You cannot remember the IP addresses of all your favorite websites and thus, we have domain names. They are an integral part of the World Wide Web and it’s because of them that we can easily browse the internet. A majority of the domain names are words, but there are also numeric domain names. And while every domain has a certain value, its worth is determined by a number of factors.
Whether you are a domain name owner looking forward to knowing its value, want to sell your domain or invest in domain names, here are some factors to consider:
The older a domain, the greater its value. This is because older domains tend to have higher Domain Authority, a search engine ranking score. Check out the Domain Authority score as an indicator of long-term SEO performance.
Short vs. Long Name
Short domain names for sale can be an advantage. They are easier to read and remember. Since 2016, domain names with five or fewer letters or numbers have seen increased sales.
If your domain name stands for a general product or service (such as cars or insurance), that is considered a generic name. Generic names are not legally protected, so anyone can buy them. People who buy and sell domain names for profit consider such domains highly valuable.
Ask any domain name reseller about the monetary value of a domain that has in-demand keywords: You will most likely learn that meaningful keywords increase the value of a domain. Such keywords improve search engine page rankings. But strive for balance: A domain name stuffed with keywords does not add value.
If you are in the business of selling domains and have a premium domain name, you probably already know that it can fetch a high price. A premium domain name can build brand recognition and ends the premium domain search for many. These domain names are usually short, simple and have in-demand keywords.
Many in the domain buy and sell business look at the CPC rate to help determine the value of the domain under consideration. If your cost-per-click is too high compared to the average industry benchmarks, then you will not have as great a return on your investment. Also, your cost per click is heavily influenced by your competitors.
Now that you have an idea of some factors to consider regarding the value of a domain, and you know that some buyers will go for less expensive domains, give serious thought to the valuation of any domains you are selling or that you are interested in as an investor.