CONGRATS FOR YOUR
GENERATED VOICE
• Age. Generally speaking, a website that’s been around for ten years is going to be more valuable than one that’s been in existence for two years. That’s because domains that have been around longer usually have much more extensive S.E.O. This helps them rank higher, which generates more visibility and traffic. • Competition. Finally, competition can come into play. This becomes an issue when you’re buying or selling a variation of a domain name. If there’s another domain that has a more favorable TLD, it can suppress the value of your site. Let’s say, for example, that you’re trying to purchase Business dot net. While that’s still a valuable domain name, it’s automatically going to take a hit because most people are familiar with Business dot com. Thus the number of people who are going to directly search Business dot net over Business dot com is small. • Revenue. Best still are monetized websites that have existing revenue and cash flow, but that’s a valuation discussion for another time. Much like real estate or other investments, value is determined by how much someone is willing to pay. So while you might think you have a million-dollar domain name, it depends on what the marketplace tells you. If there are only two prospective buyers and they’re both unwilling to pay more than $50,000, that’s your price. You can take it or leave it. The reverse is true as well. You might not think your domain is worth anything, only to get a slew of high-dollar offers in a two-week span. It all depends on what the marketplace thinks. All of that to say this: It’s helpful to have a basic understanding of what drives domain name valuations so that you can be an informed buyer or seller. And the more tools you have to zero in on specific numbers, the better off you’ll be. 4 Different Ways to Valuate Your Domain Name. Now that we know why domain name valuations matter and which factors impact these values, it’s time to turn our attention to some of the different methods, equations, and techniques you can use to valuate your domain name. 1. Do a Comparative Analysis. The most helpful yet least scientific approach is to perform a comparative analysis. In other words, you research the data from recent sales to see what the marketplace is paying for certain domains. The challenge with this approach is that the data can be limited and the correlating factors don’t always carry over. A domain name that’s similar to yours might sell for $25,000, but you don’t always know why it sold for this much. Your domain could be one character or TLD off and it might only be worth $200. Comparative analyses can be useful in understanding the marketplace, but they aren’t perfect. They give you a rough idea of general values, but can’t be used to zero in on a specific dollar amount.
Mar 28, 2022, 00:55 AM
English
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