Did you know that some domain names are worth thousands or even millions of euros? Estimating the value of a domain name you own or want to buy is important if you are launching on the web.
Do you have a shortlist of domain names to buy that aren’t directly available? Want to sell a domain name you’ve owned for years?
Take the time to estimate a domain name’s value to avoid buying it for more than it’s worth or selling it at a loss!
But how do you best estimate a domain name’s price? We’ll tell you everything!
Preamble to valuing a domain name
First of all, you need to understand the components of a domain name.
- The SLD (second-level domain) which most often contains the name of the website or the owning company.
- The extension or the TLD (top-level domain) which comes at the end of the domain name. These are .com, .net, .fr, .gouv, etc.
Also read : .fr, .com, .tech… How do you choose your domain name extension?
Techniques for estimating a domain name's value
Now that you understand how a domain name is composed, it’s time to analyze the factors that influence its value.
1. Check the extension's popularity
The TLD is the first attractive element in a domain name. In general, the most sought-after remain those in .com. Why? It’s more recognizable and more common among internet users. In addition, it addresses an international market, unlike local extensions (.fr, .be, .ch, .lu, etc.).
The extensions .org, .pro, .biz or even .net are specific and can reduce the value of the domain name. It will depend on the target market and the competition.
2. Meaning and language of the domain name
Does the domain name correspond to something? A common noun often has more value than an "invented" word or name simply because it corresponds to a real SEO keyword that users are already typing and searching for.
"Exact match" domain names therefore have a significantly higher value than domain names that do not necessarily correspond to a real word.
Domain names that correspond to English words are even more valuable because they have international reach. The estimate of a domain name can quickly skyrocket with a short English word that ends in .com!
3. Analyze the domain's traffic
The level of traffic a site receives is an essential factor in estimating its value. The reason is simple: if the domain is associated with an existing audience, the buyer can immediately profit from that traffic for their business.
PageRank and backlinks are also criteria to evaluate. If the site remains indexed by Google with a significant ranking and high-quality incoming links, its value is greater.
Also read:
4. Assess the relevance of the keywords
Including the right keywords in your domain name represents another crucial aspect of SEO.
For example, if the top-ranked website for the query 'hotel' is www.hotels.com, then this domain name has even more value. When the combination of search volume / exact match / short keyword / popular TLD align, the domain's value increases considerably.
Also read: SEO: How to find relevant keywords?
5. Check the URL's spelling
It may seem obvious, but a correctly spelled domain name is more valuable than a URL containing a mistake. The risk is that you will appear unprofessional, even shady, to your audience. In that case, you may never recoup your purchase.
At the same time, using unexpected spelling can sometimes be an advantage. It can make the domain easier to remember and more authentic. Tumblr.com is a perfect example.
6. Pay attention to the domain name's length
The shorter a domain name is, the more it attracts buyers. Why? A concise domain name is rare and therefore more valuable. It remains easy to remember and to share, which is good for SEO.
7. Check the domain's age
The domain's age refers to its creation date. If the domain has been active for several years, it has gained some recognition with Google. It is often ranked higher than its younger competitors.
Conversely, a recent domain or an older domain with a history that doesn't match the site's future activity can lower the domain's valuation.
A domain with a history may have many negative backlinks, which can reduce its value.
8. Search for similar sold domains
To know what your domain is worth, you need to know what others charge for similar domains. One certainty: its value changes over time!
At this stage, you should check the sale prices of domain names similar to yours.
Several sites collect this information to guide you in your purchase (or sale): DN Journal, Domain Name Wire or ShortNames.
9. Use a valuation service
A domain name valuation service allows you to estimate its value in a few clicks. This type of tool analyzes all the factors described above (extension, age, keyword, length…) to provide you with the most accurate estimate.
It's one of the simplest methods to obtain an informed answer about the value of your domain name.
Among these tools you will find: Estibot, GoDaddy or SitePrice.
10. Check what buyers are willing to pay
Doing research and using valuation tools gives you an idea of the price to charge. However, is there demand for your domain? Are potential buyers willing to purchase it at the estimated price?
The higher the demand, the more your domain's value increases… and vice versa!
The best way to find out is to put your domain up for sale via an auction system. You can set a reserve price and see if bids come in.
Do you have a short domain name with the right keywords, that is popular and aged? You likely have a gold mine. But before listing it for sale, take the time to evaluate it and analyze the market. Likewise, if you want to buy a URL, don't rush in without performing all the usual checks.
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