How do I estimate my domain name value?

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Decided to try your hand at the buying and selling domain names, or you has your website gone offline? You will first need to know the market value of the domain name.

We are all familiar with individuals who have registered the perfect domain name and then sold it for enough money to retire on. Others buy domain names that are misspellings of popular, trademarked domains and then utilize the traffic coming in through typos providing them with valuable advertising space. Some even buy countless domain names discounted rates or try to acquire expired names, in the hope that one might actually be worth thousands or even millions.

At the end of the day, your domain is only worth what your potential buyer is willing to pay for it. With just estimates and not actual formula to appraise a domain, how does one put a price tag on their domain. However, searching for a buyer is not as tough as it sounds, with the number of domainers increasing exponentially every year. There are some factors to consider that are commonly considered to raise a domain name’s value. Development and popularity of the name, length of name, prior interest, composition of name.

Development and Popularity of Name: A well established website will increase the value of the domain. Factors such as incoming traffic, age, number of back links, etc substantially increase domain value. An established website will typically have a higher number of back links raising your placement in search engine results. Your buyer will surely be interested in taking advantage of the traffic that your website has built up. More popular your website, the higher the bid.

Length of Name: Shorter domain names in theory have a higher value then the relevant longer counter parts. The same goes for correctly spelled common words in comparison to their obscure counterparts or misspellings. Since every domainer looks for domain names that are easy to say, spell, and remember and have easily identifiable meanings; they obviously have a value in the market. In short the more unmistakable and to the point the domain, the higher the value.

Prior Interest: If you happen to register a domain that someone is looking for, do not be surprised if they directly approach you for it. Based on the all the mentioned factors and prior offers if any, you should be able to estimate your domain worth. More offers! Do not hesitate to raise your price. Do not leave out the option of a domain auction.

Composition of Name: Experts recommend avoiding hyphenated names as domain composition too is taken into consideration when appraising a domain. Keep in mind that extensions do matter, a .com domain would definitely be worth much more than a alternative of the same domain. Shortened word forms and abbreviations are only valuable if they are well-known

I also recommend visiting domain auction websites and observe how the process is carried out and by how much most domains are selling for. Along with all this, keep an eye open for trends to help you estimate your domain. Understanding your market, gives you an edge over your peers. Remember to keep all these tips in mind and your sure to make a profit.

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