How to Calculate Domain Name’s Value OR How to Appraise a Domain Name

Companies are paying thousands of dollars for a valuable domain name which is highly relevant to their business and company name.


The worth, price, or value of a domain name can scope anywhere from a couple of dollars to millions of dollars. A domain could be the name of the next start-up or brand. The real challenge is How You Can Calculate The Value Of A Domain Name? OR how to appraise a domain name? Domain names play an important role in the success of an online business. In the past, some companies paid thousands of dollars for a domain name which is highly relevant to their business and company name. In this article, we will discuss the importance of domain valuation.

There are a couple of important things and true techniques for appraising a domain name, you should look at when trying to evaluate and it includes:

1- The length of the domain, the shorter the domain is, the more it will cost. Because when a domain name is short, it is easy to spell, remember, and descriptive or brandable. Your domain should not contain hyphens and numbers and for me, it should be with the .com extension.

2- One, two or three-word domain names are much valuable than the others (Nowadays, it is impossible to find a three-word domain name with .com or .net extension). So, domains with very few words value the most.

3- Websites that have been around for a long time in the search engines rank better, and so this increases their value. However, most sites that have been around for a long time aren’t for sale, so convincing the owner might take even more money.

4- If we collect information from the start (August 6, 1991, the first website went online) then most commonly, the oldest and popular domain name had 7 or 8 characters and 2 words. Now, approx. 85% domain names having .com extension. Remain percentage having .net, .org, .biz and specific extension related to country names. Three to seven percent contain number or dash with their domain names. So, for me .com extension worth more than others.

5- If the domain names that are difficult to spell, have non-alphabetic characters, are extremely long, or difficult to type in are not going to be worth more as compared easy to spell and easy to type domain names. Moreover, if you have already purchased a domain name with the extension or top-level domain (TLD) like .com, .net, .org, etc. can’t be changed once you own the domain.

Top Level Domain (TLD) - How To Calculate Domain Name’s Value

What can we do to improve the domain’s value?

Domain names were discovered to make it easier for people to access websites, so it’s important that your domain is easily understandable.

1- Does the domain name sounds good?

2- Will people know how to spell it after hearing it?

3- Is it easy to remember?

Any confusion that your domain causes will negatively impact how much others are willing to shell out.

Now, the most important thing is, what we can do to improve the domain value is the same as what you do to improve your website’s value right now before you sell the domain. It is compulsory, get more customers visiting your website. The more popular your site is, the more valuable the domain will become.

Definitely, if users or customers are eligible to find the website in search (Google, Bing, and Yahoo) there will be more visitors so, improve the website’s SEO. For search engine optimization (SEO) you can find a different solution like on-page and off-page SEO. Increase the content as well, the more content you have on your website the more pages there are for people to visit. Nowadays, social media is one of the solid sources to get more traffic to your website. Write more and more blogs or articles, for this purpose, find the guest blogging websites and spread your thoughts or products around the world but one thing you should keep in mind, it’s important that your words are easily understandable.

If you are looking for a fixed formula to calculate the domain name’s value exactly then, unfortunately, you are out of luck. Appraisal services can agitate out a number based on a complex set of criteria, but there is much more to domain names than algorithms and search rankings. A domain exists in the wider context of the online and offline worlds and all of their complexities and refinement will play a part in how much interest there will be in your domain.

Wondering how to value domain names?

There are a couple of rules about what makes a domain more valuable. Most people who are looking to buy a domain want to buy one that is already successful and most people on the web define success on page views and customers. To calculate the domain name’s value, you eventually need to understand who your prospective customer is;

1- From which industry they are belonging?

2- Is a website important for their business?

3- How applicable is your domain?

A domain is only as valuable as someone is willing to pay for it, so knowing what related domains are priced at, how sought after your domain is, and how much too reasonably expect a buyer to pay will help you arrive at the right number.

In spite of all that details, if you still want to estimate domain or website worth then online valuation tools can help you to determine the worth of your domain name. The commonly used domain name valuation tools are While no online tool or method can generate an exact value for a website or a domain name, these tools can assist by providing an estimated worth. use the same appraising algorithm, which is based primarily on keyword metrics including previous sales data, cost per click data, and a value based on website performance indexes such as Alexa traffic rank, backlinks, and Google Page Rank.

To sum up, we can say that the actual worth of a domain name or website is what it has inside and what the market will bear, how much is important to you or what someone is amenable to pay. Everything else is absolutely an estimate.

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