Ultimately, domain price is whatever the buyer is willing to pay, but there is a difference between knowing if your domain is worth a few bucks or a few million dollars.
There is this stubborn friend I have (bless his heart . . . Hello, Keith ) who thinks that he is sitting on a million-dollar domain & is unwilling to give it up, even when he received good offers.
The first thing I want you to do is determine what recent domain sales have been for others. You can do that in several ways, but a good place to start is www.dnjournal.com
are good indications that you have a valuable domain:
(Hint: these are the benefits you will tell your potential buyer about to make them appreciate the domain they are about to purchase.)
- Good Top Level Domain
There are a lot of domain extensions but nothing beats .com. If you have a GOOD top level domain, it’s an added value.
This is not to say that .net, .us, etc. are not valuable, just not as much as .com.
- Short Length
The shorter the domain, the more expensive it is. Why? Because barely any of them are left. Why do you think xxx.com is so valuable?
The shorter your
domain, the more valuable it becomes, not always but usually.
- Passes the “Radio” Test
How easy is it to pronounce your domain name? If you yell the domain name across the room, will people understand what you just said?
- Correct Spelling
This pretty much means that domain is more valuable if it uses correct spelling vs one that doesn’t.
- Meaningful Keywords
Does your domain name include meaningful keywords? Does it mean something useful? Or is it just random stuff that you put together?
Does your domain have the ability to be used by a publicly-traded company? Can it be branded into something that the consumer will love?
If your domain was registered last year vs 10 years ago, the older domain might be worth more because of its age. Not always but it could be with the combination of other factors.
Does your domain already have existing traffic coming to it? That means it already has an audience. It will make your domain worth even more if it has the type of audience that the buyer will appreciate.
Tools that can help you determine the value
- Appraisal Services
There are multiple appraisal services online that will let you estimate the value of the domain, but keep in mind that it’s normally NOT completely accurate but you can get a good feel for it.
Estibot.com is a good website to see the valuation of your domain but, again, keep in mind that it’s not 100% accurate.
- Google Trends
Google Trends lets you see what other people are searching for on the web. Go to trends.google.com & put in your domain keyword.
This will let you know if the keyword used on your domain has searches, which could be useful in terms of branding & sometimes SEO.
These days SEO has nothing to do with domain keyword, so don’t get excited if you have an exact match, but it is a little easier to rank if your domain contains the keyword. That’s why it could be worth more.
- Google AdWords Keyword Planner
Google AdWords Keyword planner is a tool used by marketers to find out how much people are paying for a keyword to rank it on top of Google via AdWords.
If CPC (Cost Per Click) is very high, then it might make sense for a marketer to buy your domain & attempt to rank it on Google so they can spend less.
All the things we talked about above are “BENEFITS” . . . reasons why a buyer should purchase a domain. Whenever you are offering your domain for sale, it might be wise to mention these positive aspects of your domain.