Domain Appraisal Guide – 20 Factors That Decide the Selling Price

Domain appraisal is a significant challenge in today’s dynamic business environment. At times, it’s difficult, if not impossible, to eschew subjective judgment in favor of facts and statistics.

However, it is risky to treat domain appraisal with an “I like it/I don’t like it” mentality. That is why a precise guide or checklist can be extremely beneficial in streamlining the assessment process.

Strictly speaking, the domain assessment protocol is comprised of twenty major factors. If you follow these measures, you will easily set the correct value for your domain.

1. Popularity of the industry.

It is critical to address the question, “what is the market volume for this domain?” It may be a short and attractive term, but it will lose value if it cannot generate much business.

2. Situation in a niche market.

Occasionally, it is a matter of fashion. Once you’ve applied the domain to a specific market, determine the size of the niche in which it will work.

3. Popularity of keywords.

The keyword popularity search is the most accurate method of market prediction and one of the most accurate domain assessment methods available. It would help if you determine the monthly search volume for the keyword phrase that your domain represents. Google AdWords Keyword Method and Yahoo’s Overture are two of my all-time favorites. If a domain name is not keyword-rich, it should be brandable (see point #10).

4. Significance.

It is a domain appraisal criterion that determines whether the domain name is serious enough to pique the attention of businesspeople. Although unusual names are amusing, they do not generate enough business.

5. The importance of the top-level domain.

While.COM might be the king, what about other top-level domains? The top-level domain extensions are.COM,.NET,.ORG,.CO.UK, and.DE. They have the opportunity to sell for more than $100,000—the midfield, which includes.NL,.US,.FR,.RU, IN, and.CN seldom exceeds $100,000 but can exceed that for the right name.

The lower end of.INFO,TV,MOBI,FM,.AM, BE, and.CC is sometimes seen selling in the $XX,000 range, while the struggle TLDs.BIZ,.WS, country TLDs, and.NAME seldom sells for a thousand dollars. However, domain appraisers must bear in mind that a great.BIZ would undoubtedly generate more revenue than a shoddy.COM.

6. A phone test will ascertain if the domain contains some offline meaning.

If you can dictate the name over the phone without typing it out letter by letter, you can increase the price by a few bucks.

7. A memory test is another way of evaluating a domain’s market potential.

Prove it to your mates by telling them the name and seeing if they can remember it after a day or two.

8. The length of the given name.

Three- and four-letter.COM domains continue to be in high demand. The majority of these aftermarket transactions, however, occur between domain name “flippers” or resellers. A name doesn’t need to be brief to be successful; a longer name that is easily memorized and makes perfect sense will suffice.

9. Recognized products.

From a market standpoint, the user must predict the website’s content based on the domain name.

A name that includes the words “telephone,” “computer,” or “games,” as well as related common goods, is likely to fetch a premium in the aftermarket. Simultaneously, a domain that bears a strong resemblance to a well-known branded product may prove difficult to sell.

10. Branding.

With nearly 100% of English dictionary terms already registered as domain names or branded, if anyone creates an interesting new term that you can convert into a trademark, domain appraisal must consider and recognize it. Before setting the selling price, it is important to search both the US and UK trademark registries.

11. Use a precise keyword.

A single-keyword domain name can be advantageous; additionally, two relevant keywords without a hyphen equals a good sale price. However, when three or more keywords are contained within a single domain, especially when hyphenated, you will significantly reduce the aftermarket price.

12 Language.

Due to the global audience and all English-speaking countries, the top sellers are domains in the proper English language. Additionally, Spanish and German names are very common.

13. Proper grammar.

Typos were prevalent at one point in time. Now, a business’s integrity needs to have a grammatically right domain name.

14. Age of the domain.

Because search engine algorithms determine a site’s ranking, domain age is critical. Older domains usually rate higher.

15. PageRank and domain evaluation.

Initially, Google launched PageRank to rate web pages according to their significance. As long as webmasters continue to be concerned about PageRank, it is still used as a factor in domain valuation.

16. Traffic entered manually.

A domain name that is concise and obvious can draw traffic from direct browser type-ins. If you can demonstrate substantial type-in traffic, you can increase the sale price.

17. Natural traffic.

Again, evidence that the site receives free organic traffic from search engines and referrals is needed. It is extremely difficult to generate traffic; even if the initial work has been completed, the customer will have to pay a premium.

18. Developmental significance.

Additionally, domain appraisal should include the creation and optimization of the related website. On the other hand, an unprofessional website will work against you in terms of sales. There is nothing wrong with offering a domain in conjunction with a website as a package deal, but the site’s content should be exceptional! Domain assessment factors 14 to 18 are intended to be used in conjunction with domain names that already have a website. If you’re evaluating a blank domain name, you can disregard these points.

19. Revenue provided by the web as a whole.

Although evidence of consistent revenue from various ads and affiliate programs will increase the selling price, a good site’s content alone will almost certainly not result in a good sale if the domain does not meet at least any of the requirements listed from 1 to 13.

20. Evaluation.

Before completing a domain assessment, you can equate the domain to comparable sales on the aftermarket. Although each name is special, there are fashion and trends. That is why it might be beneficial to visit Sedo, Tdnam, or any other aftermarket to determine which domains generate the most bids, as well as to conduct an internet search for previous sales. Signing up for many webmaster forums is a good idea to peruse the domain assessment requests submitted by users. You will be able to submit your domain appraisal request and equate your decision to other webmasters.

This guide included the twenty primary domain assessment requirements. Utilize them to ascertain the worth of the domain names you acquire and sell. If you use this checklist as a reference, you’re likely to discover that domaining is a fascinating and rewarding industry.

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