Domain valuation combines market analysis, comparable sales data, and algorithmic assessment to determine fair market value. This guide covers proven methods used by professional domain investors.
1. Comparable Sales Method
The most reliable method for domain valuation. Analyze recent sales of similar domains to establish market value benchmarks.
Key Data Sources
- • NameBio.com (comprehensive database)
- • DNJournal.com (weekly sales reports)
- • Sedo.com (auction results)
- • GoDaddy Auctions (public sales data)
Analysis Criteria
- • Similar length and structure
- • Same or comparable TLD
- • Recent sales (within 12 months)
- • Similar commercial potential
2. Income-Based Valuation
Calculate domain value based on potential revenue generation, including advertising income and business development opportunities.
Sample Revenue Calculation
Estimated monthly traffic:10,000 visitors
Revenue per 1,000 visitors:$5.00
Monthly revenue potential:$50
Annual revenue:$600
Domain value (10-20x):$6,000 - $12,000
3. Market Factors
Premium Factors
- • Short length (3-6 characters)
- • Dictionary words
- • Commercial keywords
- • .com TLD
- • High search volume
Negative Factors
- • Hyphens and numbers
- • Trademark issues
- • Poor SEO history
- • Difficult spelling
- • Limited commercial appeal
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