Domain Worth Calculation: Factors To Consider

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Calculating domain worth: which factors are important?​

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The paid services for determining domain value typically consider significantly more criteria, which is why you can generally expect a more accurate result. But how should you as a domain owner be able to assess whether an investment of USD 50 or 100 for the determination of the domain value is worth it? In the final part of this guide, we’ll look at some of the most important evaluation criteria, which you can use to make an initial assessment of the domain name value on your own.
Note
Before you sell a domain and assess its value, you should check everything is legally sound: Trademark infringements can end up costing an arm and a leg! A good place to start is the American Bar Association who explore some of the most common areas of infringement on the web.

Domain name and length​

A rule of thumb is: the shorter the name of a domain, the higher its value. However, there are a few conditions attached to this rule because otherwise domains with arbitrary strings of letters, such as ababcd.de or abcde.com, would also be worth pots of gold. The decisive factor for the domain value is therefore whether the domain – which should be as short as possible – has a meaningful name or contains well-known (not trademark-protected) abbreviations, puns, or similar that could be of interest to buyers. On the other hand, the value of a domain is lower by default if it contains cryptic names and endings or combines several words or terms.
Tip
Have you found the perfect domain variant for your web project but have just realized that it’s already taken? In our article we’ll talk you through how to proceed if your dream domain is taken.

Linguistic criteria​

Apart from the length and popularity of the domain name, there are several other linguistic aspects that can have a decisive influence on the value of a domain. For example, it’s relevant whether the main term of the domain is a noun, an adjective, or a verb. In most cases, nouns are the preferred solution, although it can be decisive for the domain value whether both singular and plural forms are assigned – as is the case, for example, with shoe.com and shoes.com. For some nouns like “sheep”, “news”, or “staff” that are the same whether plural or singular, this factor is of course irrelevant.
Characters, digits, or words that are part of the domain but completely unrelated to other possible web projects also have a value-reducing effect.
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Availability of alternative top-level domains​

Now with new TLDs, the combination possibilities of name and extension in the web address area have increased considerably. So, if you want to determine the value of a domain, the availability of alternative top-level domains must also be considered. For example, if you own domain.com but the alternative domain.org is still available, this reduces your chances of achieving a high sales price for your address. If you buy and register domain names with a wide variety of endings right from the start, you will have a better basis for negotiation – especially if you focus on the most popular domain endings.
Note
Often, companies and online services secure the desired domain name right away with the most diverse available top-level domains. In addition, there is the approach of publishing content under different sub-level domains. This is referred to as a multiple-domain strategy.

Domain age and other SEO aspects​

Domain age refers to the date on which the web address was registered. Domains that, for example, were registered in 2011 celebrate their 10-year anniversary in 2021. Whether the time of registration itself has an influence on how Google and others rate them isn’t known. However, if the domain has already been active for years, this will surely influence the ranking and therefore also on the domain value. Especially the content and the number of backlinks that link to the domain determine the reputation of the web address. Another thing to consider is the trustworthiness of the web projects that were published under the domain in the course of time. From a technical, SEO point of view, this is relevant.
Note
Even though websites published under the domain play a role in SEO evaluation, the domain value, as already mentioned, is not the same as the value of these websites. In other words, you only buy or sell the address, unless other conditions have been agreed upon.
Together with SEO, you should not underestimate the importance and role of the domain’s keyword potential: If the web address incorporates terms that score highly on Google search results or that of other search engines, achieving a high search volume, then this can significantly help you out during domain negotiations. However, if the address is too direct and obvious with the use of keyword phrases, as is the case with the address what-is-seo.com, this tends to have negative consequences for how search engines rate it, which diminishes the value of the domain. As early as 2012, Google adjusted its own algorithm to penalize these kinds of domains, which were often associated with spam or low-value content.

Commercial potential​

Is it possible to earn money with a web address? And if so, in which industry? To determine the domain value, you also need to know how to assess the commercial potential of the address. Domains in Internet-related industries are particularly popular, which is why their value is significantly higher than those of addresses in niche industries. On the one hand, this is because companies in booming industries naturally want to impress with a suitable, strong domain. On the other hand, it’s especially worthwhile to place ads on web addresses that promise commercial potential, which in turn makes the domain interesting to partners.
If the domain has already been used for web projects in the past, this can provide a good basis for evaluating its profitability: Visitor numbers, impressions, clicks, ads used, subscribers to paid content, and various other factors can point to whether the domain is suitable for selling products or services. In this case, however, it’s also important to include the role of the websites or online stores hosted under the domain.
Note
Various top-level domains have blackout periods within which corresponding web addresses may not change owners. Our article explains which domains have blackout periods.

Finding your domain name value – here’s how

If you are looking to buy or sell a web address you should investigate the value of the domain. But how can you find out how much your domain is worth?

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