyword always has a higher value. Please understand that only the keyword doesn’t increase the value. There are a few factors regarding keywords. Like- intent, monthly searches, etc. Not all keywords are valuable. So if the keyword has a purchasing intent then the value increases a lot. If a domain has a keyword that has a lot of monthly searches then it’s value also increases. This type of keywords are usually broad keywords, like – Hotels.com

Organic Traffic Volume:

Organic traffic volume is also an important factor for domain value. If a domain is already listed in google and driving a consistent flow of organic traffic then its value increases exponentially. Because most of the time, this type of domain itself has a higher brand value. Purchasing this type of domain reduces a lot of work after a client purchase it, as it automatically generates some steady traffic flow for the brand.

Easy To Brand:

If a domain is easy for branding, it deserves higher value. This type of domain has an irresistible appeal to the buyers. This type of domain is short, easy to remember and easy to spell. So it has greater value to the buyers. People usually tend to buy short and brandable domains, even if it doesn’t include a good keyword.

Age Of The Domain:

Domains that are around for a long time have a higher value because they have the greater trust of search engines and are easy to do SEO. Remember, this benefit only applies to the domains that are active. Old domains are already indexed by search engines and moreover, search engines know that these domains are stable and not spammy. So its easier to rank with this type of domain than the domains that are around for only a few months.

Correct Spelling:

Correct spelling is one of the important factors that decide the domain value. A wrongly spelled domain usually has a much lower value than the correct one and relatively hard to sell. Sometimes the number also has a direct impact on domain value. If longer domain names contain numbers then the value decreases. But it depends on if the number is making the domain name smooth to spell. Like: Burger4you.com will definitely have a higher value than Burger678.com if the other factors remain the same.

What makes a domain name valuable?

There are two things that make a domain name valuable. First, brand-ability and second is the necessary factors that we have already discussed earlier. Still, for your convenience allow me to list them again in a different manner. There is no order so I’m not saying that the first one is more important than the last one.

  • GTLD or Top Level Domain (.com,.info,.org,.net, etc)
  • Traffic Volume
  • Keyword
  • Short and sweet
  • Easy to remember
  • Easy to spell
  • Number of Valuable backlinks
  • No previous spam link record (Beware of the spammy domains !!)
  • Age of the domain

Do’s & Don’ts To Increase Your Domain Value:

Some people use unethical practices to increase their domain value temporarily. This type of practice gets caught easily if the buyer is alert. So it’s better to avoid this type of malpractice.

Do's & Don'ts
Do’s & Don’ts

Do’s To Increase Your Domain Value:

  • First of all, make sure that you have registered yourself as the domain owner.
  • Always value your domain and treat it as your internet asset. So keep your domain on auto-renewal so that nobody can take it away if you forget to renew.
  • Make sure that you have bought the domain for long term (more than 1 year)
  • Learn about SEO and try to increase your organic traffic with internal and external link building.
  • If you have a website, make it look beautiful.

Don’ts:

  • Never buy your domain for the short-term.
  • Don’t spam from your domain. In other words, don’t publish spammy content.
  • Don’t spam from your domain email.
  • Don’t try unethical ways to increase your domain value.
  • Never forget to bargain. Your domain may worth more than you expect.

Domain Appraisal: How To Appraise Your Domain

We have already discussed the factors that determine a domain’s value. But knowing those factors will only help you to have a vouge idea on how the pricing works. There is no hard and fast rule that can determine the actual price. So there are some easy ways to appraise your domain.

Domain Market Research: Recently Sold Domain Values

Domain Market

Well, appraising a domain will become easier if you have some information on the recent domain sales values on the market. If you don’t understand the market, how will you sell it? So it’s always better to do some market research and it will help you a lot to understand the current market scenario. There are some well-known websites where you can find the recently sold domain price. Like: DN Journal.

Now, you may ask, how those data help me to find the value of my domain? The answer is not complicated at all. If you see a domain name that has similarities with your domain name then it’s possible that people are looking for domains similar to yours. So you have a better chance of having a gold mine(highly-priced domain).

Appraise A Domain Name With Domain Valuation Tools

Other than market research, there is another way to quickly find the worth of the domain and that is, using a domain valuation tool. So what is a domain valuation tool and how does it work? Well, domain valuation tools actually judge your domain value with the valuation algorithm. This algorithm is determined by different factors. I’m not going to discuss those algorithms here as it’s out of scope for this blog but if you read the domain valuation factors stated in this blog, you can roughly have an idea.

Best Domain Appraisal Tools and Domain Name Value Checkers

There are a lot of domain valuation tools out there and some of them are really good at estimating the price. Please understand that different tools use different formulas to estimate. So the price is always an estimation and may vary. Still, these tools analyze all the data and factors and come up with a price that can be close to what buyers want to offer. So it’s a wise idea to invest in these tools.

Estibot: Free Domain Name Appraisal Service

Estibot is one of the best domain appraisal services out there. It offers a comprehensive list of tools that can help to find the best value for your domain. Estibot not only analyze your domain data but also includes keywords with search volumes and other important value factors.

Estibot, Free Domain Appraisal Tool
Estibot, Free Domain Appraisal Tool

Overall, Estibot is a fantastic tool for appraising your domain but please understand that no valuation tool can actually find the brand value of your domain. Though Estibot offers a lot of comprehensive data, it still lacks to find the brand value of your domain.

Free Valuator: Free Domain Name Appraisal

Free Valuator is another good tool for domain appraisal. Free valuator not only calculates the value of your domain, it also tells you other important factors like keywords, website rankings, etc. You can instantly find the value of your domain with Free Valuator.

Free Valuator. Free Domain Appraisal
Free Valuator. Free Domain Appraisal

The best thing you will find using Free Valuator is its crowd appraisal tool. This tool helps you to put your domain to the crowd for appraisal.

GoDaddy: Domain Name Value & Appraisal

GoDaddy is one of the best domain registrars out there and they also offer domain nave valuation service. GoDaddy domain name valuation tool is one of the best out there. They use machine learning and its massive data to determine the domain value.

GoDaddy, Domain Name Value & Appraisal
GoDaddy, Domain Name Value & Appraisal

I would highly recommend this tool as GoDaddy not only covers most of the important factors of domain appraisal but also considers the SEO factors like the popularity of the keywords. So it removes a lot of guesswork and helps to find the value which can be close to the actual value. Remember, no domain valuation tool can valuate the brand value of your domain. So, end of the day it’s the buyers call, how much they are willing to pay for the domain.

Sedo: Domain Appraisal

Sedo not only offers an excellent way to find the value of your domain but also your entire portfolio. The best thing that parts Sedo form another domain appraisal service is, it considers most of the valuation factors as well as search engine suitability, advertisement potential, and business potential.

Sedo, Domain Appraisal
Sedo, Domain Appraisal

So if you want a better valuation for your domain, you can easily count on Sedo. Though the premium service is a bit costly but it worths it.

Domainindex: Domain Name Appraisal Service

Another excellent tool for finding your domain worth. It’s a good tool to keep at your arsenal and above all, it’s free(up to a certain quota). Domainindex not only calculates the important factors but also calculates trademark risk.

Domainindex, Domain Name Appraisal Service
Domainindex, Domain Name Appraisal Service

In a nutshell, Domainindex offers the best possible appraisal technology entirely based on a self-learning statistical model. So, it’s not the best out there but it helps you a lot to find the domain value.

Domain Appraisal Certificate: Does It Worth?

Domain appraisal certificates are actually a way to make the buyer understand your domain potential. Well, usually buyers only care about the certificates issued by the top domain appraisal services. It will be a wise idea to not waste your money on certificates issued by any less known domain appraisal service. There are also some well-known domain appraisal service providers who offer free certificates. So if you need one, you can collect a certificate from those service providers. Remember, not all buyers will care about certificates.

Automated Appraisal: Does It Really Work? (Don’t Get Shocked)

Well, That is an interesting area to explore. So far, we have discussed many tools that do the automated appraisal and some have an option for manual appraisal. Now you can ask if there is an automated way then why should I go for manual or crowd appraisal? The answer is, there is no exact way to measure in an automated way because domains are a hundred percent unique assets.

Let’s consider two domains, man.com & gen.com. If every measuring factors remain the same then the automated appraisal tool will show the same appraisal value for those two domains. But we know that both values can actually never be the same because it depends on the buyer’s choice. So, automated appraisals are useless, aren’t they? No, actually automated appraisals are also useful if you need bulk appraisal within a very short time. At the same time, buyers also can use an automated tool for valuation estimation. In that case, if both buyers and sellers use the same automated tool then it increases the credibility of asking price.

Many buyers often ask for an appraisal certification from a specific service provider, which is good and also bad. If the certification is a paid one and if the buyer doesn’t contact after you provide him the certificate then you will simply lose the money. There are also some scammer who acts as a buyer to scam you. So you should be cautious about paid certifications.

Domain Business: Buying & Selling Domain Names

Well, so far we have talked about domain appraisal, techniques and value estimation factors. Now its time to discuss the marketplace. Because if you have no intention of purchasing or selling a domain, then why would you appraise? So, let’s get to the point. Is buying and selling domain names still a profitable business? The answer is, Yes it is. If you are not familiar with the term “Domain Flipping” then now is the time to do some research on domain flipping. As I’ve told earlier, a domain is an internet real estate. So just like people flip homes, people also flip domains. The basic concept of domain flipping is, you buy a good domain which you think has great potential, and you hold it until you find a buyer for that domain and sell it with a much higher price.

Domain Investing Or Domain Flipping: Tips For Making Profit

  • Before buying do some research. Don’t just buy if you think it will be profitable. Think from a buyer’s perspective. Is the name lucrative enough for a buyer to create a brand? Is the domain fresh and new? If the domain is an old one then take a look at its reputation before you buy. You can also check domain authority rank if possible.
  • Patience is the key. So, if you think that you will hold for a few months and sell it with a higher price then chances are you will fail. It’s not totally impossible to sell a domain within a few months but that is too rare. So don’t hope for a quick sale and hold it until you find a potential buyer. Never make haste in the domain trading business.
  • If you are a starter, then don’t start with hundreds of domains. Rather start with a few good ones and build them up.
  • Before just placing any arbitrary price for your domain, check with 3-5 domain appraisal tools so that you have an idea about how much a buyer will be willing to pay. don’t forget to check the statistics that come along with the appraisal data. It will help you a lot in the long run.
  • If you think the domain has a high potential for a brand then instead of just keeping it, try to build a beautiful brand website. Put some good articles based on keyword research. Do some search engine optimization and make a brand value for that domain. This will help you in the long run and it will be much easier to catch potential buyers for that domain.

Domain Valuation Vs Website Valuation: How To Make Profit?

Well, this is interesting because if you have an enter website or blog then why would you just try to sell the domain? Sometimes selling just the domain seems the right thing to do but not always. If your website or blog has good content and driving some traffic regularly then why would you only sell the domain? Selling the whole website(brand) is much easier than you think it is. There are some marketplace where you can list your entire website or blog for sale. You can even put a banner on your website or blog for this. Remember, selling a brand is always profitable.

Things To Consider Before Buying Old Domains

Buying Old Domain

Many of us often go after old domains because some of those old domains are gold mines. Well, some of them and not all of them. Some of those old domains are gold mines because they have great SEO value and branding value. They are short and catchy. So, we can predict that those domains deserve a higher price. Now, on the other hand, some old domains are previously used for unethical purposes like scamming or previously known as phishing sites. What if you accidentally buy one of those domains? Yes, you will be in trouble and your investment will be in jeopardy. So, let’s explore the issues and learn how to get rid of them.

  • Check if the domain has DMCA (Digital Millennium Copyright Act) issue. Most of the auto-blogging old domains have these types of issues. Because people created those blogs for unethical purposes and for some fast cash. you can learn more from the following URL: https://transparencyreport.google.com/copyright/overview
  • Check If the Domain has Trademark Issue. If you buy any trademark protected domain of a large company then you would be in trouble. You may even have to pay for the damage to their brand. So before buying, do a trademark search. The following URL may help: http://tmsearch.uspto.gov/
  • Check if the domain was used for different niches. Some of the old domains may come with many niches because different users used it for different niches. So, there should be many backlinks which can be a curse instead of a blessing if you want to use it for a totally different niche.

Domain Broker: Can Brokers Sell Domain At High Price?

Domain Broker

A domain name broker is usually a person or a company that helps to sell the domain to the end-user. Suppose you have a great domain and you think the domain’s market price is $15000. But most of the buyers you are talking about are not willing to pay more than $7000. So what should you do now? Yes, you can hire a Domain Broker to sell your domain. It doesn’t mean that the broker will sell the domain at your asking price. Rather, the broker will do the market research, do the appraisal, and will try to sell the domain at current market price. Obviously the broker will take a small fraction of the selling price as service charge.

What Does A Domain Broker Do?

There are many misconceptions about what a domain name broker actually does. Remember, they are giving you service for money and they can only sell domains at fair market value. So, here are few things a domain broker will do for you:

  1. Research on your domain name
  2. Do the domain appraisal and find the fair market value for your domain
  3. Find and contact the potential buyer for your domain
  4. Negotiate the price for your domain
  5. Sell the domain to end user at fair market price

Should You Hire A Domain Broker For Appraising and Selling Your Domain?

Well, it depends. You may hire a domain broker if the domain has an excellent market value. Just think, would you hire a broker for a domain that has a market value of $500 & the broker service charge is $1000? Yes, that is commonsense. A broker will only give you the service if he/she things the hassle will worth his/her time. So, unless you have some great domains, don’t go for hiring.

If you want to learn more about Domain Name Broker or Domain Broker Service then here is a good blog post:

Conclusion:

Rule of the thumb for domain selling is to understand what people are looking for and compare with your domain name. One important thing you need to remember that buyers may come up with different prices and offers but the actual price depends on your willingness to sell at buyers asking price. So you have options to bargain. Don’t get disheartened if nobody is asking for your domain as it may happen because maybe at this moment people are not understanding the actual value of your domain or maybe the buyers are looking for something else.

Well, we have already discussed a lot about domain name appraisal, necessary factors, appraising tools, and domain marketplace. But if you are interested in domain business like domain buying and selling, then there are a lot more things that you should know. It’s not possible to discuss everything in one blog. So if you are interested please let me know.

Frequently Asked Questions

Is GoDaddy or Estibot domain appraisal accurate?

No automated appraisal tool can give you the exact price of your domain. Every appraisal tool has its own algorithm for calculating the price. While GoDaddy can be one of the biggest platforms with vast domain data, it is still an automated tool for appraisal. Same Goes Esitbot. Those appraisals can be close but nobody can claim that they are 100% accurate.
Truth About Automated Appraisal

Where can I sell my domain?

You can sell your domain in any domain marketplace. You can easily auction your domain at GoDaddy, Sedo, Flippa or Afternic. Nowadays, most of the well-known domain registrars offer a marketplace where you can enlist your domain name for sale.
Buying & Selling Domain Names

How can I sell my domain fast?

Selling a domain needs patience. Still, if you want to sell your domain fast then enlist your domain for sale in different domain marketplaces like-GoDaddy, Sedo, Flippa, etc. Put a price for your domain and wait for the buyer. You can easily put a beautiful website for your domain and build brand value. It will make selling faster because it will be easier to catch the buyer’s attention.
Domain Investing: Tips For Making Profit

How much is a domain name worth?

A domain name can worth two figures to seven figures depending on the quality of your domain name. Premium domains usually cost $4000 to $20000 while short domains can cost even more like millions. Actually a domain price is the highest amount a buyer is willing to offer for that domain.
Find True Value Of Your Domain

How do i evaluate my domain name?

Evaluating a domain name depends on a few factors and the answer depends on how do you want to evaluate your domain name. Automatic or crowd? For automatic evaluation, you can use domain evaluation or valuation tools or services and for crowd valuation, you can do a little searching for crowd valuation services.
Easy steps to evaluate your domain name

What are the Top Domain name Appraisal Services?

There are a few good Domain name Appraisal Services. like- GoDaddy, Sedo, Estibot, Free Valuator, etc. Here is a full list of top domain name appraisal services.
List of Top Domain Name Appraisal Services

What are the Best Free Domain Appraisal Tools?

There is no best tool out there. Each tool has its own strengths and weaknesses. Specially automated tools use their own algorithms. Here is a good list of top and best domain appraisal tools.
Best Domain Appraisal Tools

What is my domain worth?

A million Dollar Question. Your domain only worth’s as much as a buyer is willing to pay for your domain. But there are some tools that can give you an idea. Here is a list of tools to check or calculate your domain worth.
Tools to check your domain worth
7 Important factors that decide your domain’s worth

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