How to Calculate Domain Name Value Easily, Improve Its Worth & Sell Expertly in 4 Steps

March 15, 2024April 9, 2024 by Priyanka Damwani

Domain name value is vital for brand identity and online presence. Learn all about it in this article.

Your domain name value could be soaring (or tanking) right under your nose.

That domain name you bought years ago and forgot about could be a potential gold mine. And the domain for that website you don’t need anymore could be in high demand.

Domain name values can range from a few bucks to thousands or even millions. But how much is yours worth, and is there anything you can do to improve its value before you sell? We’ll let you in on all you need to know.

What is a Domain Value? Let’s Start at the Beginning

To get to grips with domain value, you need to know what a domain is.

Your domain name is basically the address users type into their browser to get to your website. For example, google.com is the domain name for Google.

Domain names are a unique thing. No two websites can have the same domain name, which means that once a domain has been snapped up by someone, it becomes their property.

Just like any property, it’s worth money.

The value of a domain name depends on a heap of things, but before we dive into that, let’s answer another burning question:

Why does domain value matter at all?

Why Would You Need to Value a Domain Name Anyway?

Valuing a domain name helps buyers check they’re paying a decent price for the domain name they have their heart set on. It also helps sellers gauge how much their domain name is worth so they can set a fair price.

Why you might sell your domain: Roll up, roll up

You’ve paid money for your domain, so why would you sell it?

The most obvious reason is that you’re selling your business, and when you sell your website, your domain name is part of the package.

But you can also sell your domain name on its own. You might choose to do this because:

You’ve changed your business’s name
You’re rebranding your website
A better domain name has become available
You’re finished with your project (or never got around to finishing it)
A buyer has made you a good offer

What Makes a Domain Name Valuable? The Golden Ticket

Figuring out the value of a domain name can be a bit subjective, but certain things can up the value of a domain.

What impacts domain value?

The top-level domain (TLD). The TLD is the last part of your domain name i.e., .com, .org, . net, .ai… You get the picture. The most valuable are usually .com TLDs.
Domain name length. Shorter domains are easier for people to remember, which makes businesses want them.
Keywords. Domains with in-demand keywords included in them are instantly more valuable as they are more likely to drive traffic. This is something you should bear in mind when you’re choosing a name for your website.
Domain age and popularity. The older your domain is, the more likely it is to rank on search engines. So, a domain that already has lots of incoming traffic will be worth more than a domain that isn’t so popular. So, having a solid website is totally worth it.

How to Value a Domain Name: The Three Best Ways to Do It

You can figure out a domain’s value in three main ways: doing some research, checking what others think, or getting a domain appraisal.

Do your research

If you want to value your domain name yourself, then knock yourself out. But it’s worth doing some research into how much similar domain names are selling for (or run the risk of going way above or below its market price).

Domain Name Journal is a handy resource to help you with this. It gathers monthly domain name sales data from different marketplaces so you can see the highest-selling web addresses worldwide. Great stuff.

If you have a .uk domain, use UK-specific resources. Domain Sales History, for example, can give you the lowdown on the UK domain names selling each month.

Ask the market

But why not let the market decide what your domain is worth?

This is one of the easiest ways to figure out your domain name value. It’s as simple as listing your domain on an online marketplace and seeing what offers you get.

There are lots of domain name marketplaces around, with heaps of engaged buyers. Plus, lots of sites let you list domains for free without needing to set a starting price or commit to a sale.

DomainLore is a great option. It’s a domain auction site all about .uk domains, where you can list your domain and see how high the bidding goes.

Use domain appraisal services

Automated domain name appraisal services can give you an estimate of how much your domain might be worth. Popular free services, like Estibot and Free Valuator, use factors like cost-per-click, search engine ranking, and search volumes to figure it out.

Easy and smart? Absolutely. Accurate? Not so much.

Automated appraisal services rely on algorithms to produce values, and every tool looks at factors depending on its own bias. So, two different tools can give you wildly different figures.

This isn’t to say that automated services aren’t useful. See what prices you get across different tools to get a rough estimate of your domain’s value.

You could also use a professional domain name appraisal service. So, instead of a bot, you get a team of experts to evaluate your domain name.

A good idea? Definitely. Worth it? We’ll get into that later.

Types of domain name valuations

To understand valuing domain names better, remember there are three different types:

Liquid pricing. This is when domain names are sold in bulk, sometimes because of bankruptcy via a court order. At around 20-30% of the retail price, liquid pricing is the cheapest (and less common) of the domain name valuation types.
Investor pricing. A favourite of domain flippers, investor-priced domains are often 40-60% of the retail price. You’ll find these babies in auctions and on forums.
Retail pricing. This is when the domain name is offered by the domain owner to the end-user (normally a business) at full retail price. It’s the most common type of valuation you’ll come across.

What factors are considered in a domain valuation?

Whether it’s conducted by you, an expert, or a bot, domain name valuations weigh up certain factors that influence domain values.

We’ve touched on some of the key ones already, but here’s a list to sum up:

The demand for your top-level domain
The value of the keywords used
The length of the domain and how many words it uses
Organic traffic volumes
The number of high-quality backlinks
How ‘brandable’ the domain name is
Metrics like click-through rate and cost-per-click
The value of similar domains in comparison

Are paid domain appraisals worth it?

If you’re deciding whether to fork out for a paid domain appraisal, we’re going to jump in and give you some friendly advice: don’t do it.

To be clear, paid domain appraisals aren’t totally worthless. If you’re the lucky owner of dogs.com*, using a professional service is a great way to find out exactly how many millions your domain name is worth.

But if you aren’t sitting on an obvious goldmine, paid appraisal services are just another expense. With so many free resources available, it makes sense to do it yourself.

How to Improve the Value of Domain Names: Yes, It Can Be Done

If you want to get the most money for your domain name (and who doesn’t?), you can try a few things to up its value:

Double down on SEO. Focus on securing quality backlinks from top websites and fine-tune your keyword plan. This will improve your Google rankings and traffic and boost your domain value.
Build your social media presence. A domain linked to a set of strong social media accounts is instantly worth more. So, build a following on sites like Facebook, Instagram, Pinterest, and YouTube.
Obtain domain variations. Want to skyrocket your domain name value? Buy all the TLDs for your domain (e.g., .net, .org, and .co extensions) and sell them as a package. This savvy strategy works because having multiple domains that are closely related busts the competition (see you later). So, really you’re giving your buyer 100% of any relevant domain traffic.

How Can I Sell My Domain Once I Find Its Value?

There are two main ways to sell your domain: privately or via a public marketplace.

If you go down the marketplace route, you’re spoilt for choice. There are lots of domain-selling marketplaces and auction sites to choose from. Listing your domain on the Domain Aftermarket is a good place to start. You could also try auction sites like AfterNic.

If you fancy taking the reins and selling your domain privately, you can find interested buyers on forums like NamePros. Just bear in mind that this is less secure, and you’ll have fewer eyes on your sale.

How much should I sell my domain name for?

“So, what is the value of my domain?” we hear you ask. To figure out a value for your domain name, use research tools, market opinion, and appraisals to get a fair idea. It’s then standard to price your domain name slightly higher than this figure to leave room for bartering. We all love that bit.

Remember, if you have a top-level domain name that’s short, memorable, and has a popular keyword, you can price your domain higher thanks to its traffic potential.

How to Sell Your Domain Name in Four Easy Steps

So, you’ve decided to sell your domain name. Here’s how you should play it if someone makes you an offer.

How to respond to an offer for a domain name

Let’s say you’re contacted by an interested buyer before you’ve valued your domain. Maybe they’ve reached out to you out of the blue, or you’ve listed your domain on a marketplace without setting a starting price.

Feel free to ask the buyer to make a starting offer. This way, you avoid accidentally lowballing yourself while leaving room for negotiation.

Just think: how hard would you kick yourself if you made a starting offer of $200 only to realise that the buyer’s starting offer would have been $2,000?

And don’t forget, you can always respond to an offer with a counter of your own.

Value the domain name

So, the answer to “How much is my domain name worth?” is a tricky one. With so many things affecting it, it’s wise to figure out the value using a combination of methods and resources.

You can try:

Carrying out your own research to see how much similar domains sell for.
Contacting domain name buyers through online marketplaces, forums, and your professional networks.
Using appraisal tools like Estibot or Free Valuator.
Getting the help of a professional appraisal service.

Decide what the domain name is worth to you

Is your domain name a big deal to you, for whatever reason? Is it a domain you’ve put loads of time and effort into building? Does selling your domain mean you’re going to have to spend big money on things like rebranding?

The real value of your domain depends on the answers to these questions. So, use them to set your lowest asking price. Of course, you don’t want to kick off negotiations with this figure, but you should keep it in mind throughout the selling process.

Close the sale

Once you and the buyer have settled on a price you’re happy with, you can close the sale. A sale isn’t really successful until the domain name has been transferred and you’ve received your money.

One tip is to use a domain name escrow service. These protect you and the buyer by holding on to the buyer’s money until the domain name has been fully transferred. The buyer’s money is only sent on to you once the transfer is done and dusted.

Trust OnlyDomains’ Robust Software for All Your Domain Needs and More

Choosing a great domain name can massively affect the success of your brand and website, but the importance of domain name value goes way beyond the name itself.

As if getting high-quality domains weren’t enough using OnlyDomains’ reliable software, you also get to use WordPress hosting and website-building features to make top-notch, responsive, and on-brand websites. You can even set up a business email with the same domain.

If you’re interested in seeing how OnlyDomains can help you maximise your domain name value, why not get in touch today?

FAQs About Domain Name Value

Why do domain names cost money?

Domain registrars take care of cybersecurity measures, privacy controls, server management, and more. To cover these costs and make sure only active domains are using resources, domains need to be bought from registrars and renewed each year.

Are domain names worth the money?

If you want to build a website that drives traffic and profit, then yes: domain names are absolutely worth the money. But, the real value of a domain name is entirely up to you. For example, you might decide that a .com extension isn’t worth the price tag and opt for a .uk extension instead.

How much is a three-letter .com domain worth?

In 2024, three-letter .com domains are like gold dust. If you do find one, prepare to dig deep. The domain ECL.com recently sold for around $600,000 (approximately £473,000), so that puts things into perspective.

What are the most expensive domain names ever?

To date, the most expensive domain name reported is cars.com, which sold for $872 million (around £678m). Other big sales include carinsurance.com (49.7m), insurance.com (35.6m), and vacationrentals.com (35m).

Do I have to own a domain to get it appraised?

No. You can do a domain appraisal on a domain you don’t own using free domain appraisal tools.

*Who’s a good domain? You’re a good domain!