Domain Valuation Guide
Learn how domain names are valued and what factors influence their worth in the market.
Domain valuation is both an art and a science. While certain factors consistently influence domain values, the market is dynamic and subjective elements also play a role. This guide explains the key factors that determine a domain's value and how DomainAdvisor's valuation algorithms work.
DomainAdvisor's Valuation Methodology
DomainAdvisor uses a comprehensive three-part analysis to determine domain values:
- Raw Equity Analysis: Evaluates inherent characteristics of the domain itself, such as length, memorability, and spelling.
- Market Budget Analysis: Considers market factors like industry relevance, comparable sales, and buyer demand.
- Perceived Value Analysis: Assesses subjective elements like cultural relevance, brand potential, and development opportunities.
Key Valuation Factors
Valuation Ranges
Domain values can vary widely based on the factors above. Here are some general ranges:
- Ultra-Premium Domains: $100,000 - $10,000,000+ (one-word .com domains, short character domains)
- Premium Domains: $10,000 - $100,000 (strong two-word .com domains, industry-specific one-word domains)
- Mid-Range Domains: $1,000 - $10,000 (longer keyword domains, strong non-.com domains)
- Entry-Level Domains: $100 - $1,000 (longer phrases, less common extensions)
Remember that these are general ranges, and individual domains may be valued higher or lower based on their specific characteristics and market conditions.
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