Last Updated: April 15, 2022
Did you know that certain domains can be sold for a hefty sum? You can also purchase an already existing domain name or create one yourself. By creating a domain, you are its sole owner and can, therefore, sell it to any potential buyers. But how much is my domain worth? This article addresses how a domain appraisal works, what affects it, and how its value is estimated.
How Does Domain Name Valuation Work?
Domain appraisal can be a lucrative business strategy. Through domain appraisal, you evaluate how much your URL is worth, both for buying and selling purposes, which can increase by seven figures for some URLs, depending on some factors.
But first, what is a domain name? Domain names (or URLs) are what you would type into your internet browser address bar, e.g., Facebook.com or Review42.com. Domain names consist of a top-level domain (TLD) and a second-level domain:
- Top-level domains are the domain name extension that comes at the end of the URL, after the second-level domain, e.g.—.com, .co, .net, .org
- Second-level domains are the letters and numbers that mark your website’s name and are placed before TLDs, e.g.—.com or .net. So, in www.review42.com, the second-level domain is Review42.
|NOTE: Domain worth depends on the TLDs used. Certain TLDs go for a higher price than others. There isn’t a set rule as to how much you pay or the price of your domain. Check out the best domain name registrars and find out how much your plan will cost you.|
What Does Domain Name Value Depend on?
What is a domain name worth? Your domain’s value depends on a slew of aspects, most of which connect to the physical composition of your URL. If you want to create a domain that can potentially sell for thousands of dollars, consider these six points:
Top-Level Domain (TLD)
Domain name valuation starts with TLDs. A top-level domain is the domain name extension that comes at the end and is attached to the root domain, which includes, for example, .com, .net, .co, .org. An increasing number of TLDs are entering the domain world, determining the value of your domain. Always stick to a more popular TLD, such as:
- .com and .net for all purposes.
- .co or .co.uk for startups and companies.
- .org for online causes.
Another aspect of domain name worth are the keywords used. Through Google Trends, you can see which popular keyword comes up at a given time, as well as how many searches a keyword has. So you know what words you can incorporate in your domain for maximum clickability and added value.
The valuation of domain names also depends on the length of your domain name. The rule is simple: Keep It Short (KISS). Shorter domains are understandably easier to remember and, consequently, are more recognizable. But the most catchy ones are typically already registered, especially with LTDs, such as .com.
Another aspect that adds immense value to a domain—especially already registered ones—is if the website already has existing traffic. In addition to existing traffic, websites that have monetization turned on can generate even higher value.
Memorability & Uniqueness
Another added aspect to the valuation of domain names is the level of memorability and uniqueness of your domain name. Not only does it add value, but it also opens possibilities of quickly building a brand upon the domain’s name. Again, the shorter and catchier the domain, the more memorable it will be. (Check out this guide on how to choose a domain name for your business that will stick.)
Backlinks also build up the resale value of domain names. They hold excellent SEO power and convey a sense of connection between sites. If other sites link to your website, your website must be trustworthy and will most likely get many hits.
|NOTE: URLs that have been around for longer tend to have a higher value than those with fewer years of online presence, as they might gather more attention over the years and gain traffic. So if you want to have increased domain name values—instead of buying a domain—create a domain from scratch and wait—just enough to test the waters. (Check out the best website builders and create the perfect website today.)|
|Domain names (or URLs) are the letters you type into your internet browser address bar and consist of a top-level domain (TLD) and a second-level domain.|
|Through domain appraisal, you’re evaluating how much your URL is worth, both for buying and selling purposes.|
|How much is my domain worth? The value of domains depends on the TLD, a popular keyword used, length and uniqueness of domain, existing traffic, and backlinks.|
|In addition to existing traffic, if a domain has monetization turned on, then the value increases.|
How to Estimate Domain Value
There are many ways to determine your domain’s value before listing it for sale or deciding to purchase a domain. It’s wise to gain insight into how much similar domains are valued and make sure you’re not scammed into overpaying or underselling.
Research Value of Similar Domains
The most straightforward way to estimate a domain name value is to do some research. Do a quick scan of similarly named domains and how much they’ve been sold for. Then, consider all of the above-mentioned value markers, such as TLDs, length, popular keywords, and uniqueness of the domain.
Register Domain on the Market
Another option is to estimate the value through domain marketplaces. Domain marketplaces are platforms that offer users a place to sell and purchase domains. By registering your domain on such a marketplace, you can estimate domain value by comparing offers made on your domain.
Some of the most popular domain marketplaces include Godaddy Auction, Flippa Marketplace, Sedo Marketplace, and NamePros Forum.
Use Domain Appraisal Sites
Domain appraisal websites are a great quick fix to all of your domain value-related questions. Most appraisal sites offer a free basic service, in addition to paid monthly memberships that provide more in-depth explanations and stats. Some of the best domain appraisal websites include:
How much is a domain name worth? Estibot is an excellent free option for anyone looking to get their domain appraised quickly and easily. it offers three plans: $29.00/mo, $49.00/mo, and $99.00/mo. Estibot covers all the aspects mentioned above and uses them to determine the value of your website. It looks at the keywords used, how they are optimized, and how clickable they are.
Through Estibot, you get access to graphs and details on how your domain will perform compared to similar already existing domains, which gives you a general idea on valuing domain names. If you do decide to eventually sell your domain, Estibot has a marketplace for this. You can also find already existing buyers that flock to the website and are familiar with the system.
In addition to the appraisal tool, Estibot offers a free lead generator tool. This tool sorts out all of the domains similar to yours and then lists interested buyers or those who bought a domain similar to yours, so you know who to contact.
Another helper in valuing domain names is the appraisal website dotDB, which offers a much more detailed look at domain analysis than Estibot. dotDB has three plans, one of which is free to use. The other two are on the pricier side at $34.99/mo and $69.99/mo. But with the free plan, you get more than enough options, such as data updates, unlimited searches, and positional matches.
With dotDB, you can search by keywords and determine how many extensions your desired second-level domain is registered under. In addition, it lists all the other domains that already have that specific keyword (in addition to different keywords), so you can compare how much money similar domains go for. This helps create leads on domain name values and is an excellent way to see if the keyword you plan on using is popular. The more domains listed, the more sought-after the name of the domain is.
NameBio offers users a free look into domain name sales, to compare the information on hand themselves. According to NameBio, their website has been up and running since 2006 and gets around 15,000 clicks per day, making it one of the most reliable free tools for domain appraisal. NameBio offers three plans (in addition to its free search database): $10.00/mo, $25.00/mo, and $100.00/mo. In addition, you can fully explore all resale values of domain names.
Namebio’s database is updated regularly each day with new data and showcases only the domains that have been sold with a minimum price tag of $100.00. With NameBio, you can quickly get information on how much similar domains to your own have been sold for, as well as look at other features that make for a good domain. In this way, you can learn how to make money with domain names in no time.
NameBio’s search parameters include popular keywords, keyword placement, extensions, price range, patterns of letters or numbers, date sold, and length of domains.
|NOTE: Domain flipping is the act of buying an already created domain for a low price and then—without making significant adjustments to it—sell it to potential buyers for a more substantial sum than what you paid for.|
A good domain can bring in a lot of profit, especially if you play your cards right. But how do you come up with valuable domain names or know when you’ve hit the jackpot if attempting domain flipping? First, always make sure the domain checks all of the following boxes:
- Has a commonly used TLD
- Uses a popular keyword
- Is short and unique
- Has existing traffic and backlinks
The highest payment made for a domain name was $345 million for Business.com, topping the most valuable domain names. The domain was first bought in 1999 for $7.5 million and resold years later to RH Donnelley.
A domain name that is short, catchy, has a lot of traffic, and is memorable can sell for $5,000 to $20,000. But certain domains that are versatile enough to cover multiple categories of business can go for over $100,000.
Many factors decide your domain worth. The most significant ones include the length of the domain, the top-level domain (TLD) used, a popular keyword used in the second-level domain, the already existing traffic, how memorable and unique the name is, and if the domain has any backlinks leading to it.
How much is my domain worth is a common question asked. First, register your domain on a marketplace, then conduct simple research into how similar sites are priced or use appraisal websites.