A lot of us silently wish that we had something of immense value that we can cash in on later. Perhaps, that antique flower vase gathering dust in the basement, for example. However, things of value do not have to be antiques that you are wishing would be suddenly valuable. Little things like domain names could be worth a lot of money up to a hundred or thousand times what you bought it. If you have a domain name and you are wondering if it is worth a lot of money, it is not complex to find out. You first off, need to know what the valuable part of a domain is and then coupled with some research, you will arrive at the worth of your domain.
Whether you intend to sell a domain, or you would just like to know what it is worth, a domain appraisal or domain valuation is necessary. A domain name is made up of two major components;
So, when trying to find out the value of your domain name, you need to take the following steps;
To know how much your domain name may be worth, check what similar domains are selling for. You cannot use the price you bought the domain initially, so you have to carry out research on how much domain names are being sold for. There are sites where you can check the prices of recent domain sales and see how much the highest-sold domain was sold for over the past few weeks. When you check the highest-sold domain, you can then compare its criteria with yours to see if your domain meets those criteria. You can use GoDaddy to find out their approximation of your domain:
There are websites where you can submit your domain name and wait for their feedback on what it is worth. These websites do all the hard work for you and all you have to do is wait for their report. Check out some of these sites.
Problem with services like this is that the price that they estimate for your asset can wary widely!
For example, we use the name carcleaning.com as a test domain on all three and got valuations from £347 (about USD$ 450) to USD$40,000!, we even go two different valuations from the same service (GoDaddy £15,183 about USD$19,500 and also one for USD$10,269)
Here are the actual results:
Carrying out research and using an appraisal service without doubts are useful steps but sometimes, going straight to potential buyers will save you the stress and give you the answer you are looking for. Although the other options will give you the accurate price that you can sell your domain for and help you avoid shortchanging yourself. However, sometimes, what people are willing to pay for something is the only way to determine its real market worth. Even if you will not eventually sell the domain, you could get an average value from the various offers gotten when you put the domain for sale.
We at commissioned.com take a pragmatic approach to domain valuations and base it on a raft of inputs, for example:
Age of Domain (older the better)
Length of domain
Does it have a practical meaning?
Any Previous Sale value(s)
Similar brands and domain sales
Number of offers received
so, using the above carcleaner.com example.
We would take the approach that IF this name came on the market would we be willing to spend more than $450?
Would we expect it to sell for more than $40,000?
Is it memorable and does it have a practical meaning?
So in this case we would NOT sell this domain for less than $20,000 and we would expect to pay over $20,000.
Using commissioned.com sales tools, registered buyers and its unique ADC system, this would be sold within 3 weeks!
For more tips on how to get your domain values, visit www.commissioned.com today.