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March 12, 2010

Assessing the Value of Your Domain

As the domain name industry is expanding rapidly on a daily basis, it may seem as if all of the good names have already been taken. While this is unfortunate for the people who have not taken the initiative to buy a good domain name, this actually works to the advantage of the people with the good domain names. Good domain names are selling for exuberant prices, some even going for millions of dollars, so there is definitely money to be made in the domain selling industry. The question is, how do you assess the value of your domain?

How Much Does Your Domain Produce?

The answer to this question is extremely complex, and in fact there is no real way to determine the ultimate value of your domain. There are however certain aspects that will most definitely make your domain name more valuable. One thing that makes domain's particularly valuable is the popularity and productivity. Obviously a website that is already making money would be much more than a website that has no revenues. Yet even the revenue generated from a website can be a variable in the domain selling industry as well, and in some cases a monetarily worthless domain can sell for thousands of dollars based on just the popularity and catchy nature of it's name.

While having a good domain name is great way to increase the value of the domain, it should be noted that even with a popular name, you could still increase the value of the domain by giving it some of the following attributes.

What Makes a Domain Valuable?

Although the value of the domain will ultimately be decided by the client that purchases it, there are ways to increase the value of your domain in anyone's eyes. As mentioned above, the popularity of your domain will contribute greatly to it's worth, so search engine optimization is very important towards the value of your domain. It is an indisputable fact that people are willing to pay more for domains that have a high page ranking in the search engines. In fact, even domains with very abstract names can sell for thousands of dollars base don their SEO attributes alone. Another huge factor in deciding the value of the domain is the number of incoming links the domain has. Incoming links are great way to judge the popularity of a website. The more incoming links a site has, the more likely it is to receive an abundance of traffic, and n the domain selling industry, traffic is key.

Supply and Demand

Ultimately the value of your domain will be decided by the person that wants it the most. Even will all of the above fact taken into consideration, you may find that a seemingly worthless domain can sell for thousands of dollars based on it;s name. As the old saying goes, “one man's trash is another man's treasure.” You may feel your domain is worth very little money, however before you list it for a very low price, remember that you may have something that an eccentric millionaire wants badly, based on the name alone.

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