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.
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, homes.com is worth much more than homes.net.
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, lessformore.com is a short domain name which could have some value. Less4more.com would be worth less, while lessfrmore.com 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, cheap-homes.com is likely to sell for less than cheaphomes.com.
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 eBay.com.
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, cheaphomes.com is probably more valuable than anonymous.com.
When trying to establish the value of a domain name, consider its commercial viability, as well as the intended audience. Homes.com is a very commercial domain name with a definite audience, whereas anonymous.com is less commercial and lacks a well-defined audience.