I was reminding another customer about renewing their domain name yesterday. This brought up the question of how much is a domain name worth on the open market.
Domain names are assets just like a car or a piece of property. While domain names are reserved or “rented” for a period of time people do sell the rights to them. There are whole websites devoted to selling and buying domain names.
But just how much is any one domain name worth? There are certain rules of thumb:
- A shorter domain name is better than a longer domain name
- A domain name ending in .com is generally worth more than one ending in .net or .org
- A domain name associated with a website that has established traffic (visitors) is valued higher than one with no traffic
There are websites that will look at all the factors and give you an online estimate for just how much your domain name is worth. I looked at a few sites that had online tools. I found the one at http://leapfish.com VERY interesting. It was interesting because when I entered my domain name, perryweb.com, it came back with a valuation of $294,150! Wow!
I savored the dream for a few minutes. Then I decided to verify the number before I booked that flight to Hawaii. While I was doing my research I saw that GoDaddy.com has a domain name appraisal service for about $15. Part of the service involves a real person looking the situation over instead of just an online tool.
GoDaddy promises the results in two days. In my case it took about 4 hours. I paused for a moment to savor the dream before I opened the email from GoDaddy. $294,150! Then I took a deep breath and saw how much GoDaddy thought my domain name was worth. Instead of giving one number they gave a range. The range was $72 to $208.
Why the big difference? I think perryweb.com fooled LeapFish because it’s an old domain name, it gets a lot of traffic and a lot of other sites link to it. Those are all great things. The problem is that unless your name is Perry and you’re involved in the web business it’s not going to do you a lot of good.
So to the rest of the world it’s not that valuable of a domain name – but for me it’s perfect!