You have a domain name and want to know its real value. Maybe you registered it a while back, or you have a few and are thinking about selling. Determining a domain’s value can be confusing. One tool might say $50, while another says $5,000. So, how do you get an accurate answer?
Domain names can be valuable, but their value depends on factors such as demand, timing, and ease of recall. For example, in 2024, NameBio.com reported $185 million in total domain sales, and rocket.com sold for $14 million. Short, memorable .com domains usually get higher prices, while longer names or less common extensions tend to sell for less.
How do you determine what your domain is worth? You’ll need to use several valuation tools, understand the factors that affect value, and compare your domain to real-world sales. Here’s a step-by-step guide to help you.
Why You Cannot Rely on a Single Appraisal Tool
Many people make a common mistake when valuing their domains. They use one free tool, see the result, and think that’s the final answer. This doesn’t work because each tool uses different methods, data, and ways of weighing factors.
Domain investors who use multiple valuation tools report that their pricing is 52% more accurate than those who use only one. This shows why it’s better to use various tools.
Every tool has its pros and cons. Some are better at checking keyword value, while others have more detailed sales history. By comparing results from different tools, you get a clearer idea of what your domain could really sell for.
The Best Free and Paid Appraisal Tools
GoDaddy Domain Appraisals
GoDaddy is the world’s largest domain registrar, managing over 82 million domains. Their appraisal tool uses machine learning and over 20 years of real sales data.
When you enter a domain, the tool looks at similar sales, keyword value, extension type, and length. GoDaddy says domains with fewer than 15 characters are worth more. The tool also shows identical sales, so you can see how it arrived at the estimate.
This tool is free, and because GoDaddy has such an extensive database, it’s a good place to start when valuing your domain.
EstiBot
EstiBot does over 2 million domain appraisals every day, making it one of the most popular valuation services. Its system considers more than 100 features, both inside and outside the domain.
Internal features include domain length, extension, word count, and pronunciation ease. External features use external data, such as search popularity and direct traffic. EstiBot uses machine learning to improve its accuracy with every appraisal.
By combining internal and external factors, EstiBot helps you understand both what makes your domain unique and the level of demand for it.
Sedo Professional Appraisals
If you want a deeper analysis, Sedo offers paid appraisals for $99 per domain. You’ll get results in five business days, and the report evaluates 10 factors, including how well the domain performs in search engines and for advertising, as well as its likelihood of selling.
Sedo operates worldwide and has an extensive database of international domain sales. This is helpful if you have country-code domains or names targeting non-English markets. The paid service provides more detail than free tools, which may be worth it if you’re selling a valuable domain.
NameBio for Sales Comparisons
NameBio keeps a history of over $1 billion in domain sales. You can use it to look up real prices paid for domains like yours.
In 2024, the average sales price for domains on the NameBio Top 100 list was $457,648, with a median of $142,131. To make that list, a domain needed to sell for at least $85,000. These figures give you benchmarks for premium domains, though most domains sell for far less.
The real value of NameBio is finding comparable sales. If you own a two-word .com in a specific industry, you can search for similar domains that have sold and see what buyers actually paid.
What Determines Domain Value
Knowing what affects domain prices helps you judge your own domains more accurately.
Length Matters
Shorter domains usually sell for more. They’re easier to remember, type, and less likely to be mistyped. Research shows the average domain length for the top 50 websites is six characters.
Single-word English names accounted for 63 of the top 100 domain sales in 2024. Only seven two-word domains and one three-word domain made the list. This pattern shows that shorter names perform better.
Extension Type
The .com extension remains the most valuable. Research shows .com domains sell for 300-500% more than similar domains with other endings. In 2024, .com sales accounted for 74.4% of total dollar volume.
However, some other extensions are becoming more popular in specific fields. .ai domains, for example, increased in value by up to 20% in 2024. The .ai domain ranked 20th on the Top 100 sales chart, up from ninth place in 2023. If your domain is related to technology or artificial intelligence, a .ai ending could make it more attractive to buyers.
Keyword and Brand Potential
Domains with popular keywords are often more valuable because they improve SEO. If your domain matches what people search for, it can bring in targeted visitors and appeal to buyers.
Brand potential matters too. A unique, memorable, and easy-to-pronounce domain is more valuable for marketing than a generic one. Buyers will pay more for names they can turn into strong brands.
How to Calculate Your Domain Value: A Step-by-Step Process
Here’s a practical way to figure out a fair value for your domain.
Step 1: Gather Multiple Appraisals
First, check your domain with GoDaddy’s free tool and EstiBot. Write down both values. If the numbers are very different, it means there’s some uncertainty about your domain’s value.
Step 2: Search for Comparable Sales
Next, use NameBio to identify domains similar to yours. Check for similar length, keywords, and extension. Write down what those domains sold for and when. Recent sales are more important, since the market changes over time.
Step 3: Assess the Factors Yourself
Think about your domain’s length, extension, keywords, and brand potential. Be realistic. A 20-character domain with hyphens won’t sell for as much as a five-letter .com, no matter what the tools say.
Step 4: Consider Market Demand
Is your domain in a busy industry? In 2024, technology, finance, and gaming were the top buyers, looking for short, catchy names. Domains in these areas may sell faster and for higher prices than those in less active fields.
Step 5: Average and Adjust
Combine the appraisals, similar sales, and your own judgment to set a realistic price range. No tool can consider every factor, since a domain’s value also depends on what buyers and sellers want.
What to Do Once You Know Your Domain Value
If your domain is valuable, you have a few choices. You can list it for sale on sites like Sedo, Afternic, or GoDaddy Auctions. You could keep it as an investment and wait for the right buyer. Or, you might build a website on it to increase its value.
If you want to build a website, you’ll need good hosting. GreenGeeks gives you free domain registration or transfer for the first year, plus free SSL, nightly backups, and a CDN. They also offer WHOIS privacy protection, so your personal information remains private while you retain control of your domain.
GreenGeeks hosts over 600,000 websites and lets you manage unlimited domains with one account, which is helpful if you have a portfolio. They also match 300% of their energy use with renewables and plant a tree for every account, which is a nice bonus if you care about the environment.
Setting Realistic Expectations
The reality is that most domains aren’t worth thousands of dollars. Million-dollar sales make the news because they’re rare. In 2024, the average domain sale on NameBio was $1,290, which is a good number to keep in mind when setting your expectations.
Automated tools can provide an estimate, but the final sale price depends on finding the right buyer at the right time. A domain might be valued at $5,000 but not sell for years, or it could sell fast for $2,000 if someone really needs it.
Use the tools, review comparable sales, and set a competitive price if you want to sell. If you think your domain will be worth more later, hold onto it. Now you have a way to figure out what your domain is really worth.
