If you have heard the saying ‘How long is a piece of string?’ well the same thing really applies to how much is a domain name worth? So we’ve provided a list of points which are quite important to review when you are estimating the value of a domain name. If you have some advice and pointers to add to this list, please share them with us on the resources forum.
- Clear business use. Probably the greatest attribute a domain name can have is a clear business use. A domain that speaks for itself and has an obvious application to a business model stands above all others.
- Domain appraisal. Estimate the value of the domain name using a domain name appraisal tool or domain appraisal service.
- Radio test. If someone was to read the domain name out to you, would you now how to spell it? For example is it right or write? Or does it contain slang words like ‘thanx’? If it’s easy to say and spell then the value of the domain is usually higher.
- Developed or not? Is there already a developed site on the domain name? If so, then this typically increases the value of the domain. You can also check out the Internet Archive which is the historical archive of websites. You can see if the domain was ever developed and if so, what it looked like previously.
- Supply and demand. If your domain name is something common that could be highly desirable then the value of the domain goes up. If it is more of a niche name, then there may not be much demand for the domain and the price may be lower.
- Check previous sales. Both Netfleet and Drop display previous sales so you can get a feel for what similar names have sold for in the .au space. There is also DN Sale Price and Namebio for .com (and all other extensions) domains.
- Evaluate keywords. Using a tool like Google AdWords Keyword Tool (GAKT) enables you to look at the estimated search results for specific keywords. We’ve got a great guest article “The Google AdWords Keyword Tool (or GAKT for short).” that you should check out.