There are plenty of free tools around to have a rough estimate how much your domain name might be worth, but our preferred method of evaluation is using Google Keyword Planner plus some other factors which I will come to later.
Domain names are Brand Equity, they are Digital Real Estate Assets, they have value because of the keywords that are used, the fewer words the better. Domains should be no longer than 3 words maximum.
One word domain names are hot property. They can be valued at anywhere from thousands or ££££ to millions of pounds sterling.
It's not just dictionary short words that make the most money its Brand Names, Acronyms and clever Catch Phrases that can all be high in value, its can also be Exact Match Keywords that can make the difference in generating organic traffic. Sometimes at a moments notice depending on the daily trends your domain can increase in value even if its been gathering dust for years.
When the internet evolved astute investors bought up many one word dot coms that sold for millions of dollars such as www.hotels.com for $11M or www.insurance.com for $35M even Facebook bought www.fb.com for $8.5M
So this brings me to how much are your domains worth?
Obviously the older a domain is and how may letters or words it consists of will determine the end result.
Using free appraisal tools to compare similar domains sold in past years can also give you a clue. These free evaluators analyse the value of the domain by its age, seo and content if it has previously been developed.
Our method is to use search engine keyword analysis tools that calculate how much your keyword is searched for per month by the cost of the keyword the search engine has valued it for. We then multiply this total by twelve months to give an overall cost of paid per click advertising per annum.
However there is a click through ratio of about 2% -3% which will give you the final figure.
This basically means an average of how many people will click your ad within that given month. This method can be adapted to any Search Engine Campaign.
But some domains depending on what they mean in keywords terms to a company can be valued at 6% of the property based on past turnover and location.
You cannot do a valuation of what is the predicted turnover or final sale price as there are always uncertainties in every market.
You have to calculate actual figures of turnover of past years.
Real Estate Agents usually charge an average commission of 6% on the sale of any given property. Your domain name is Digital Asset Equity and it too has a value by the age, location and other factors like turnover and how much traffic it is generating or expects to generate.
The same principal can be applied to any business with an estimation of how much they would save in paid advertising if they were to acquire a keyword domain name. My valuation technique can also be adapted to any domain investor wanting to buy their domain names for resale.
At your discretion you can negotiate the final sale price of your domain on the end user, sometimes leasing the domain over a number of years acquiring a monthly fee can be more easier on the end users budget..
What Industry professionals are saying about domain names:
"Domains have and will continue to go up in value faster than any other commodity ever known to man."
- Bill Gates