How to Establish the Value of a Domain Name

Author : | Category : Internet | Last Updated :

There are many companies which offer domain name valuation services. Some charge a fee, while others offer this service at no cost. Most of the valuations are made based on recent sales of similar domain names. However, since each domain name is unique, it is not really possible to place a value on it. Ultimately, the value of a domain name is determined by the price a buyer is ready to pay for it. You might have in your portfolio a domain name which you consider to be very valuable. However, if you don’t find a buyer for it, the value remains latent.

The following are some guidelines which can help you get an idea of how much your domain name is worth.

Unsolicited offers

At times, you might receive unsolicited offers from people who want to buy your domain name, even when it has not been listed for sale. This is a clear indication that somebody out there values your domain name. The amount quoted in the unsolicited offer will help you establish a value for your domain name.

.com domain names

When it comes to domain names, .com is still the most preferred extension. Generally, a domain name with a .com extension is much more valuable than the same domain name with a different extension. For instance, is worth much more than

Length of domain name

Short and memorable domain names usually have more value. However, the name should not be shortened by substituting numbers for letters, or cutting out important letters or words. For instance, is a short domain name which could have some value. would be worth less, while is basically useless.

Domain name hyphenation

Though hyphens can be useful for enhancing clarity, they usually lower the value of a domain name. For instance, is likely to sell for less than

Suffixes or prefixes

Suffixes or prefixes in a domain name can significantly lower its value. Adding an ‘i’ or ‘e’ in front or behind a domain name usually has a negative impact on its value. However, there are some exceptions such as

The number of words

Usually, domain names made up of few words are very valuable. However, some domain names made up of common two-word or three-word expressions are more valuable than those made up of rare one-word expressions. For instance, is probably more valuable than

When trying to establish the value of a domain name, consider its commercial viability, as well as the intended audience. is a very commercial domain name with a definite audience, whereas is less commercial and lacks a well-defined audience.

8 thoughts on “How to Establish the Value of a Domain Name

  1. Nice clarification, I know there are many people who buy short name domain in hope to get higher value after some time but they usually don’t consider such relevant points while buying their domains.

  2. Short domain names are always better – they can be remembered easier so people could easily visit your site. Brevity and clarity truly applies in choosing a good domain name.

  3. I can see why would sell for less; it is difficult to remember the spelling. The last thing you want is to frustrate your audience and that is sure to do so. Though I agree that short domain names are overall better, longer ones can also be pretty valuable; as long as the name is instantly recognizable.

  4. Nice pointers to think of when choosing a good domain. Add to that the domains that “can be used” for brands, but avoid domains that already have brands – to avoid law suit trouble in the future.

    1. Very true. The value of a domain also depends on its ‘brandability’. Thanks for sharing!

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