Domains are an inseparable part of any entrepreneur’s life.
The greater the number of businesses started by an entrepreneur, the more the number of domain names registered by him/her.
But not all of those domain names are used, simply because not every business idea takes off.
In such a situation, it makes sense to sell off the domain names you’re not using. You just need to be aware of the real value of your domain to do that.
And that brings us to the topic of this guide — How to arrive at a fair value for your domain?
That’s what domain appraisal is all about, and here we’re going to explore its process in detail. Let’s begin!
Frequently Asked Questions
What is a Domain Appraisal?
Like any other appraisal, the domain appraisal is a process to determine the financial value of a domain name.
It’s done by taking a lot of factors into account, such as market demand, extension (also known as TLD), memorability, etc.
Professional domain appraisal companies exist in the market to consider these factors while deciding the value of a domain.
What is the Best Domain Appraisal Company?
GoDaddy’s domain appraisal services are hands down one of the best.
Since they’re the largest domain registrar globally, they have access to real-time market data that can be used for determining the value of a domain name.
They can also connect you with buyers for your domain, so that’s another thing in their favor.
How to Do Domain Appraisal: Step-by-Step Instructions
There’s no set formula to calculate the value of a domain name. Instead, there are only a set of factors that can be used to assign a particular value to any domain.
Every domain valuator uses these factors as per their preferences, so we too have created a process that’s best in our opinion. Here it is:
#1. Get An Estimate from Domain Appraisal Services
There are dozens of domain appraisal services available in the market nowadays that can provide you with an estimated range in which the cost of your domain name should fall.
Each of these services uses different criteria of evaluation, so if you use many of them, you’ll get a range that takes all appraisal factors into account.
Here are a few popular domain appraisal services:
Some of these tools base their analysis only on the market demand, while others take into account a number of factors like domain age, domain authority, memorability, extension (TLD), etc.
So if you use multiple services to perform the appraisal of your domain, you can easily take all necessary factors into account to arrive at a base range without complicating things a lot or without doing the analysis yourself.
This base range, once calculated, can serve as the upper and lower ceiling of your domain’s price point.
#2. Check The Prices of Comparable Domain Names
Once you have arrived at a base range for the value of your domain using the various appraisal services, the next step that you can take to arrive at an average value is to compare the prices of similar domain names.
It’s similar to link-building strategies that rely on competitor analysis. Just perform a search for domain names similar in length and related to the same industry on GoDaddy and see how much they cost.
For instance, if you have a domain name SanFracniscoProperty.com then to arrive at its average value you can check the value of similar domains like ChicagoProperty.com, NewYorkProperty.com, etc.
This will give you a round-figure number that can be the average price of your domain from the range that you determined in the previous step.
#3. Go to the Market
The final step is to check the market. Because in our globalized and capitalist economies, prices are ultimately decided by market forces.
No matter how much we want to charge for something, if for some reason people are not willing to pay that much then no amount of logic can justify the value that we have assigned.
This applies to domain names too, and that’s why we asked you to calculate both a base range based on multiple factors as well as an average price based on peer comparison.
This gives you some room for back-and-forth if buyers in the market are not willing to pay a fixed price that you calculated.
Once you have your figures in mind, list your domain on domain flipping services (i.e. Flippa, GoDaddy, etc.) and marketplaces where people go for buying expired domains.
Mention the average price and price ranges that you found as the price of your domain.
From there onwards, the response you get from the market will determine the real price of your domain.
Similar Tutorials to Check Out
- How to Look Up Domain Owners: Many times when you want to buy a domain name, you need to buy it from someone else who bought it before you. In those situations, you may have to look up the owner of that domain. This tutorial explains what you can do in those situations.
- How to Transfer a Domain: If you’re selling a domain name, you’ll have to transfer its ownership to someone else. This tutorial explains how to do that.
- How To Choose A Domain Name: Choosing the right domain name for your business is also a skill to learn. It requires taking several things into account, and this tutorial covers how to consider all of them to arrive at a domain name that can last your business a long time.
So this was a method to perform domain appraisal to determine the true value of any domain name.
What do you think about this method? Share your thoughts in the comments, and if you have some queries then drop them as well. We’ll try to answer them at the earliest.
Also, share this guide on your social media handles so others in your professional circle can also learn about the true value of their domain name(s).