There’s a lot to consider when you’re trying to determine the value of your domain name. To perform an accurate appraisal, you need to understand how these factors can make a website successful and why they’re important.

Relevant Keywords
Having solid keywords in your domain name can drive up the value significantly. Getting noticed online is all about Search Engine Optimization, which relies heavily on keywords. Keywords are what people use to find new products, sites, and services pertaining to their particular search queries. If you have a keyword right in your domain name, the website will appear higher up on search engine rankings. Thus, increasing visibility.

Companies can spend several thousands of dollars just to get their site noticed. Many will utilize Google AdWords and pay for exposure on certain keyword searches. All of that can be avoided with a solid domain name, which is why this factor is important.

The most lucrative domains have utilized broad keywords that can easily be adapted to the needs of the buyer. Some examples include Hotels.com, Cars.com, and Insurance.com. Big corporations snatched these up for millions of dollars and have gone on to do big things, proving that the large investment was well worth it.

Checking the Popularity of Keywords
If you’re unsure about any words in your domain name, you can turn to Google for more information. Google Trends allows you to see how the popularity of keywords rises and falls over time. You can even see how many monthly searches are made. When you’re determining your domain’s value, use this tool to accurately gauge where those keywords currently stand.

While your domain may consist of a recognizable keyword, that doesn’t necessarily mean it’s relevant to what end-users are after. Check to see how popular the word is to determine how it affects the domain’s overall value.

Top-Level Domain
There are numerous TLDs available. However, most people are only familiar with the generic ones. Domain extensions like .com, .net, .co.uk, and more have been around for a very long time. They’re instantly recognizable. As a result, most people stick with URLs that end with these extensions. Despite all of the fun and quirky TLDs that have been made available in the past couple of years, Internet users still view the old favorites as more trustworthy.

Regular Traffic
The success of the domain can also be a driving force during valuation. Established websites already have an audience, which makes things much easier for anyone who purchases the domain. If the site is monetized, the value can go up even further. You would be giving a stream of passive income, so monetization efforts are always considered when appraising a domain name.

Age
Domains that have been around for a long time have a higher value because they help with SEO. Search engines tend to rank established sites higher up on results pages. Though, this only applies if the domain has been active. Parked domains or those that only display ads for monetization aren’t as valuable. Search engines like Alexa and Google pay attention to value-driven content, so parked domains don’t have as much leverage in negotiations.

You can also use the age of the domain and its contents during sales discussions. Sites with years of content hold a much higher value than those that were established only a few months ago.

Branding
This refers to how the domain name looks and feels. It can be difficult to apply monetary value based on branding, as your domain name’s appeal can be different from person to person. Like we mentioned earlier, the domain name is something that going to be associated with the company or person who buys it.

A unique attention-grabbing domain is much easier to market than one that’s just a string of letters. Think about how your domain name could be applied to different industries. It doesn’t even have to be a real word. If it sounds good as a company name, you may be able to find a generous buyer for it. There have been many instances where businesses changed their name to fit a domain rather than the other way around.

Number of Characters
When it comes to URLs, short and sweet is always preferred. Shorter domain names are easier to remember and can be used a number of different ways. Unfortunately, many short names have already been registered. This is especially true with a basic TLD like .com. Most buyers would rather pay more for an available short domain than save money and have a new domain name that’s difficult to type out.

Domain Valuation Guide – Factors That Determine Domain Worth