How much is my Domain Name Worth?

How much is my Domain Name Worth?

Today I had a really interesting experience and that’s why I decided to blog on this topic! As many of you know, I own a classifieds website called UsedMobiles.in that I started 3 years ago and is doing reasonably well in terms of traffic and income. This urged me to explore opportunities in the same lines to start a national TLD based classifieds website for another consumer product. The domain I was looking for was already registered and hence had to privately contact the owner of my domain name of interest.

The domain name is UsedProduct.in (can’t reveal the real domain name, but it’s similar to the given one) and the reply from the owner was like an electric shock!!! The amount he was asking for the domain alone was 2 MILLION indian rupees!! Remember that this is only the domain without any content, website or traffic. I immediately replied with a thanks and goodbye. I am still shaken to understand on what basis does domain owners assess the value of a domain that they have collected.

How to assess the value of a domain name? Here are some factors that add or reduce value to the evaluation:

  • How many dictionary words in the domain
  • Is it a top level TLD (.com > .net > .org etc.)
  • What is the page rank and domain age
  • Is there a website developed / quality of software
  • Most importantly – traffic to the website and income generated.

Considering all the above factors, we can evaluate the worth of a domain name. Frankly, if you were to invest in a domain with no traffic, no page rank, no website and not a single or double attractive word – don’t expect more value than registration cost! If you have such a domain, build a website or blog on it, add content, drive traffic and the sell it. ( unless you own a domain like bank.com)

Take home: If google.com was not a search engine and no one ever heard of it, you will get to buy it for 9 USD maximum!! It’s the value that you provide that’s important and that’s what your domain is worth.

One Response

  1. Stacey Abo September 19, 2011