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How to determine the value of a domain name?

Just how much a domain name could be worth?? Queue a reply that frequently resembles a contractor giving a quotation… a big sucking of air through the teeth, a little shaking of the head along with the never aging line “it will cost you”. Whilst on average domain names change hands for $1,000 to $2,000, there’s enormous difference between the value and cost of a ‘run of the mill’ domain name and those at the top end of the cost spectrum. The worth of a domain name is, in truth, completely arbitrary, however there are several useful guides that will help determine exactly what the value of a domain name could be.

Singularity / memorability

As with any brand component, standout, the singularity and skill to be recalled are variables that are crucial, describing why brief / common, simple to recall terms that link to your subject have frequently been the domain names which have brought the greatest values.

Two and three letter .com domain names will consistently sell to get a fair value, from anywhere between $20,000 up to several million depending on the letter mix and demand of the buyer. Remarkable dictionary terms have generally garnered a number of the best sale prices ever, like porno.com ($8.8m before this year) and insurance.com for $35.6m in 2010.

360.com sold in 2015 to get an eight figure amount and presented a unique characteristic of the increase in the Chinese marketplace during the last couple of years, which will be an upsurge in costs of numeric domain names. Amounts also being popular in company names and are found in Chinese culture to signify a numeric value along with physical characteristics or phrases, so brief numeric amount sets signify exceptionally memorable and significant names.

Traffic

In exactly the same manner that high footfall locations drive the best values on the high street, a domain name that creates high traffic volumes will hold worth that is real. The worth of the traffic to an expected buyer depends upon the relevance of the traffic from what they’ve for the domain name in mind. The traffic operation is likely to be important to get an expected buyer targeting the French marketplace if 90% of the traffic comes from France.

dotCcom versus other TLDs

In regards to domain name worth dotCom is be far and away the King. It stays the fundamental element of a domain name portfolio for the majority of brands. Of the top 100 domain name deal ever, there are four non dotCom sales on such list. The start of the newest Global Top Level Domains (nGTLDs) is beginning to have effect on domain name value as the marketplace is awash with options, creating a larger divide between domain names which have a real worth and everything else.

Motivation of the domain registrant

Whilst all the points above are incredibly relevant, the greatest aspect in finding out the worth of a website name is the motivation supporting the domain registration as well as the registrant. “There is nowt queerer than people” and there is definitely “nowt queerer than people” in regards to exchanging domain names. Domain Name worth can change dramatically according to a registrants financial position, their attachment to the domain name (yes, both individuals and businesses become emotionally attached to domain names), if they’ve a use for the domain name, the expenses related to selling a domain name i.e. reprinting, rebranding etc. The list continues on.