image credit: greatminddesign.com
For the past two decades, the domain industry has been quite successful. Most Businesses, investors, and advertisers understand the value of domain names, as well as their marketing potential when fully develop domains into websites. Investors who acquire domains must determine the value of their online real estate to make a sale or to purchase additional domains. There are dozens of appraisal systems on the Internet. How does one calculate the value of a domain? Read the steps below to determine the value of a domain.
Write down the domain name on a blank page in the notebook. Underneath the domain name, jot down the following key words in separate categories: traffic, Google Page Rank, average keyword results, Cost Per Click (CPC), and popular monthly searches. There are additional stats such as overture, word tracker, and ads, which also factor into calculating the overall value of a domain, however, they won't be required to establish a preliminary value.
Type Alexa.com in the web browser address toolbar. On the Alexa website, type the domain name into "Search Alexa" box. Click on the yellow "search" box. The website will provide traffic results. Write down the traffic ranking for both Alexa and the United States. If the domain is parked, there is a possibility it may not be currently ranked. Alexa determines a traffic ranking through evaluating a website's popularity, number of monthly unique visitors, domain age, and percentage of visitors in various regions. Worldwide and domestic traffic are important indicators to calculate the value of a domain.
Type in Estibot.com into the address toolbar. Press "return" to visit the website. On Estibot, click on the blue "appraise" header above the white box. Enter the domain name in the white search box. Click on the gray "appraise" box on the right side. Estibot will calculate an immediate appraisal value. Take for instance; news.com appraises for $11,000,000. The average search results for the keyword news is 100,000,000. News.com is currently a Google Page Ranking #8.
Lastly, the second graph shows the number of times the keyword "news" is searched on a monthly basis, which is estimated to be 9,125,600. In addition, the overture, word tracker and the CPC build value into domain appraisal. Advertisers usually bid on the CPC, which companies such as Google and Yahoo use as advertisements placed on various websites and parked domains. Record the average keyword search and the average monthly search under the designated categories in the notebook.
Perform the same operation as the previous websites. Visit websiteoutllook.com. Enter the domain name in the search box on the top right side of the screen. Press the blue "calculate" button. The system will assign a value to the domain. Furthermore, the system will display the monthly and 3 month traffic results. It is important to visit Estibot.com and Websiteoutlook.com to calculate an average value. There are times in which Estibot fails recognize the value on a website due in part to leaving out appraisal factor such as the Google Page Rank and Alexa traffic. For example, Demandmedia.com is only worth $20 on Estibot, whereas it is valued at $85,373.50 on Website Outlook.
To determine an accurate value of a domain, visit 7zoom.com. On the top right side of the web page, type in the website name. Press the green search button. 7zoom will generate a value based on Alexa traffic, daily page views, Google Page Rank, and CPC. It will also provide a graph showing the number of monthly unique visitors, as well as other stats such as Google and Yahoo back links.
For example, 7zoom value Demandmedia.com at $141,912, whereas Estibot only claims it is worth $20. The actual value of DemandMedia.com should be an average between Website Outlook and 7zoom's results. Essentially, there are times when an investor must compare results, especially when Estibot places heavy emphasis on keyword value instead of assessing back links, Google Page Ranking and Alexa traffic.
In retrospect, calculating the value of a domain requires several calculations to determine an approximate value. While these appraisal websites assign a value, they are not as accurate, and cannot be totally trusted. Websites such as NameBoy.com attach high value on .com, .net and .info domains, while they assign low appraisal values to .mobi and .us domains.
Even popular domain companies (i.e. Sedo, Go Daddy and Moniker) are not always the best indicator to determining a value of a domain. In essence, Alexa traffic, keyword popularity, and Google Page ranking are important indicators that will increase the value of a domain. Compare the results in the notebook to determine which stats are helping or hurting the value. Follow the preceding steps to ensure that every domain receives a full assessment to determine its overall value.
If you use Estibot.com to appraise a domain, then be sure to assess the true value of a domain as opposed to only the keywords.
When entering the domain industry, read domaining.com to determine what is currently popular. Names such as autoinsurance.com are worth far less in Website Outlook ($5,840) than it is at Estibot ($23,000,000).
Ask a domain expert (i.e. Elliot Silver at ElliotsBlog.com) questions regarding the value of your domain, and how much it may be worth to an end-user.
If you don't have an Alexa ranking, then consider hosting the domain to improve its traffic, which will essentially increase the domain's value.
To determine the market value of a domain, visit various domain auction websites to determine what an end-user or collector is willing to pay for a domain. Go Daddy, Sedo, and Moniker allows a visitor access to monitoring the auction.
Keep in mind that a domain valued at $800 may sell for $151,000, while a $20,000 domain goes for a measly $2,000. If you come across a cheap appraisal value at Estibot, assess the Google Page Rank and the Alexa Traffic ranking, and then visit both Website Outlook and 7Zoom to compare results.
A domain such as Elliot's Blog may be worth only $150 on Estibot, but it is actually worth over $100,000, because of its Google Page Rank and low Alexa Traffic Ranking.
Determine the the age of a domain by visiting Domaintools.com. A domain's age may generate good appraisal value because it has recurring traffic and historic data to make comparisons.
If you question how one domain sells more than another, research really the auction format and compare the domain appraisals between the three websites, as mentioned above.
If you want to determine the reason domains are popular, then search Google to evaluate the market demand. An end-user (business and or investor) will likely acquire such a domain to earn advertising revenue, start a product or service related website, and to possibly build value to flip the domain for a profit.
Don't submit a valuable domain at an auction such as BargainDomains.com, as their format accommodates overpriced domains. Instead, research the demand for a high quality 1-3 character domain, as well as a one or two word domain that targets a popular product and or service. Long domain names will also generate high appraisal value (i.e. laserhairremoval.com).
Avoid trusting the appraisal results, as either of the appraisal websites may assign a higher value than what the market permits. Instead find an average between the domain appraisal websites to determine an average value.
Avoid attaching a million dollar value to a domain that is only worth $500. This sort of practice will compromise sellers who actually have quality domains and may hurt your ability to make a future sale.