If you want to place a bid on a domain, you must make sure you have a sense of the domain name’s value and if you’ll get your money’s worth. Several factors may influence the domain’s value, which could also gradually change over time. Read the following to discover all about domain name valuation, so you only buy premium domains.

What Influences a Domain’s Value?

Website owners will want the best domain name to establish their brand by increasing page views and recognizability. These domains are often valued because they help businesses grow through better online visibility.

These six factors can influence the value of a domain name:

1. Length

How many words are in the domain? How many letters make up the domain name? The value of a domain name generally increases as the domain gets shorter. Short, one-word domains often sell at a higher price because they are easy to remember.

A person is likely to recall a short domain name like sky.com over something like skyrocketers.com because of the length. Even if they saw it in passing on a billboard, they could still remember the website address after they got home.

2. Spelling

Domain names with simple words that are easy to spell will often cost more because of their high recall capabilities. Consider cook.com and culinaryart.com. Since the word cook is a common enough that people use it daily, unlike culinary. Chances are that cook.com would sell at a higher value compared to others, with all other factors the same.

3. Top-level Domain

A domain extension, also known as a top-level domain (TLD), is the last part of a domain name, the one that follows the dot. Examples include .com, .org, and .edu. The .com extension is ideal for a domain since most browsers will use it by default.  Many internet users also associate most domain names with it. Short and simple domain names with the .com extension may be more valuable than those with a different, longer extension.

4. Keywords

Does the domain name contain a broad keyword? Domain names with keywords that rank high in search results have a high value. Look up the search volume of the keyword to know its value.

A website with an exact keyword in its domain name may have better search results for that term than a domain name without the keyword. Companies selling shoes may rank better if the word shoes are part of the domain name.

5. Application

Is the domain name applicable to a specific industry or business type? Keyword domain names that organizations within a particular industry can use are often more valuable. The value is even higher when the domain name is concise.

An example is a domain name like tutors.com. Any website that offers tutoring services can use this unbranded domain name.

6. Brandability

Several domains may be valuable because of their brand recognition. Brandable domains are much more valuable if they are kept brief, memorable, and are easy to pronounce. Start-ups and online businesses prefer to use these domains to establish their brand.

The value of a domain name based on brandability is subjective and may change with time. An established brand could benefit from a domain name with its brand name if its current domain is not doing well.

How Do You Determine the Value of a Domain?

With the knowledge of the above factors in mind, you can determine if the asking price of a domain is worth it using the following methods:

1. Comparison With Similar Domain Names

Research the pricing for similar domains to determine what others pay for similar domain names. Since a domain’s worth might change over time, use the most recent sales for an accurate valuation.

2. Domain Appraisal Services

Online sites that help you check details about a particular domain name are available. You can look up the domain name to determine its worth and compare it to names with similar meanings.

Domain appraisal websites will do the heavy work for you. They gather data on the prices at which similar domains were sold. They also evaluate the value of your domain based on the element mentioned above. The result is a detailed estimate of your domain name’s value.

You can compare estimates from several domain appraisal services to get a more accurate estimate.

Where Do You Buy Premium Domains?

High-value domains are worth every cent because they can boost a business in lots of ways. Make sure to only Buy premium domains from a reputable site to maximize your online presence and generate more traffic. Using the tips listed above, you can ensure you can get the best value for your money.