How Do You Calculate The Worth Of A Domain?

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How Do You Calculate The Worth Of A Domain?

There's several sites claiming to calculate your domains real value. Basically, how much you can get for the domain if you sold it.

What I wonder is, how do they calculate this, and is this in fact likely at all?

I mean.. A domain like, (I spelled it with a "V" intentionally), could possibly be worth thousands of dollars for Ionicware.. Right?

Why? - Because some people will spell it wrong when they type it! (And Ionicware might actually lose out on users due to that.)

Sure, I can see why this might be a somewhat stupid example, but it's still an example, and you should get the point.

So, if a domains worth in general, is worth the amount of money someone would pay for it.. How do you calculate the "real" value for it?

And is that even possible?

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We were talking about this topic How appraisal of domain name is done? before and after some research i have done, this online tools to calculate price of your domain are really crude and inaccurate because they are mostly counting domain authority, traffic, age, social signals and similar things, while real real value which boost domain price enormously is proof of income and that's the main reason for some domains to be so expensive or getting most bids on auctions.
So online tools are maybe good only for appraisal of domain names which could be worth up to 100-300 bucks and yet it may be inacurate.
In case of real appraisal, it's best thing to hire some guru when it comes to some really expensive domain names

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Yeah I wouldn't trust the online tools at all. My website brings in a full time income,yet when I try out the online tools for evaluating the value of my website it can be quite disheartening to put it mildly. I just did it now and one tool told me my website is just over $200 which is insane. I charge that to clients that want a sponsored blog post, I would never sell my website for that amount!

I think the value of a website was to take the monthly revenue and multiply it by 18? Wasn't that the last discussion we had?

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That is correct Lynne. Or something like x18 at least. - But yeah, I don't think these sites gives you any real numbers at all.. But I still wonder how they can come up with the numbers they do come up with.. Especially since it can give you something totally different compared to the reality.

Do they calculate this by counting visitors, rank, backlinks and pagerank etc.. Or is it done in other ways than that? - And if they are doing this by adding the visitors, backlinks and all that.. How do they get the real numbers for those?

I mean, they must know the real value for visitors for instance.. But where did they get that from?! - This is just very confusing.. How Do You Calculate The Worth Of A Domain?

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Well, from my perspective a domain will only worth something when it produces a revenue on a monthly basis. I usually look for the average profit that website made in the last 12 months and multiple that by 10 or 12 what equals is the real value of the website/domain.

In perspective I really have no idea how "premium domains" prices are calculated, I guess it has something to do with the relevance of the keyword, how many monthly searches it has or how many characters it has.

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The price of the domain is the value that a buyer is willing to pay for it. I have seen people buy domains like 21einxc (just a set of numbers and alphabets) for a lot of money and yet I have not found a buyer for my domain I paid $10 for registration and another $10 for renewal. The highest amount offered for this two-year-old domain is just $9.

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I had read a comment in one discussion that there are sites that can help you if you are in the business of domain or site flipping. However I am sorry that I couldn’t cite the exact site because I forgot the address. Anyway, my take on domain values is it depends on the demand which means when there is a demand then you can probably name your price. But if you would offer it for sale then you are lucky if there is one who gets interested.

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