Without domain names, the addressing scheme over the internet would use numbers called IP addresses. So, instead of typing in a name, we would type numbers and dots. There are millions of websites out there which makes typing a domain name a really good idea. This, we know. What you might not be aware of is that domain names have calculatable values.
Just like equipment have their worth, so are domain names in the virtual world. The value of a domain name can be as little as few dollars to thousands of dollars. For a domain name to be worth six figures or less, there are a plethora of contributing elements that assist in reaching that figure including trends, language, length, demographics, length among others. Since there is no particular formula to know the value of a domain name, it will take a lot of practice to be good at it.
Here are techniques that are tried to work it out:
The TLD (Top Level Domain) After the Dot
Top Level Domain is what is used after the dot in a domain name. The TLD that has a lot of worth is the .com one because it is more common. If asked to look for a website, you might find yourself typing .com at the end by default since it has been around for a while and is looked at by many as a global domain.
There are several other domain extensions (TLDs) out there like .in, .org, and much more but they come at a lesser value than .com TLD.
Number Additions in the Domain Name
If you decide to use numbers in your domain, its value will reduce. For instance, Straight.com will be costlier than Strai8t.com. Using the number 4 instead of “for” can be catchy and yet the valuation of such a domain name will suffer in value. Generally, mixing numbers and letters is considered bad from the perspective of domain name valuation.
Words that have complicated spellings will also suffer in value compared to those with simple spellings. In addition, using letters like “y” in place of “why” or instead or writing you, you use “u”, then the value goes down.
Just like in the case of using numbers in words, it does not mean you will not sell the domain name. You will but at a lower asking price.
Typically, the domain names that have a higher appeal are worth more than those that one can easily forget. Normally, short words are more valuable compared to long ones since they are easy and quick to type without making errors, and are more memorable.
Passing the Radio Test
When someone pronounces your domain name, its ability to stick and be remembered by the listening partner will contribute to its value. The one that is easily understandable will be costlier than one that results into confusion, is easy to spell incorrectly, less memorable, and sounds bad.
The domain name that has been around for many years is more expensive because the search engines have already indexed it. It also might be generating traffic already compared to one that is registered recently. So, older domain names cost higher.
If your domain name choice contains the main keywords in a particular industry, it will definitely cost more. However, it is important to note that many keywords do not necessarily mean more valuable domain. A domain name that has more irrelevant keywords making it sound bad will be worthless.
A domain name that is relating to popular or trending subjects is much more valuable than one that no one cares about. For those names that present the opportunity of finding out how much those interested are worth, will be more expensive if the guests are unique. Also, the greater the number of interests, the more worth a domain name has.
To find out how valuable your domain name is, you can key in the name of your domain in an appraisal service provider to find the price suggestion. These appraisal services are determined according to the number of factors we mentioned above. Even though there are some elements that algorithms cannot calculate, appraisal services can help you have an approximate price for your domains.
You need to know that not all appraisal services are equal and therefore, will bring different values for the domain names because of their varying algorithms. It is clever to use several services to get a number of estimations before deciding what is right for you.
Above all, you should know who are your prospective purchasers. Understand the industry they operate in, why they need a website, and if your domain name is relevant to them. You want to put a lot of value on a domain name that attracts many buyers.