The Only Domain Name Appraisal Guide You'll Ever Need!

Wondering how much your domain names are worth? This domain name appraisal guide takes you through the basics of becoming an amateur appraiser - with no false promises or uninformed ramblings!

Two main types of domain names:

It's important to understand the ever-changing nature of the domain name industry. While some things change, others stay the same. Always remember that there are two kinds of domain names -- brandable and exact keyword:

Brandable: A brandable keyword sounds catchy or has the possibility of being marketed to stick in people's minds. Squidoo.com is a good example - it's a strange "made up" word that has a logo and color scheme behind it. It has nothing to do with squids, though.

Exact Keyword: Exact keyword domain names are just that - domain names that are an exact keyword or compound keyword, like cars.com, hotels.com or vacuumcleaners.com. They are the most prone domain names to getting type-in traffic, and have an obvious advantage in the realm of search engine optimization for ranking for the keyword they represent.

About extensions

Domain name extensions also are heavy determinants of a domain name's value. One thing's for sure: .com, .net and .org, in that order, are the most valuable and most sought-after domain extensions, purely for the fact that they were the original three; and therefore, the most memorable amongst the general internet-using population.

Other extensions including .biz, .info, .mobi and the many country-specific extensions do typically take a backseat to a valuable domain name of the original three extensions.

Most would argue that no matter what point in time we're in, .com will always be the most valuable extension of all.

Domain name length

As you may have guessed, most people would be reluctant to type in a sentence-long URL! The length of your domain name is another key in its value. Obviously - the shorter, the better. This is why one-word domain names sell for hundreds of thousands (or sometimes, millions) of dollars. They're the perfect mix of being short AND brandable, making them the ultimate cornerstone of an online business.

Short domain names of the original .com, .net and .org extensions continue to increase in demand. All 4-letter combination .com's have officially been extinct (that is, they've all been purchased and are no longer available as un-registered domains) as of 2007. Even odd and virtually unusable 4-letter .com combinations, such as "QHVX.com", can easily sell at a minimum of $50.

Type-In Traffic

Type-in traffic is the traffic a domain name receives from internet users who simply type in the domain name and see what shows up after clicking "Go." Domain names that typically get this kind of traffic may fall in the following categories:

One-word keyword domains: Short, one-word keyword domain names are what many non-savvy (or just plain curious) internet surfers will typically type in to their browser, with the expectation to see an authoritative site as a result. So, domains such as cars.com may receive thousands of type-in visits per day! Maybe you've even done this yourself. It's actually how I discovered dictionary.com, many years ago.

Dot Com domains: .com's receive the most type in traffic of all extensions - it's a fact. Why? Well, it's the domain extension that most people ever think of trying first. The ".com" is more than a domain name - it's a household name. A "dot com" is synonymous with "an online business." People expect reputable businesses and services to have one.

Popular mistypings: Virtually since the beginning of the commercial internet, registering mistyped words and mistyped company names has been a common practice. A popular mistyped word domain name may receive tons of "mistaken" visits. One of the most infamous mistype domain names, "eaby.com," has undoubtedly pulled in millions of visits since its registration in 1998!

Language

Since English is the "global language of business," English-based domain names are more valuable than those of other languages due to their universality. This is why cheese.com would be a vastly more valuable domain name than formaggio.com -- its Italian language counterpart.

Domain names that have proper grammar are worth more than those that do not. This is an unfortunate handicap that many non-native English speakers have when registering domains. It's why a domain name like "SoGoodTelevision.com" or "BestHealthsGuides.com" are virtually worthless and un-brandable names.

On the same topic of language: in most cases, it would behoove the domain name owner to own a domain that doesn't have profanity within it (unless it is a common one-word domain, which is valuable 100% of the time). Profane domain names are typically frowned upon by search engines, who cater to all age groups - including children. They also limit themselves to falling only into edgy website categories - such as porn or other un-censored, risky and extreme niches.

Aged & Developed Domains

A domain name that has been hanging around since the 90s has an obvious appeal to any buyer. Aged domain names have long-standing pasts on the 'net, and therefore, will be indexed quickly when developed. Many swear by the notion that aged domain names are favored by search engines. This has never really been proven, nor will it ever be simple to prove! Still, this thought alone has created a psychological selling point in the minds of most domain buyers.

Developed domain names have had a website associated with them (rather than being a newly-registered domain, or a domain residing on a parked page). These domains most likely have both page rank and search engine position, which are attractive factors to webmasters who don't have the time or patience to "nurture" a brand new site into its initial existence on the web.

Appraising a Domain Name

After all that, now what? This is the tough part. A good rule of thumb in beginning to assess your domain name, is to look at all of the components listed above, and see how they apply to your domain name:

Is your domain name brandable (or a "made up" word), or is it a direct keyword domain?

What domain extension does your domain name have?

How long is your domain name? Very short, just right, or too wordy?

Does your domain name get type-in traffic? If you don't know, is it possible to make an educated guess if it does?

Is your domain name an English-derived word?

Does your domain name have proper grammar?

Does your domain name currently point to a website? If so, how old is that site, and what kind of traffic and search engine standings does it have?

Other things to keep in mind...

One thing you can't have with domain appraisal is "expectancy." You may think a domain could be worth hundreds, when it may very well be worthless: this is the common mistake of any beginner...and overwhelming feelings of buyer's remorse! Appraising domain names gets easier after you actually see what they sell for, day in and day out, on domain name auction sites.

Short, single, common dictionary-word .com domain names may be valued well into the millions of dollars bracket. Pizza.com sold for $2.6 million in April 2008. Other TLDs of this nature including .net and .org typically make it into the 6-figure brackets.
Compound dictionary words (say for instance, "ShoeBox" or "AppleTree") are also very valuable for being so brandable, in an of themselves.
No matter how "worthless" some domain name extensions are perceived to be (such as .mobi and .biz) - if you own a one-word common dictionary name for it, it will be valuable. If you don't think a domain like HDTV.biz is valuable, at least to other people, you've got another thing coming!
Brandable/"made-up" word domain names (for instance, maybe something like "DirtBox" or "DoorWire") are typically worth no more what what you've paid for them. It's best to develop a site with these kinds of names with brand identity, and sell the site + the domain name as a package. You'll make more money that way.
If you're using country-specific domain name extensions, try finding common one and two-word dictionary words in that country's native language! Remember, the internet isn't just for people who speak English, and reside in the US, Canada, UK or Australia.
If your domain name includes words like "the", has unnecessary plurals or overall awkward grammar, it has a greatly diminished value than its more "proper" version. For instance, domains that would be of little or no value to buyers may include "TheNewRadioStore.com" as opposed to "NewRadioStore.com", "BestWeightsLiftings.net" as opposed to "BestWeightLifting.net", or "FyrePlaceTools.com" as opposed to "FirePlaceTools.com."
Non .com domains that are being sold will typically suffer if there is a .com version that is already up live and running. It not only makes the domain name a possible trademark violation, but also makes the potential of building and branding a website with it extremely difficult.
Domain names that have registered trademarked words within them are not only worthless, but should be deleted immediately. Don't even think of registering something like "BestUsedFordTrucks.com," "CooleBayAuctions.com" or "DisneyFiguresForSale.com," as they pose severe legal risk if used or parked!

Your Domain's Relevancy to Its Extension

Another factor that can boost your domain's potential value, is how well the name itself relates to its extension. For instance - .tv sites are particularly associated with television-related things. So, if you couldn't snag PlasmaLCD.com, then PlasmaLCD.tv would be an incredible alternative - and it's brandable, too! As for a second example - the new domain, .me, is being associated with social networking sites. Can you find any available .me domain names that pertain to social networking, profiles, dating or communication?

If your domain is relevant to its extension, and that extension's intention (honestly, I didn't mean for that to rhyme), then you've achieved relevancy and brandability.

Domainer Lingo

In your efforts to research and appraise domain names, you'll undoubtedly hear these terms frequently. Here's what they are, and what they mean!

ccTLD: Country-code top level domains are domain extensions that are reserved for particular countries, such as .us for the United States and co.uk for the United Kingdom.
LLLL.com, NNNN.com, LNLN.com, etc: Domainers may ask a broad question, like "what's the value on a LLLL.com?" In case you haven't guessed it, L = letter, N = number. So, an example of a "LNLN.com" would be "Z1C2.com".
Parked domain: A parked domain is one that is set with a "parking page." It's an option you can set through your domain registrar, for any of your domain names at any time. In essence, a parked domain sits idle, as its owner either doesn't know what to do with it at present, or is holding on to it for the future. There are also parking services that attempt to help you make money from parked domains, like Parked.com and NameDrive.
Premium Domain Name: A premium domain is basically a high profile, high value name. This would be any popular one-word domain name, regardless of its extension.
PR: Page rank; a ranking system developed by Google to determine a site's standing within its search engine, starting with N/A (no rank) and ranging from PR0 (lowest rank) to PR10 (highest rank). On average, your typical non-marketed website achieves a PR2 to PR4 during its lifetime.
Reg fee: When someone states that a domain is "worth reg fee," they mean that it's not worth more than what you paid to register the name in the first place.
Sedo: Sedo.com is by far the most popular domain name auction service in the world, domainers refer to it on a regular basis as a "reference point" as to how much the general population is typically willing to pay for certain types of domain names.
TLD or TLDN: A top-level domain name; a typical abbreviation domainers use instead of typing out the words "domain name."
$XXX, $XXXX, etc: Domain appraisers usually appraise with wildcards: typically, "X." So, an appraisal of $XXX could mean anywhere from $100 to $999. This is done because of the unpredictable nature of how much some people spend (or don't spend) on individual domain names.

More Domain Name Appraisal Resources

DigitalPoint Domain Name Appraisal Forum: Ask about the value of your domain names and get honest answers, from people in the web marketing field. It's also a good idea to read through the forum threads here, and get a good idea about what domains are valued at!
Estibot automated domain name appraisal: This heavily-used tool estimates what your domain name is worth with the click of a button. It should be held in lesser regard than a human's appraisal, but is by far one of the most realistic free domain name appraisers out there.
Sedo domain name auctions: Look through past and present auctions here to get a "feel" for what they typically sell for. Note that some of the bids and current prices may be overblown.

The Golden Rule!

When asking how much your domain is worth, remember:

"It's worth as much as someone is willing to pay for it"

In Conclusion

With all of the knowledge listed in this resource, you'll be able to understand the process that goes into valuing a domain name. It's both impossible and dishonest to create any kind of legitimate, standard pricing chart for domain names since they depend on so many factors from length, extension, words, and even the attachment that certain people might have with them. It is also equally illogical to give anything other than a price range for a domain name price quote.

Therefore, the next step is to visit sources on the internet where people are asking questions and getting answers -- or are selling & auctioning domains. After a few days of reading, you'll have a great handle on appraising your own domain names without uncertainty!

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