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Understanding The Fundamentals Of Your Domain's Value

by Bruce Lawson

Whether you are buying or selling a domain name, you need to understand the value of that domain. If you don't have a full understanding of the domain name's value, you might find that you are either overcharged or underpaid for the domain, depending on which side of the transaction you're on. Here are a few things that you need to know about domain name values and how to evaluate them.

Domain Authority

Domain authority is a factor that affects search engine valuation as well as general domain value. It's calculated based on the age, size, and overall popularity of the domain. The age is calculated based on when the domain was registered. The traffic that the domain sees is a factor in its popularity. The more traffic and ongoing activity the domain sees, the greater the domain's core value.

Domain Reputation

The overall reputation of the domain is another important consideration. If you are looking at a domain that is established, has been deemed as a legitimate go-to source for information, and is respected, it's going to be valued much higher than a domain that's brand new, struggling for authority in its industry, or already discredited or blacklisted by the search engines, that will devalue the domain.

Domain History

The history of the domain name can also affect its value. If the domain name has ever been used for anything questionable, morally grey, illegal, or otherwise unsuitable, that can have a lasting effect on your ability to rebuild the domain into something legitimate and successful. Take time to understand the history of the domain before you decide whether or not to purchase it or how much to charge to sell it.

Domain Status

The current status of the domain is also important when you're deciding whether to buy or sell it. If the domain is expired, it's important to know why it was left to expire. This can tell you a lot about whether the domain is worth investing in and building something out of.

If the domain is still active and you're considering buying it, you should look into how well it's performing, what it's being used for, and why the owner is selling it despite the fact that it's still active and driving traffic.

The more you understand about the status of a domain and its history, the easier it is to determine an accurate domain valuation. Contact a domain name value specialist to help you assess the domain you're working with.