How to Appraise Your Website Domain: Click Here
Last updated on 2021/5/9
So, you either currently have a website or are considering investing in one. You are not really sure what to do with it. You can invest in domain names, but you must be careful and understand what you are doing. Some experts have compared investing in domain names similar to investing in real estate. You have to do some research about your current domain or the ones you are interested in buying. Before you go any further, read this article to find out more about domains and how to appraise your website domain.
What is a Website Domain?
Before you even begin to think about how to appraise your website domain, you should make sure you understand the details of a domain name. Simply put, a domain name is the same thing as your website name. This is the address where people can go online to access your website. Domain names can also be used to find computers on the internet. All computers use IP addresses, which are usually really long numbers. Since it is difficult to remember a long string of numbers, domain names were created. They are used to identify entities online instead of having to use IP addresses. These names can be a combination of numbers and letters. The names are also used with various different name extensions, such as but not limited to .com, .org, .net, and .edu. You are not able to use your domain name until you register it. There are no two domain names that are the same, each one is unique, just like every website name is unique.
The first part of your domain name is referred to as the second level domain (SLD) and that is the part before the dot. It usually gives you the name of the website or the business that owns the domain. The end of the domain, the part that starts with the dot, is known as the top level domain (TLD).
Why Would I Want To Invest In A Domain?
Believe it, or not, domains can be valuable and range from dollars to thousands of dollars. I compared it earlier to investing in real estate. That is essentially what it is, online real estate. Now, you are not going to get the same value out of a domain as you would a house, but you can make a significant amount of money on selling a domain. You have to understand what you are doing with domain names if you want to get in the business of buying and selling them. A domain name is like most things, it is only worth as much as someone is willing to pay for it. If you cannot get someone to buy your domain name then it really is not worth anything.
How to Appraise Your Website Domain
If you want to determine how much money you can make on a domain, you have to appraise your website domain first. This is a process called domain valuation, or domain appraisal. Many different factors go into determining the price of a domain. Some of these items include trends, length, and spelling. These are just a few factors. I will go into detail about them a little further down in this article. Do not get caught up in the reports you hear of people selling domain names for hundreds of thousands of dollars. It can happen, but those domain names tend to be specific to a particular business.
Research Similar Domains
When you want to appraise your website domain, there are several steps you should take. You want to know what others are charging for domains that are similar to yours. You should not look at the original cost of your domain as a guide for what the cost should be today because the cost changes. The good news is some sites collect this type of information so it is not that difficult to find out what others are paying for similar domains. Not all domains are reported so while these sites give you useful information, there are limits to how many sites you can see listed. DN Journal gives you a list of the highest-selling domain names over the past three weeks. When looking at the sale of other sites for comparison purposes, you should look for sites that have a similar length and keywords as your own site so you can do a fair comparison.
Use Appraisal Services
Using an appraisal service is a great way to appraise your website domain. This website gives you information about a specific domain which helps you determine its value and compares it to similar domain names. Keep in mind, you can do most of this yourself but it does take time and a solid understanding of what you need to know about appraising a domain name.
These sites do much of the work. They compare your domain to similar ones and then collect information about how much those domains are sold. They can give you some understanding of your domain’s value based on the criteria that makes it sellable, which are listed in detail further down. This is a quick way to determine the reasonably accurate value of your domain name without guessing. If you plan to use one of these sites, be sure to use reputable and well-known.
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Look at the Cost People Are Willing To Pay
When you want to appraise your website domain, you should also consider asking people what they would be willing to pay for it. While you may have followed all of the prescribed criteria when giving your domain a name, it still might not be anything someone wants to pay for. It may not be relevant or is similar to another domain name. If it is too close to another website, people could go to the wrong site when looking for yours and you could potentially lose business to that other site.
Now, as I am sure you know that sometimes things take on a life of their own and the same is true for domain names. You could have a domain name that is not valuable to most, but to a small group of people, it is incredibly valuable. That group is willing to pay for the domain, which makes it profitable. You can put your domain name up for sale and see what people are willing to pay for it. When you list it for sale, you can set a minimum price that you want to sell it. This way putting it up for sale will not hurt you because you have someone trying to buy it for a small amount of money.
The sale of a domain is like an auction, so it is open for a set amount of time and then people bid on your name. If you do not get your reserve price or higher, then the auction ends and you do not sell your domain name. You are able to see what people bid on your domain without having to sell it at a price you do not want.
Use Domain Name Value Estimators
A domain name value estimator is the same thing as a domain appraisal site. You may see them referred to in different ways but they both function the same. They are an important step when you want to appraise your website domain. When you are making a determination about buying or selling a particular domain, these sites can help you make that decision. However, keep in mind that there are many sites available. Many of these sites are free while others may charge a high fee. Most likely, you are going to get the same information from the free sites as you do from the ones that charge. You may want to consider looking at the free sites first. This can help you determine just how much you want or should pay, for a website, especially if you are considering paying so much that you need a business line of credit to purchase it.
What Makes Your Domain Name Sellable?
As you appraise your website domain, you will find there are several criteria that can help you determine if your domain is sellable. I am going to list some of them here to give you a better understanding of what your domain needs to have to make it profitable.
This is a huge part of what makes someone want to buy a domain. There are domains that are incredibly popular because they are recognized immediately. When you think of a website name for a company, you want something that people can recognize without much thought.
The amount of traffic and volume a site sees are a core part of how valuable it is. The reason is fairly clear because it always has people who visit it. It is already well known and you do not have to work to get people to come to your site because they already know about it. If a site has been active, it may already be optimized for search engines which makes your job easier because you will not have to do any work to get it to rank high in search engines.
Your domain has to have the right keywords, which is part of being optimized for search engines. Your keywords must be high quality and if the domain itself contains a keyword, it is more wanted and therefore people will pay more money for it. For example, if your business had something to do with plumbing, you would want your domain name to have the word plumbing in it to make it more valuable.
While it may be hard to determine the brand of your domain, you should consider it when determining the name of your domain. You want it to be clear and easy to remember. You also want it to be unique and get the attention of customers.
You want to make sure your domain name is spelled correctly. Rarely will someone come to your site if you have spelled something wrong and it looks unprofessional? The exception to that is when you intentionally spell something wrong to make it seem current and fresh. It is a fine line to walk between being fresh and new and looking like you do not know how to spell. Make smart decisions when it comes to the spelling of your domain name.
Typically, the shorter the domain name, the more it is worth. Now, do not think that your domain name should be short and therefore make it a bunch of random letters that do not make sense, or are hard to remember. You want the name to be meaningful and as short as possible. Shorter domain names are worth more because people will pay more for a name that is easy to share and much more marketable.
Domain Name Appraisal Sites
There are many sites you can use to appraise your website domain. I am going to list a few of the free ones that you might want to consider first.
DOMAININDEX.com
This site calculates the price index for website addresses. It allows you to track the development of the price and watch it rise or fall. It gives you an fast appraisal of your domain based on the sale price, or based on a more well rounded method.
Estibot.com
This reputable appraisal service is well known and trusted. It gives over 1.3 million appraisals per day. It has been used by prominent companies, including the IRS, to give the accurate and fair market value of a domain name based on the history of sales and other information. This appraisal also provides drop lists, a lead generator, a tool that can help advertiser bidding, and access to an API. You can also receive a certificate of the appraisal for a nominal fee.
Mediaoptions.com
This tool gives you an appraisal based on the metric's of your domain name and the sale price of similar domains. It also gives you data that includes top sales reports, traffic, competition, search frequency of website addresses, and CPC all in an easy to read format. While on this site, you have quick access with a click of a button to a marketplace where you can sell your domain. When you use Valuate.com, you have access to a free newsletter from Domaining. This gives you the latest information about the domain industry. This site also verifies that you do not have any trademark concerns. You are able to submit five domain names for free per day, after that, you must register and become a member.
GoDaddy.com
This is the largest address registrar in the world’. It also has its own market, auction, and dropmarket. GoDaddy’s domain name appraisal service is free and provides you with a range of values. It is instant and free and comes with an appraisal certificate which you can easily print. You do need to create an account and log in to it to use this service.
Sedo.com
This is the biggest domain brokerage in the world. They provide instant appraisal services but only to those who are members and have logged in to their accounts.
Is Buying a Website Domain a Good Way to Invest?
You are really the only one that can answer this question for yourself. Do you want a domain name because you plan to use it, or do you think you can buy it and then sell it later for a higher price? If you plan to use it and have a valid business reason for it, then it probably makes sense for you to buy one. However, if you plan to buy it as an investment, I am not sure that is the best way to invest your money. Some domain names are expensive and you may need business finance to purchase them. Is this something you can afford to do? If the answer is no, you should stop here and not go any further. No matter which way you decide to go, make sure that you appraise your website domain first.
Conclusion
There is a lot of information on how to appraise your website domain. This only brushes the surface of all the available information. If you are looking to invest in domain names, you should do a lot more research before you buy one. If you need a domain name for your business, then you should follow the guidelines in this article to buy one that will help your business. Before you make a final decision on a domain name, be sure to appraise your website domain to find out its value.