What Is Your Domain Name Worth?

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If you plan to assess the value of your domain name, you’ll find services, some free and others for a fee, offered by many companies. Although it is certainly worth looking at the current domain name market and trying to find equivalence with recent sales, it’s impossible to base the valuation of one domain name on the valuation placed on another. Ultimately, a domain name is worth what a buyer is willing to pay for it and no more.

Go with one of the free services if you insist on having your domain name appraised. Paid appraisal services, costing as much as $50, could cost you more than the domain name itself is worth. Also, bear in mind that few paid appraisal services are going to tell you that your domain name is worthless, since that would guarantee that they would lose the chance of any repeat business from you.

Use these guidelines to help you understand the prospective value of your domain name.

1- If you receive unsolicited offers to buy the name, that clearly shows it’s worth something to somebody.

2- If the domain name is a .com, it will have 5-10x or more the value of the same name with any other extension.

3- The length of the domain name may be relevant. Normally, the shorter the better.

4- Is your domain name hyphenated? Sometimes, hyphens help to maintain clarity, but generally they reduce the value of a domain name.

5- If the domain name is a misspelled word, you can knock 99% or more off the price.

6- If the domain name uses prefixes or suffixes, it can REALLY hurt the value.

7- The number of words in the domain and how common the words are can make a difference. Typically, the more words in the domain name, the less it is worth.

The entire process of trying to establish a value for your domain name may leave you feeling frustrated, but don’t give up. Without at least an sense of the value, you’re going to find it much harder to locate a buyer for the name and close a deal.