Knowing the Value of Your Domain

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The domain name industry is expanding rapidly, because there are so many people exploiting this industry it can seem as though every name you request has been taken. While this can seem like a negative in terms of finding the right name, it can actually work to the advantage of those that already own desirable domain names. Sought after domain names are in high demand and often times wear high price tags ranging from the thousand to the millions. If you are one of those people who is in possession of a good domain name then you will want to know the value of your product. The only question is: How do I access information relating to the value of my domain?

What is the Production Level of Your Domain?

Answering this question can be difficult. The fact is, there is no sure fire way to know the true value of your domain. However, there are certain aspects that will make your domain more valuable to consumers looking to purchase it. One factor in value is the production and popularity that a given site has and maintains. In terms of production, a website that yields several thousand dollars a month will obviously be more valuable than a page the only yields a few dozen dollars every month. Despite this, domain prices may still vary and the income level of a site is not the only factor to think about when placing a price tag on your domain. There are even some cases in which a domain that brings in no money will be more valuable than one that brings in lots of money. It is cases like these that owning a domain with a good name will come in handy.

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What Gives a Domain It’s Value?

Although the ultimate value of a domain will be up to the person who actually purchases it, there are many ways to increase the value of your domain in almost anyone’s eyes. As has already been addressed, the value of your domain owes greatly to it’s popularity and exposure. It is because of this that search engine optimization contributes greatly to the value of your particular domain name. Buyers will always be more willing to purchase domains that have higher rankings with search engines due to the higher potential for return on their investment. Alternatively, domains with abstract names can even sell for thousands of dollars based solely on their SEO attributes. One other factor in determining the value of a domain is the amount of incoming links a domain has. The more incoming links to a site, the easier it is to gauge the popularity of a website and thus it’s ultimate value.

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Basic Economics

While a value can be placed on a domain by the seller, it will ultimately come down to the highest bidder. Even after considering all of the factors listed above, it may be discovered that a domain with what seems to be little to no value can sell for one that is estimated to be worth thousands, all based on the name of the domain. Even though you may feel that your domain is worth little to nothing, it is important to remember that beauty is in the eye of the beholder. And where you view a domain as worthless, others will see a gold mine and be willing to pay good money to obtain said domain.

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