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The value, price or value of a domain name can range from a couple of dollars to millions of dollars. The real challenge is how to assess the real price of a specific domain name or how to calculate the value of the website. There is unexpected and sudden news all the time about some companies paying thousands of dollars for a domain name that is highly relevant to their company and company name. The considerable flaw in the argument of people who do not believe that domains play a significant role in the success of websites lies in the assumption that web surfers will bookmark or subscribe to a given website immediately after visiting it.

There are a couple of important things and true techniques for evaluating a domain name that you should keep in mind when trying to evaluate and they include:

  1. The length of the domain, the shorter the domain, the more it will cost. Because when the domain name is short, it is easy to spell, remember and descriptive or qualifiable. Your domain should not contain hyphens or numbers and for me it should have the extension with.com.
  2. One, two or three word domain names are much more valuable than the others (nowadays, it is impossible to find a three word domain name with the extension .com or .net). Therefore, domains with very few words are the most valued.
  3. Websites that have been around for a long time in search engines rank better and therefore this increases their value. However, most sites that have been around for a long time are not for sale, so convincing the owner can cost even more money.
  4. If we collect information from the very beginning (August 6, 1991, the first website went online), the most common is that the oldest and most popular domain name was 7 or 8 characters and 2 words. Now approx. 85% of domain names have the .com extension. The percentage that has .net, .org, .biz and specific extensions related to country names remains. Three to seven percent contain numbers or hyphens with their domain names. So for the me.com extension it is worth more than others.
  5. If domain names that are difficult to spell, have non-alphabetic characters, are extremely long, or difficult to type will not be worth more compared to domain names that are easy to spell and easy to type. Also, if you have already purchased a domain name with the extension or top-level domain (TLD) like.com, .net, .org, etc. it cannot be changed once you own the domain.

What can we do to improve the value of the domain?

Domain names were discovered to make it easy for people to access websites, so it’s important that your domain is easily understandable.

  1. Does the domain sound good?
  2. Will people know how to spell it after hearing it?
  3. Is it easy to remember?

Any confusion your domain causes will negatively affect how many others are willing to fork out.

Now, the most important thing is that what we can do to improve the value of the domain is the same thing that you do to improve the value of your website right now before you sell the domain. It is mandatory, get more customers to visit your website. The more popular your site is, the more valuable the domain will be.

Definitely, if the users or customers are eligible to find the website in the search (Google, Bing and Yahoo), there will be more visitors, so improve the SEO of the website. For search engine optimization (SEO), you can find different solutions such as on-page and off-page SEO. Increase the content too, the more content you have on your website, the more pages there are for people to visit. Today, social media is one of the powerful sources to get more traffic to your website. Write more and more blogs or articles, for this purpose look for the guest blogging websites and spread your thoughts or products all over the world, but one thing you need to keep in mind is that it is important that your words are easily understandable.

If you are looking for a fixed formula to calculate exactly the value of your domain, you are unfortunately out of luck. Appraisal services can issue a number based on a complex set of criteria, but domain names are much more than algorithms and search rankings. A domain exists in the larger context of the online and offline worlds and all of its intricacies and refinements will play a role in how much interest there will be in your domain.

Wondering how to value domain names?

There are a couple of rules about what makes a domain more valuable. Most people looking to buy a domain want to buy one that is already successful and most people on the web define success by page views and customers.

To calculate the value of your domain, you eventually need to understand who your potential customers are;

  1. What industry do they belong to?
  2. Is the website important for your business?
  3. How applicable is your domain?

A domain is only as valuable as someone is willing to pay for it, so knowing what related domains are priced at, how sought after your domain is, and how much you reasonably expect a buyer to pay will help you land on the right number.

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