Valuing a Domain Name the Right Way

Before selling your real property or home, it’s best to first have it valuated in order to know its actual worth and avoid selling it for less. The same logic applies if and when the time comes to sell your domain name. Also, if you are looking to buy a domain name or are bidding for one, there’s no harm in first getting a ballpark estimate of its worth before paying money for it. But you should always remember that the true value of a domain name actually lies in how much money any buyer is willing to pay in exchange for it.

But in an instance where your domain is up for sale and you ask for an exorbitant price that far exceeds its actual value and you find a buyer who is willing to actually pay that price for it, such a price will not be regarded as the domain’s actual value. Such a price is instead what you would simply like to receive in exchange for that domain.

When most people want to sell their domain name, their first move is usually to visit an appraisal site to determine the worth of their domain. There are various sites available that are capable of providing you a fairly accurate estimate of the worth of your website. Best practice dictates that you get an appraisal report from multiple online platforms in order to get various opinions concerning the true value of the website. This will give you a better idea of what you can get in exchange in for selling your website. Some free appraisal websites who offer usable results include;, Valuate, and URL Appraisal.

Keep in mind that appraisals done by these sites are mostly guesses based on certain factors and analytics performed on your site. There is no guarantee that you will be able to sell a domain for the price that you see listed on an appraisal site. While it might be tempting to go with the results from the website with the highest appraisal figure, it is actually not the best way to conclude on your domain’s value. This is because while you are carrying out your own appraisal, potential buyers are also using these same sites to perform an appraisal and are likely to go for the lowest estimated value they can find.

What increases the value of a domain?

You could register a domain with a platform like Umbrellar Cloud Backup and groom it into a valuable one. Most buyers looking to buy a domain name are often looking for one that is already successful and whose success they can easily leverage in their favour. The success of a domain name is usually determined by looking at the amount of traffic it receives and number of customers who use it

If a website already seems to be a successful one, even if someone else buys and takes control over it, there is a high chance most of its old visitors will remain on it even after it has been sold.

When looking to purchase a domain, some of the factors you should focus on to determine its value include;

  • The domain name’s length

The number of words used in creating a domain name plays a key role in determining the value. What is usually seen is, the shorter the length of a domain name, the higher its worth.

  • The age of the domain name

How long a domain name has been active is another key factor that affects its worth. The older a domain is and the longer it has been used online, the more likely it is to rank highly on a search engine result. Due to this better ranking, an older domain name usually has a higher value than a recently created one which probably is still lowly ranked on search engine results. But keep in mind that most of the old websites are not for sale as their owners often find them too profitable to sell. You might need to offer such a website owner more money to sweeten the deal and convince them to sell.

  • The spelling of the domain name and the nature of the word

Domain names that mainly consist of a common word or words which might be found in the dictionary and have a common spelling that can be easily remembered and typed is likely to cost more.

  • Domain extension

The extension that usually attaches the most value to a domain name is the .com extension. This is due to the fact that it is the most common and is what most internet users assume to be a website’s prefix. It is also what most browsers default to. Thus, a domain name with the .com extension will cost more than a similar domain with a different extension. For example will likely have a higher value than

How to improve a domain name’s value?

  • Add more content to your website. More content on your site means you’ll have more pages for people to visit and this can contribute effectively to boosting the website’s search engine ranking.
  • Boost the SEO of your website – The more customers your website has, the higher its value. And one sure way to boost your traffic is to ensure customers can easily find it on search engine results.
  • Effectively market your website. Let the right audience around the world know about your website and you can accomplish this with the use of social media

But there are other aspects of your website that you likely cannot influence to improve your domain’s value. Such aspects include;

  • Domain age: An older domain tends to have a higher value. But there’s really nothing you can do to influence the age of your domain. All you can do is simply wait for time to take its course. But you can ensure that your domain doesn’t turn into an old and worthless one by effectively maintaining it and adding content to the site.
  • Domain usability: A domain with a hard to spell or remember name usually has less value, and there’s nothing you can do to fix it. Only option is to create a better domain with a better name.
  • Domain extension: You can’t change a domain extension after registration.

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