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Ultimate guide to determining the value of a domain name

Are you Looking for how to value a domain name that you own?

Or you want to buy a domain name but wondering how much to buy it? I have answered your question below.

The things that determine the value of a domain name are:

  • Age of the domain name
  • Domain name character length
  • Meaning
  • Traffic it is getting
  • Backlinks
  • Intended use
  • Keywordvalue
  • Top-level domain name(Domain extension)
  • Number of intented buyers
  • Value of similar domain names sold.

Here we are talking about a domain name that is already linked to a website or has been parked.

A parked domain name is the one that has been registered but not linked to any email or website.

If you are talking about the value of a domain name that has not been registered, you can get it at a very cheap price.

In fact, in some cases you may even get a new domain name for free. But normally, its price starts from $1-15.

Domain name value estimator

There are many Domain name value estimators but they don’t always give you the correct value of a domain name.

That’s because they are not real humans but they are still useful because they give an idea on how much your domain name should cost.

Let me explain why i said the domain name value estimators don’t always give accurate values.

Some most expensive domain names ever sold are:

Voice.com sold for $30 million.

Insurance.com sold for $35 million.

Privatejet.com sold for $30.1 million.

Internet.com sold for $18 million.

VacationRentals.com sold for $35 million.

To see more of most expensive domain names go to The top 25 expensive domain names.

Now pick any of these domain names and check their values with any of the most popular domain name value estimators below.

You will see that non of them will give you the accurate value of the above domain names.

But don’t get it wrong, these domain name value estimators are still useful as they will give you a starting point of how to know the value of a domain name, especially if it’s new.

A good domain name value estimator that is respected and recognized is Godaddy free domain value and appraisal tool

It tells you the value of the domain name and how much similar domain names were sold.

There are other good domain name value estimators like:

pc.domains

freevaluator

Estibot

Sedo

All the above services can help determine the value of your domain name, some for free some at a premium but you will notice that they may give you different values of your domain name.

That doesn’t mean they are not useful it is mostly because they use different methods of valuation.

So let us go deep in to the factors you should consider plus the domain name value estimators to know the actual value of your domain name.

Ultimate guide to determining the value of a domain name
How much to buy domain name, 
Know how to buy the domain name.
How much does it cost to buy domain name, answered. 
How to domain hosting.
How much is it to buy a domain name.
How to buy website domain.

Age of the domain name

The number of years that the domain name has been registered for will play a significant role in determining what is the value of a domain name.

A domain name that is 2 years will have more value than the one that is just registered or 3 months only.

Google usually recognizes and gives priority to domain names that are older.

Although its not much of a significant factor, especially if the domain name is not registered for long, the cost of the domain name renewal should also be considered.

Here is the reason why i said cost of renewal of a domain name is not too significant in determining the value of a domain name.

Some of the most expensive domain names ever sold are Las Vegas.com which costs $90 million, and carinsurance.com which costs $49.7 million.

Let us assume that the cost of renewal of these domain names is $50 and they were registered for 50 years before they were sold, each will cost $2,500.

So you can see that the intented usage and keyword, which i will discuss below played significant role in determining the value of these domain names.

Domain name character length

Since it is widely believed that shorter domain names have been taken( i don’t believe it, search boltrev.com you will see many available.com domain names with 6 to 7 characters) your domain name should not have more than 15 characters.

A Domain name with shorter characters is easy to remember, if you want to make it brandable, it shouldn’t be more than 3 words.

If your domain name has 4,5,6,or 7 characters, it should have value more than domain names with longer characters.

So you should add value to your domain name if it has short characters, and if you are buying, you should know that a domain name with shorter characters has higher domain name market value.

Domain name with meaning

It is not easy to have a domain name that has meaning, especially if you want to keep it short.

But if you manage to have a shorter domain name that has clear good meaning, that is a plus and its market value should be high.

As a buyer, if the domain has meaning and it is short, you should be ready to pay high price, especially if you are buying a parked domain name.

Ultimate guide to determining the value of a domain name
How much to buy domain name, 
Know how to buy the domain name.
How much does it cost to buy domain name, answered. 
How to domain hosting.
How much is it to buy a domain name.
How to buy website domain.

The traffic the domain name is getting

If a domain name is registered for long, there is usually an organic traffic that it will be getting.

The domain name will get higher traffic if it has been linked to a website.

An that is obviously a value added to the domain name which the buyer will enjoy.

Therefore, the traffic a domain name is generating should add value to it.

Backlinks of the domain name

The backlinks a domain name has will increase its value.

Imagine having a link from The New York Times, Huffpost, or Mashable, that will definitely increase the domain authority.

An the value of the domain name will also increase.

So if your domain name has backlinks from authority sites and you want to sell it, you should charge a very good price.

Intended use

What is the domain name going to be used for?

What region is the domain name being used or going to be used in?

Is it a domain name that will be used for global content or local content?

A domain name that is being used or going to be used in the USA, Canada, or UK will have more value than the one that is going to be used in Latin America, Asia or Africa.

Is the domain name for individual or corporate use?

A domain name that is likely to be used by a company or large business should have high value than the one that is for Individual use.

Keywords value of the domain name

If your domain name has a keyword with high value, it should have high price.

For example, a domain name that has Insurance, hosting, health, or finance is going to have more value than the one with words like music, comedy, film and so on.

So if your domain name has keywords with high value, it should cost higher.

Top-level domain name

A top level domain with .com extension is more preferred and valuable than other domain names.

Other domain names have value but a top level domain name is mostly preferred.

If you want to buy a domain name you should go for the one with .com extension.

Boltrev.com is always providing you with .com available domain names.

Ultimate guide to determining the value of a domain name
How much to buy domain name, 
Know how to buy the domain name.
How much does it cost to buy domain name, answered. 
How to domain hosting.
How much is it to buy a domain name.
How to buy website domain.

Number of intended buyers

If many individuals or companies want to buy your domain name, its an indication that you should increase its value.

Increasing its value will make fewer and more serious buyers approach to you.

Also as a buyer, if there are many people interested in buying the domain name you want to buy, then you should be ready to pay high price.

Value of similar domain name sold

The price at which a domain name similar to yours was sold should help you value your own domain name.

Godaddy’s domain value and appraisal tool will give you similar domain names that have been sold and their prices.

What you should look at are:

Does the similar domain name has the same extension with yours?

The number of characters, meaning, and intended use of the similar domain name.

Above are what you should consider when determining the value of your domain name. Or the domain name you want to buy.

However, if you can not do it yourself, you should seek the service of a domain name broker.

Conclusion

Above, you learned what you should consider to know how much to buy domain name.

If you owned a domain name, you have also learned how to value it.

Age of the domain name matters a lot, even Google gives priority to older domain names. A domain name with shorter characters has high value.

If a domain name has meaning, it’s value should increase, the traffic a domain name is getting should help determine its value.

Domain name with backlinks from high authority sites should have more value, the purpose of a domain name should help determine its value.

If a domain name has good keyword, with .com extension, it should have a good price. Number of individuals or Companies that want to buy the domain name and the price at which similar domain name was sold are good factors that affect the value of a domain name.

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Tell me what you think in the comment section.

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