What's My Domain Worth? How to Value Your Domain Name

Bruno Mircevski

Written by Web Hosting Expert

What's My Domain Worth? How to Value Your Domain Name

There are many ways you can profit from buying and selling domain names. You can engage in domain parking, domain flipping, etc., and earn a lot of money along the way. However, all of these processes require knowing how much a domain name is actually worth.

So, today we will dive into how you can value your domain name, what makes a domain name valuable, and see which are the best domain appraisal services.

Someone Reached Out to You Asking to Buy Your Domain Name. What Should You Do?


If someone reaches out to you and asks to buy your domain name, you need to make sure to not rush into anything and do your due diligence before taking any action. You will have plenty of time to research the buyer before the sale occurs.

So, when looking into the buyer, you need to determine whether they are capable of buying your domain and whether they are serious about the purchase. After qualifying the buyer, there are two things you can do to proceed:

- State the price for your domain
- Ask the buyer to make an offer

The approach you take is up to you and depends on your individual situation and the circumstances of the deal. If a buyer contacts you unexpectedly and you haven't listed the domain for sale, it's reasonable to ask them to state their offer.
However, if you were the one that listed the domain for sale, it could be more beneficial for you to be the one that quotes a price.

What Makes a Domain Name Valuable?


Many factors contribute to the value of a domain name. When accessing your domain's worth, it would be best to include as many different factors in your analysis as possible to get the most accurate results and value your domain appropriately.

Here are some of the factors that make domain names more valuable:

Name and length

the shorter your domain name is, the more valuable it will be. Also, the domain name should be clear and sensible and not a mix of random letters. Additionally, you should avoid using cryptic names and make sure that the name you choose is not trademarked and is available. You can check if a domain name is available by typing it into your domain registrar

Linguistic aspects

The main term you use also affects value. Using nouns as your main keyword is the most favorable compared to adjectives, verbs, etc. Also, using characters, numbers, and words that are not relevant to your website reduces your domain's value. So, try to stick to only words, preferably nouns, and avoid including numbers in your domain name

Spelling

Domain names that use common words, i.e., common terms and are easy to spell and remember, are pretty popular and thus more valuable

Domain extension

Oout of all domain extensions that exist, the top-level domains or TLDs are the ones that are most valuable. There are over 1500 TLDs in use today, and the top five ones that are most popular and sought after are:

Backlinks

The value of a domain can be influenced by the type of content it's connected to. For example, websites that have content with numerous backlinks have a positive effect on SEO, which in turn improves the ranking of the website on search engines, which makes the domain more attractive. Moreover, long content gets over 77% more backlinks than short content, so if you produce long content on your website and have many backlinks, the value of your website will go up

Traffic

If your website generates a lot of website traffic currently, your domain's value will be higher because your domain already has an audience that the buyer can use to his advantage. Also, over 40% of revenue generation is caused by organic traffic across multiple industries, and this is something that is attractive to all buyers

Domain age

Refers to the date on which you registered your domain and how much time has passed up to the date of sale. If your domain is older and has been active for some time, it will have a higher value. Of course, the domain has to be maintained; otherwise, leaving a domain name up for years with no content on it will decrease its value because there is nothing for customers to see on that domain

Used keywords

The keywords you use in your domain name are crucial for domain value. The more appropriate and desirable the keyword is, the more your domain's value will increase. So, make sure to use keywords that are clear and relevant to the industry you are in. Also, the more familiar the keyword is to users, the more desirable it will be to buyers

Brand-friendliness

Domains with short, unique, and memorable names that have been around for some time and have their own traffic are considered to have intrinsic commercial potential, which can significantly increase the value of those domains

How to Determine the Value of a Domain Name?


1. Research the market and check prices for similar domain names

This can help you get a real-time sense of what domains in your industry sell for and how many similar domains are for sale. This will also help you understand the demand and supply, which can also help you decide whether you should sell your domain now or later if the supply is high and demand is low. Additionally, you can see the prices that sellers set for their domains and whether buyers are willing to buy at those or at lower prices. You can visit sites like the DN Journal or Domain Name Wire to keep track of recent domain sales

DN Journal main page screenshot

2. Directly reach out to potential clients

If you're unsure whether it's the right time to sell your domain, you can always get in touch with clients in your industry and ask them what they would pay for your domain to see whether it's worth selling it. They don't have to be necessarily interested in buying your domain, but if enough of your industry peers give you a price, you can use them to estimate the average price that you can potentially get for your domain without having to sell it just yet

3. Appraisal services

There are many appraisal services you can use to estimate the value of your domain. To get a clear view of the money you can make from selling your domain, we recommend getting your domain appraised by several services to determine whether there is a lot of variation from one appraisal to the next. Of course, you have to be objective and consider all appraisal values and not just the appraisal that gives you the highest value because buyers can use appraisal sites the same way as you can and get appraisals from more places. One free appraisal site you can use is EstiBot

EstiBot main page screenshot

4. Do a trial listing

This may sound risky, especially if you don't want to sell your domain just yet, but this approach will give you the best and most accurate values for your domain. There are many sites that allow you to list your domain for free and look at offers without any commitment and without charging you any fees, like Sedo. You have to give your listings some time to make this approach work. You might first receive offers that are too low, and if you don't wait for more potential buyers to discover your domain name in the marketplace, you may arrive at an incorrect and lower price, which can cause you to miss out on the actual profit you can make. So, if you use this approach, don't rush and be patient

Sedo.com main page screenshot

Best Domain Appraisal Services


- Domain Price Checker

Offers a free Basic Pack that allows 15 queries per month and ten queries per month via Bulk. It provides unbiased price information, uses a database of 26 million domain sales, and does appraisals via an AI algorithm that is trained regularly

domain price checker

- Sedo

Aside from enabling users to sell domains, Sedo also allows users to evaluate them. Sedo charges buyers and sellers when they want to assess domains, and the results are sent by email not more than five days after payment is received. Sedo performs valuations based on ten criteria, like search engine suitability, advertising impact of the domain, etc.

sedo

- Epik

This appraisal service offers both free and paid appraisals, but the free one does not offer a complete professional appraisal. Epik conducts valuations based on sales of similar domains, analyses search data and language that the website uses, uses data from the Wayback Machine in its appraisals, etc.

epik

Final Remarks


Knowing how much your domain is worth is essential if you want to sell your domain and maximize the profit you make from that sale. However, it's vital to be patient and wait for the right time to sell your domain. Of course, don't be afraid to put your domain out there because as far as your domain goes, it could turn out to be the most expensive domain, but you just don't know it yet.

Frequently Asked Questions

What is a domain name?

Every single website has a domain name, and the domain name is the actual name of the website. You need to purchase one from a domain registrar.

Is selling domain names for profit legal?

Yes, selling domain names for profit is perfectly legal. What’s not legal is purchasing a domain name that incorporates a trademarked name with the intention of getting profit from the reputation of the trademarked entity.

What is the difference between web hosting and domain?

Web hosting and domain are two different things, even though they are closely related. A domain is the address of your website, while web hosting is where your site files are physically stored.

If I move my site to Verpex do I need to change domain name?

No, we make the transfer process easy and you can keep your current domain name.

Bruno Mircevski
About the Author
Bruno Mircevski

Bruno Mircevski is a web hosting services expert. He has spent years researching the niche, exploring the most diverse aspects of Shared, VPS, WordPress, Cloud Hosting, Dedicated Servers, Resellers, etc. With his extensive knowledge and experience, he can grant you meaningful insights on our blog, whether you are a beginner or a hosting pro.

View all posts by Bruno Mircevski
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