Course / Lesson 3 of 8 ยท 3 min read
How to value a domain
A domain is worth what a real buyer will pay for it. The best guide to that is what similar names sold for in the past.
Step 1: Look up past sales
NameBio is a large public database of reported domain sales. Search for names with the same keyword, the same length, and the same extension. These are your "comps" (comparable sales).
If you cannot find any sale of a similar name, that is a warning. It may mean there are no buyers for that kind of name.
Step 2: Check what moves the price
| Factor | Worth more | Worth less |
|---|---|---|
| Extension | .com | Newer or rare extensions |
| Length | Short, one or two words | Long phrases |
| Spelling | Spelled as said | Hyphens, numbers, odd spelling |
| Buyers | Many businesses could use it | One company or nobody |
| Meaning | Clear product or service | Made-up or vague |
Step 3: Do not trust automatic appraisals
Free appraisal tools give a number in one second. They can help you sort a long list, but they are often far from what names really sell for. Never buy a name because a tool gave it a high value.
Step 4: Name three real buyers
Write down three real businesses that could use the name. If you cannot think of three, you probably cannot sell it either.
Step 5: Set your top price before you bid
Decide the most you will pay before the auction starts. Auctions make people overpay. A good rule is to pay no more than a small part of what you think it will sell for, because you will also pay years of renewals while you wait.