What Is Domain Valuation?
Domain valuation is the term given to the process of determining a specific URL’s value. It’s similar to the process of determining a home or company’s value, but it’s not nearly as intensive. The overall value of a specific domain can vary greatly with some domains achieving a seven-figure valuation. Needless to say, the domain name market can be quite lucrative.
As you begin to learn about domain valuation, it’s important to understand how domains work. Domain names, also sometimes called URLs, are the exact numbers/letters that are typed into an internet browser address bar (howtostartanllc.com, godaddy.com, facebook.com, etc.). Domain names are made up of top-level domains and second-level domains:
- Top-level domains refer to the domain name extension, or the last few letters that come after the “.” in the domain name (.com, .org, .net, etc.).
- Second-level domains refer to the letters/numbers that precede the domain name extension.
In the web address “howtostartanllc.com”, “.com” is the top-level domain and “howtostartanllc” is the second-level domain.
What Impacts a Domain’s Value?
All domain valuation tools typically use a proprietary algorithm, machine learning, and real-time domain market sales data to determine a domain’s value. Most of these tools compare the entered domain name to similar top-and-second-level domains. There are several other factors that can impact a domain’s value as well.
- Branding - domain names that have strong branding potential have greater value.
- Domain name length - domains that have 15 characters or less typically have a greater value.
- Popularity of the top-level domain - websites that use the most popular top-level domains are typically worth more than those that use less popular top-level domains. The most popular top-level domains include .com, .net, .org, and .co.
- Keywords - Domain names that contain popular keywords are often worth more than those without keywords.
- Backlinks - if backlinks (links to your domain from other websites) currently exist, that can increase the value of a domain name.
What Are the Best Websites to Determine Domain Value?
There are many domain value appraisal tools that are currently available for free, or for a one-time fee. Each tool offers distinct benefits for customers and the paid domain appraisal tools often include additional benefits not found with free tools. Here are some of the most popular domain appraisal sites available today.
GoDaddy offers a free, lightweight appraisal tool that will take care of the needs of most small business owners. After plugging in a domain’s details, GoDaddy’s domain valuation tool can let you know if your domain is valuable, and why. In addition, GoDaddy provides users with a list of similar domains and their selling prices.
Estibot also has a free domain valuation tool that provides users with a report that includes the last sale price, comparable domains, search volume, and a market estimate of a domain’s value.
3. Free Valuator
Free Valuator provides registered users with a free estimate of a domain’s value based on statistics, web rankings, and keywords. It also allows users to obtain opinions on a domain’s value based on crowdsourcing. In addition, they have a paid appraisal tool where Free Valuator staff provide a more in-depth valuation.
Sedo is a popular domain marketplace that also provides domain valuation services. Domain appraisal reports cost $99 each and are personally conducted by staff experts. Some metrics Sedo uses to determine a domain’s value are its SEO, sales potential, and more.
How Do I Use the GoDaddy Appraisal Tool?
The GoDaddy domain appraisal tool is the best choice for most small businesses. It’s free, simple to use, and will provide you with the basic information you need to decide if purchasing (or selling) a domain is right for your business. Follow these step-by-step instructions to learn how much a domain is worth.
- Visit https://www.godaddy.com/domain-value-appraisal.
- Type the name of the domain you’d like to appraise in the “Enter a domain name” box.
- Click the “Get Value” button.
Once the “Get Value” button is clicked, the GoDaddy domain value appraisal tool will present you with three sections of information: estimated value, similar domains, and comparable domains sold.
In the Estimated Value section, GoDaddy will tell you exactly how much it thinks a domain is worth and why.
In the Similar Domains section, GoDaddy will offer a number of similar domains that are available to purchase.
Finally, in the More Comparable Domains Sold section, GoDaddy will provide you with a list of similar domains and the amount of money they were sold for.
If the domain isn’t currently up for sale, GoDaddy will offer to serve as your broker and contact the owner to see if they are willing to sell it.
After reviewing the value of your domain, you may wish to sell it. Access our How to Use GoDaddy Auctions article for complete instructions on how to sell your domain through its auction service
GoDaddy’s domain appraisal tool is an excellent choice for small business owners who are looking to purchase or sell a domain. The tool is free, incredibly easy to use, and provides you with the information you need to make an informed decision.