How to Value a Domain Name: Complete Guide

Whether buying, selling, or just curious, understanding domain valuation is crucial. Here's how professionals appraise domain names.

Key Valuation Factors

1. Length

**Shorter = More Valuable**

2. Extension (TLD)

**.com Premium:** 10-100x more valuable

**.org, .net:** 10-20% of .com value

**New TLDs (.io, .ai):** Varies by industry

**Country codes:** Depends on market

3. Keyword Value

**Exact match domains for valuable keywords**

High commercial intent:

4. Memorability

Easy to:

Worth 2-5x more

5. Brandability

**Great brand names command premium**

Examples:

6. Age

**Older domains worth more**

7. Traffic

**Existing traffic extremely valuable**

8. Backlinks

**Quality backlinks add value**

9. Revenue

**Generating income? Multiply revenue**

Typical multipliers:

Valuation Methods

Method 1: Automated Appraisals

**GoDaddy Appraisal Tool**

**Estibot**

**NameBio Sales Data**

Method 2: Comparable Sales

**Find similar domains:**

1. Same keywords

2. Similar length

3. Same TLD

4. Recent sales

**Adjust for:**

Method 3: Income Approach

**For revenue-generating domains:**

Formula:

Value = Annual Revenue × Multiplier

**Multipliers by type:**

Method 4: End-User Value

**What would a business pay?**

Consider:

Can be 10-100x wholesale value!

Valuation Examples

Example 1: CoffeeShop.com

**Factors:**

**Estimated value:** $25,000 - $75,000

**End user (Starbucks?):** $500,000+

Example 2: AI-Tools.io

**Factors:**

**Estimated value:** $2,000 - $8,000

Example 3: JM.com

**Factors:**

**Estimated value:** $500,000 - $2,000,000+

Common Valuation Mistakes

Overvaluation

**Mistake:** "My domain is worth $100K!"

**Reality:** Random words rarely worth much

**Why people overvalue:**

Undervaluation

**Mistake:** Selling premium domain for $500

**Reality:** Could be worth $50,000+

**Why people undervalue:**

Ignoring Market Timing

**Crypto boom:** Crypto domains 10x value

**Crypto crash:** Values plummet

**AI boom:** AI domains soaring

**Trends change:** Values fluctuate

Where to Check Values

Free Tools

**NameBio.com**

**GoDaddy Appraisal**

Paid Tools

**Estibot** ($2-5 per domain)

**Domain Index** ($10/month)

Negotiating Strategies

As a Buyer

**Research first:**

**Start low:**

**Walk away power:**

As a Seller

**Price strategically:**

**Know minimum:**

**Be patient:**

Premium Domain Indicators

**Worth $10,000+:**

**Worth $100,000+:**

Quick Valuation Checklist

**Score each factor (1-10):**

**Total score guide:**

The Bottom Line

**Domain values are determined by:**

1. Objective factors (length, TLD, age)

2. Market factors (demand, trends)

3. Subjective factors (brandability)

4. End-user willingness to pay

**Best approach:**

A domain is worth what someone will pay for it!

Ready to find valuable domains? Use our keyword domain finder to discover available gems!