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Have you ever thought about appraising one of your registered domain names, because you were considering selling it and wanted to know what the fair price would be? Maybe you’re just curious about how much your domain is worth? Did the high fees for itemized appraisal services put you off or are you still considering it?
Here’s a simple fact: domain names, like any other product or service, are worth what the market supports.
What that means is that if a domain appraiser tells you that your domain name is worth $2,500, but the most you can fetch at auction is $50, then your domain is really worth $50, not $2,500. It is basic economics. The market works with a supply and demand system. You are providing a certain domain name, and its value is entirely determined by the demand for that name. If only one person in the world is interested in buying it, its value will be pretty low (unless, of course, it’s an invader who jumped on a domain someone let expire and is demanding an obscene price for it). On the other hand, if thousands of people desperately want the domain name you are selling, the price some people are willing to pay can skyrocket, making your domain name worth thousands.
How domains are valued
Domain appraisal is not an exact science. Various factors are considered, ranging from domain length to domain extension. Here are some of the considerations:
The domain extension: A .com domain is always valued higher than .net, .org or another extension for the same name.
The length of the domain name: Domains tend to be valued more if you avoid going from 12 to 15 characters.
Hyphens and Numbers – You will receive a higher rating if you avoid using numbers and hyphens in your domain name.
Domain Prefixes – You will receive a lower rating if your domain name begins with any type of prefix, be it an e, i, the, an, etc.
Name Recognition: If you can register a domain that can be easily recognized, such as a common dictionary word, you will receive a higher rating.
Name Relevance – If your domain specifically indicates what services or products your website might offer, you will receive a higher rating.
Marketability – Could the domain name be easily marketed and promoted? Does it end itself in a simple logo and site campaign? Can it be easily pronounced in a radio campaign without being confusing, like having multiple possible spellings? Does it look attractive in print? If the answer to each question is yes, you will receive a higher grade.
Is it worth the cost?
At the very least, you should understand that domain name appraisals are extremely subjective and that you could receive very different valuations from two different appraisal companies. In a general sense, unless absolutely necessary, a domain name appraisal probably isn’t worth it. When selling a domain name, many buyers require you to provide them with one. Some even tell you which appraisal companies they will and will not accept. If that’s the case, agree to get the appraisal, but let the customer know that if they ask for it, they’ll be responsible for paying the fee up front, or add it to their bill when you process the sale. Other than that, if you want an honest opinion on one of your domain names, there are countless free forums on the Web where experienced domain buying and selling professionals will give you their free opinion, based on what they’ve seen similar domains sell. . for recently. It might be a better use of your time to get various opinions that way, and decide for yourself what you think your domain is worth. And if you considered getting a domain appraisal just out of curiosity, remember this: Your company’s domain name is only as valuable as you think it is. If you couldn’t run your business without it, it’s priceless.