There are a finite number of domain names, which makes a domain’s value increase over time. For this and other reasons, it is often hard for a casual observer to guess a particular domain’s value. There is a whole niche industry of domain evaluation, though, that can help you assess the value of a domain..
Who Evaluates Domains?
Domain evaluation is not an exact science since market conditions and trends often influence a domain’s value and these are not static. Evaluating domain name prices requires extensive research and forecasting (which varies depending on the domain). Domain sellers should seek the expertise of companies like Afternic that offer domain appraisal services to make sure they are not asking too little or too much for their domain name.
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How exactly is a domain’s worth measured?
There are several criteria that impact a domain’s worth or potential. The first is how old a domain is. One of the bases for Google’s search engine algorithm is to evaluate a domain name’s age. Mostly, older domains give search engines an indication of longevity and thus, are given a high relevancy score from Google. In a domain evaluation, one needs to consider two things about a domain’s age — the age of the website itself and the duration of a domain’s registration.
The age of a website is important in domain evaluation because it determines how long its content has been online and how long the seller has been promoting the website. The duration of domain registration measures the actual date a domain name was registered and how long it has been registered.
Other important factors considered in domain evaluation are: market potential, memorability or its level of recall, keywords, length and spelling, among others.
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