Domain Value

As of now, there’re more than 500 million domains registered and the number is going up day by day. There it is, the domain name you’d love to own for your business. It is for sale! And you do not have any idea about the value of it. What are you going to do about it? Here are some useful suggestions.

Domain Value


Make some research about the domain name you’d like to own.

Is it a one-word domain name or, 2 words, maybe 3 words? – There’s an inverse correlation between the length and the value of the domain names. Usually, when the domain gets longer (Keyword-wise and/or length-wise), prices go down.

Is it a dictionary word or a made-up word? Dictionary words are the most valuable words in the domain market. Demand is high and supply is very limited. On the other side, made-up words are almost unlimited. However, it must be noted that there’re lots of valuable made-up domains out there as well. 

Does it have a common extension like .com, .net, .org or, does it have a relatively new extension such as .link, .city or, etc? .COM is the most commercial extension in the world and it’s not going to change anytime soon.

What’s the total market cap of your business? Are you going to sell pens or cars? Or maybe glasses? The domain value will be affected by the market you’re in or you’re planning to be in.

What is the search volume of the keyword/keywords of the domain name? There’ll be a huge value difference between a keyword/keywords that get 100-1000 search numbers a month and a keyword/keywords that get 100,000 – 1,000.000 searches a month.

What about the trends of the keyword/keywords and the market in general? Ringtone related domains are almost worthless right now. However, they changed hands for hundreds of thousands of Dollars 10-15 years ago. Because they’re not trendy anymore.

Are there any similar domains for sale out there? If so, what are their prices? Try to make a comparison and find a way to approach the value.

Domain Appraisal

A Domain Appraisal will use all the things mentioned above and add many more to determine a fair value for the domain name. Plus, an extensive experience will be added to it. That’s priceless. Try to find a trusted domain appraisal and make sure to find an appraisal that’s not automated. These kinds of appraisals will give you lots of knowledge about the domain value and next time, you’ll know what to consider when it comes to the price.

Some appraisals value domains within two different prices and with price ranges instead of a single price. Price range output will give you room in negotiations and you might even buy the domain lower than the end-user or retail price value. If you’re getting into the domain business, it’s very important to have an idea about the retail values of the domains in order to make a profit in the business.

Domain appraisal prices are no brainer. Once you have a decent domain appraisal with documentation, you’ll know the value of the domain name and you’ll not overpay for it.

Domain Brokerage

If you aren’t familiar with domains, appraisals or, simply, if you don’t have time for any of these, consider hiring a domain broker. Domains brokers have extensive knowledge and experience from A to Z when it comes to the domains. They’ll do all the necessary work for you and negotiate on your behalf to buy the domain/domains based on your budget. Domain broker commission rates are mostly between 10%-20%.