When is the right time to get a domain appraisal?
Do I possibly have a million dollar domain name? How do I tell how much my domain is worth when I go to sell it?
Here is the experts guide to domain appraisal for your domain portfolio. If your trying to find what your entire domain portfolio is worth it can be a difficult task.
Free domain appraisal tools do not give you an accurate estimated value of a domains value.
So you could be either under-selling your domain name or giving a buyer a price that is not realistic.
Whether you are trying to buy a domain or see what interested buyers should pay for your name here is how to find the real value.
Everything you wanted to know about domain appraisal services
A domain name appraisal is the process of determining the market value of a domain name.
It involves taking into account factors such as brand recognition, keyword relevance, potential for traffic, and other factors that can affect its overall value.
The appraisal can help you make an informed decision when it comes to buying or selling a domain name.
This article will cover how a domain appraisal is done and how to ensure the accuracy of your results.
Additionally, I will discuss general tips on what to look for when choosing a domain name and how to maximize its potential success.
With these key insights, you’ll be able to make an informed decision as you endeavor into the world of domain names!
Definition of Domain Appraisal
What is a domain name apprasial?
A domain name appraisal is a professional evaluation of the estimated market value of an internet domain.
This appraisal consists of an analysis of the domain’s value based on four key criteria – length, search engine optimization potential, extension type, and industry-relevant keywords.
A domain name appraisal helps determine whether or not to buy a particular domain name as it provides insights into its potential future market performance as well as current sales opportunities.
Related, Read: domain valuation fundamentals explained
Here is the process for a creating a domain name appraisal:
1. Research the Domain Name:
The first step in appraising a domain name is to research its history and current market value.
This includes researching the domain’s age, previous owners, and any potential trademark or copyright issues that may be associated with it.
Additionally, you should also look into the domain’s search engine optimization (SEO) potential by analyzing its back links, page rank, and keyword density.
2. Analyze the Domain’s History:
The next step is to analyze the domain’s history in order to determine its potential future market performance.
This includes looking at the domain’s past sales, any previous owners, and any changes that have been made to it over time.
You can see previous owners using the WHOIS records and when the domain was purchased.
3. Evaluate the Domain’ s Potential:
After researching and analyzing the domain’s history, you should then evaluate its potential for success.
This includes looking at the domain’s extension type, length, industry-relevant keywords, and SEO potential.
Use critical thinking, if your domain name means nothing or is a made up word with numbers, consider the possibility your domain will not be worth much.
4. Determine the Market Value of the Domain:
Once you have evaluated the domain’s potential, you can then determine its estimated market value.
This is done by comparing the domain’s potential to similar domains that have recently sold.
You could look and see what similar domains with different extensions on GoDaddy are selling for.
The .com version of the domain name will always be worth more.
Factors that drive domain value.
What are some other domain attributes that would make my domain worth more?
Here I will go over other factors that drive the estimated value of a domain name.
Because you have one or more of these, consider that biggest factor that makes or breaks a domains value, is the meaning of the word and the ability for it to create value for a company.
Search volume
The search volume is a factor that adds value to your domain.
When people search for specific keywords related to the domain, having those keywords in the domain name can improve search engine rankings and drive more traffic.
When coming up with a price to sell for your domain, this factor can drive up the price.
Notice, a company that buys your domain, will need to start their own SEO and marketing for the new name, and already having traffic to the domain helps them significantly.
Comparable domains sold
Another driving factor to a domain’s worth is to view recent comparable domains that have sold.
This could include your same domain’s but with a different domain extension.
As stated, the .com version is the most valuable to a potential company that buys the name.
By checking comparable domains you are getting a glimpse of what other buyers are seeing the domain’s worth.
It also gives you a leg to stand on when you go to price the name.
Companies that have a similar name.
Are there any companies that branded around a name you own, if so your domain might be more valuable.
Depending on the domain extension you own and how similar your name is to theirs, your domain appraisal could be higher.
The perfect buyer for your domain name.
The main buyers of a domain will be companies that have branded in some way around the name you own.
If there any companies that branded around a name you own, your domain might be more valuable.
The best situation that makes your domain worth the most is if you own the raw version of a company’s name.
Example: A large company has branded themselves as “getpaid.com” and you own paid.com, your name will be significantly worth more.
Depending on the domain extension you own and how similar your name is to theirs, your domain appraisal could be higher.
Consider this: your domain could be worth $5 million, but would somebody be willing to pay that much?
Is the value that your domain brings to a company worth $5 million dollars, or are they better off finding an alternative?
Portfolio appraisal
Can appraise entire domain portfolios?
Yes, you can absolutely get an entire domain portfolio appraised and get a appraisal report.
The best way to appraise an entire domain portfolio is to send your list of domains to a domain broker.
They will be able to quickly evaluate the best most valuable domains from the least.
Domain valuations are different with Every domain and to get the most accurate appraisal you need to have an expert do it.
Benefits of Domain Appraisal
The benefits of domain appraisal are numerous and critical to you selling your names.
It can also be useful if you are trying to buy a domain.
It provides a comprehensive analysis of the domain’s potential market performance, allowing you to make an informed decision about whether or not to purchase it.
Also, it can help you determine the right price to pay for the domain by providing insights into its current and future value.
A domain appraisal can also help you maximize the potential success of your domain by providing insights into its SEO potential and industry-relevant keywords.
Consider that you can tell somebody that their domain is only worth so much, but how do you convince them of that or bring down their asking price?
This is why domain brokers are crucial to have, they come from a place of authority and are able to negotiate the price lower.
How to establish a Fair Market Value of a domain
“We want to buy a domain from somebody, what do we base a price off of? How do we find that perfect price were the seller and us are both happy?”
Establishing a fair market value for your domain is an important step in the domain appraisal process.
This involves researching and comparing similar domains that have recently sold, as well as evaluating the domain’s potential for success based on its length, extension type, industry-relevant keywords, and SEO potential.
When researching similar domains that have recently sold, it is important to look at their age, previous owners, and any changes that have been made to them over time.
Additionally, you should also consider the domain’s potential for success by analyzing its back links, page rank, and keyword density.
Once you have established a fair market value for your domain, you can then make an informed decision about whether or not to purchase it.
Consider using a domain broker to help you find the “perfect” asking price of a domain.
A broker will also be able to approach the seller from a standpoint of strength, as brokers can brake down a domains value and negotiate a fair price.
How to Identifying Potential Buyers and Investors For Your Domain Name
“We have an awesome domain, its short, valuable, and its priced to sell, how do we find a buyer?”
Identifying potential buyers and investors for your domain name is an important step in the domain appraisal process.
To find buyers and investors, start by researching similar domains that have recently sold. This will give you a better understanding of the market and its trends.
Additionally, you should also look into industry-relevant keywords and SEO potential to identify any potential buyers or investors who may be interested in your domain.
Companies acquire domain names for four reasons.
- Brand
- Sub-brand
- Marketing
- Defensive Positioning
Your domain name will go up in value when your domain name has a broader appeal.
Consider that there is not always a perfect buyer for your domain, and it could take some time to find one.
Many domain brokers also have connections with domain investors that you can not find or reach out to.
Domain Appraisal Services, Value and Estimates
The best way to appraise your domain name is to hire a qualified and seasoned domain broker.
If you think you have the best domain ever, you need to go to the best and get it appraised.
A seasoned broker that has years of experience and hundreds of domain sales will be able to give you the most realistic appraisal for your domain.
The flip side is you can come up with your own price, and either make an unrealistic offer to a seller, or suffer as a seller when nobody buys your overpriced domain.
How to calculate the value of your domain?
“How do i calculate the value of a domain name”?
Here is an in-depth blog you should read that goes over domain value and how to price your domain.
The three pillars of domain value and pricing is the principles of how a domain is valued and priced.
Read Now: Domain name value, which goes over how to value and price your domain name.
Domain Name Valuations Buckets
Here are the types of domain valuations and pricing in different circumstances for domain names.
These are the three different types of pricing explained.
Related: read how to value your domain name.
Liquidation Pricing
Liquidation pricing is when you need to sell your domain name in a very quick timeframe. This could be due to bankruptcy, court ordered or the need to raise cash. This will typically involve getting 20% – 30% of the retail value. It is important to get with a qualified domain broker to make sure you have options if you need to sell a domain quickly.
Investor Pricing
Domain names are considered assets and there is a very robust and healthy investor community buying domain names.
A domain investor will acquire a domain name to hold for a higher price in the future. Domain investors are no different than real estate or art investors.
The turn over for a typical domain investor is only 1%-3% of their inventory each year.
This type of buyer will be willing to pay 30% – 50% of the retail value of the domain name. They are willing to take the risk and hold the domain name for years.
Retail Pricing
The most desirable market and buyer is the end user buyer.
This buyer will receive the greatest return from acquiring a domain name.
This means that they are willing to pay more for the domain name.
The pricing and offer for a domain name still depend upon the revenue and profits of the company.
Here are five buyer types for the retail customer.
- Hobby buyer
- Local business and Solo Entrepreneur
- Legacy business and National business
- Buyable and Scalable business
- High Revenue Entrepreneur
Related: Read How to price your domain name
Marketability, Timing & Market Trends
The market plays a critical role in determining the right time to sell or position a domain name for potential sale on the open market.
It is imperative to understand market trends and factors that can influence the marketability of a domain name.
Keeping track of meaningful market indicators, such as new technology or changes in consumer behavior, can help you make informed decisions about when to sell your domain name.
Timing is also a crucial factor to consider when deciding to sell a domain name.
Selling at the right time can significantly affect the price you can command for your domain name.
The value of a domain name can fluctuate over time, so it’s essential to keep a close eye on market trends and be strategic in your approach.
Market demand for your domain name.
For instance, take the recent boom and fluctuations in the crypto space which has effect domain sales for names in this space.
There was a significant market for crypto domains in the last 2 years and we have seen a significant decline for these names.
Notice that the sale of your domain name name depends heavily on timing and marketability and the current market trends.
Related: read domain buy service
Summary.
When you are trying to determine the value of your domain, using a professional domain appraisal service is the best way to ensure an accurate estimate.
These services take into account various factors, including brand recognition, keyword relevance, potential for traffic, and other elements that impact a domain’s overall value.
While free domain appraisal tools can be useful for getting a rough estimate, they are not as reliable as a professional appraisal done by a domain broker with years of experience in the marketplace.
Domain appraisal can provide insights into a domain’s potential market performance and help maximize its potential success.
By establishing a fair market value for your domain, you can make an informed decision about whether or not to purchase it.
