How much is my domain name worth? A beginner’s guide to assessing domain name value

Whether you’ve been casually buying and selling domains for years or you’re interested in selling your first one, you have a critical question to answer before you put your digital asset on the market: “How much is my domain name worth?”

 

The worth of your domain depends on several variables—factors we’ll break down in this guide to provide a comprehensive understanding. Read on to understand which characteristics impact domain value, how to perform domain appraisal, estimate value, and more.

 

What are the factors that determine domain name value?

How much is my domain worth? It depends. 

While high-quality domains have sold for tens of millions of dollars—ai.com, for instance, sold for $11 million in 2023—not every domain is this valuable. (Marketing91, 2024) Domain value can greatly vary depending on various elements such as demand and extension.

 Let’s explore two of the most critical factors that can impact the value of a domain. 

Popularity and memorability of the name

One‑word .com domains continue to command the highest prices—even compared to two‑word names. Recent high‑dollar sales include:

•  LasVegas.com sold for $90 million in 2005 
•  CarInsurance.com sold for $49.7 million in 2019 
•  Insurance.com sold for $35.6 million in 2020 
• VacationRentals.com sold for $35 million in 2007 
• PrivateJet.com sold for $30.18 million in 2018 
•  Voice.com sold for $30 million in 2019 
• Chat.com sold for $15.5 million in 2023
• NFTs.com sold for $15 million in 2022
•  AI.com sold for $11 million in 2023

What do all of these domains have in common? 

• They’re short – Simply put, short domains are easier to remember. 
• They’re descriptive – Each of the domains above clearly describes the content most likely on each website, providing valuable information to site visitors. Consumers know what they’re going to get before they click these links. 
• They’re easy to spell – Each of the URLs above includes a common English word. 
• They include .com – Newer, more descriptive top‑level domains (TLDs) are rising in popularity, but .com remains the most recognizable and trusted extension on the web. Consumers often perceive shorter, keyword‑rich .com domain names as more credible—and are more likely to click them than longer, less familiar TLDs.

Domain length and keyword relevance

When business owners use a domain name search tool, they’re usually looking to find and claim web addresses that are:

• Short
• Relevant to their brand
• As close to their ideal web address as possible

If a domain includes a keyword that’s relevant to a valuable or up-and-coming industry, this can increase its domain value. 

Just return to the list above for some examples: Consumers using a search engine to look for information about Las Vegas, insurance, hotels, or shoes are likely to click on a domain that includes the keyword they’re searching for. This understanding of keywords in context can provide an edge in the digital marketplace.

Speaking of search engines, domains also have the ability to influence market positioning indirectly by impacting search engine optimization (SEO) rankings for websites. While including a keyword in your domain doesn’t automatically increase your ranking, consumers searching for a keyword might be more likely to click a URL containing that keyword. This, in turn, would boost a site’s popularity (and its rank) over time. (Search Engine Journal, 2020)

What tools can be used to estimate domain value?

If you’re new to domain investing (or you’ve been approached with an offer to sell a domain for the first time), don’t worry—there are online tools available to help you estimate the value of your digital asset. Conducting thorough research into domain worth and traffic is important for accurate valuation.

Domain valuation services 

Depending on the expected value of your domain and your market strategy, you could rely on professional valuation services from domain experts. However, you can also use free (or affordable) online estimating tools like:

• Estibot – Estibot is a free domain appraisal tool; users engage with it for estimates over two million times each day.
• Namebio – Namebio (which is also a free service) offers a list of comparable, recent domain sales to aid your decision-making.  
• Humbleworth – Humbleworth is a free, AI-powered domain valuation estimator offering value ranges and sale probabilities. 
• SEMrush Domain Overview – SEMrush lets you assess a domain’s SEO value by showing its authority score, backlink profile, organic‑search traffic trends, and top keywords. 

What price should I set to sell my domain?

When determining the right price for your domain, adopt a flexible, market‑driven strategy:

• Use multiple valuation tools. Combine several online estimators to establish a realistic price range—this gives you data points for negotiation and prevents overreliance on any single tool.
• Get expert input. Consult seasoned domain brokers or appraisers to validate your estimates, recommend advanced appraisal services, and advise on likely sale timelines.
• Monitor market signals. Track comparable sales, industry trends, your site’s traffic metrics, and any offers you receive—these indicators will help you gauge demand and fine-tune your price.
• Stay flexible with pricing. If your domain isn’t selling or buyer feedback suggests it’s overpriced, be prepared to adjust your asking price; fluid pricing often leads to quicker sales and smoother negotiations.
• Reevaluate regularly. Schedule periodic check‑ins—based on time on market, evolving trends, or fresh data—to update your price and strategy, ensuring your listing remains competitive.

 

How do I sell or buy domains?

Let’s break down the steps you’ll need to increase the market value and make money on your digital asset. 

Platforms for buying and selling domains

First, join a marketplace designed for domain transactions—Sedo, Afternic or Flippa are good examples. Create an account, complete your profile and add any payment details.

Determine how you want to sell your domains based on your market analysis. You have a few options:

• Instant purchase – This is when a potential buyer can purchase your domain at a fixed price instantly. If you’re looking to sell a domain quickly (but for a potentially lower price than you might at auction), this is a strategic option.
• Request offers – Instead of listing a domain with a fixed price tag, you can tell potential buyers to make offers. While this could spark a negotiation process, it’s a good way to get a feel for the prospective value of your domain. 
• Auction – You can also buy and sell domains in conventional auctions; your domain will sell to the highest bidder during the auction period, maximizing potential value. 
• Lease‑to‑Own (LTO) – A hybrid sales model that combines a “buy it now” price with the flexibility for buyers to submit offers or choose a payment plan. You set a down payment and installment schedule (for example, 6–36 months), and once the initial payment is made, the domain is placed in escrow while installments are automatically collected. You can offer early‑payoff incentives, and if a buyer defaults, paid installments are forfeited and the domain is relisted. Many sellers find LTO broadens the buyer pool and can help move inventory faster—domains sold via LTO command on average 35% higher sales prices than Buy It Now listings. (Afternic, 2024)

Once you agree to the terms, your chosen domain sale platform will assist in processing the payment and transfer ownership of your domain to the buyer. 

Negotiation and pricing tips

As you price your domain and negotiate with prospective buyers, remember:

• TLDs can impact value – Depending on your target audience and the domains in question, TLDs have the potential to significantly impact value. In the tech industry, for instance, .io is a highly sought-after TLD. (Forbes, 2024)
• Negotiations don’t guarantee a sale – If a negotiation process has dropped your prospective sale price too much for your comfort, you can back out. As long as you haven’t signed on the dotted line, you don’t need to agree to any sale terms you don’t like.
• Not all buyers will negotiate in good faith – Always conduct your sale through a reputable third‑party escrow service (for example, Escrow.com) so funds are held securely until you’ve transferred the domain. Stay vigilant for both lowball offers and deals that seem too good to be true.

 

Common myths about domain value

What else should you know before you venture into the world of domain resale? Let’s debunk some common myths. 

The reality of domain resale

While we highlighted a few high-dollar domain sales above, the reality is that these represent the extreme high end; most domains sell for more reasonable rates. Unless you’re prepared to understand and research heavily in high-dollar domains, don’t expect to reap high revenue on the reselling market overnight. 

In addition, the value of a domain can be highly subjective. What one buyer considers high-value, another might not see as a highly sought-after domain. This is why it’s so critical to get as many opinions as you can about the value of your product: Use multiple digital tools, ask human experts if you can, and listen to feedback from the marketplace. 

Misconceptions around expensive domains

Many domain sales happen privately. Brands approach rival companies and individuals, make an offer for a domain, negotiate, and exchange assets every day—often without ever setting foot in the digital marketplace. However, brushing up on current market data and trends can help you identify valuable opportunities.

At the end of the day, domains are just like any other investment: (Investopedia, 2024)

• You get what you pay for – In most cases, the value of your domain portfolio will mostly correlate with the price you paid for it (unless you significantly overpay).
• You shouldn’t spend anything you can’t afford to lose – Like buying and selling stocks, buying and selling domains is often a gamble. Factors that influence both the stock market and the domain market are (unless you’re influential in the industry) mostly out of your control. 
• Good luck is possible – Maybe you will buy an affordable domain tomorrow that becomes a hot ticket item in three years—anything is possible. However, remember that most domains sell for reasonable, average prices. 

 

Maximizing the Value of Your Domain Portfolio

Domain valuation blends appraisal data, market comparables, traffic metrics, and expert insight to arrive at a realistic price. Whether buying or selling, use reputable marketplaces and escrow services to safeguard your transaction. Keep your expectations grounded—most domains sell for modest amounts—and revisit your pricing strategy and portfolio mix regularly to adapt to market shifts and capture value over time.

 

 

Sources: 

 

Afternic. Lease to Own Has a 35% Higher Average Sales Price. https://blog.afternic.com/lease-to-own-asp/ 

 

Forbes. The Future of .io Domains: Critical Insights for Tech Leaders. https://www.forbes.com/councils/forbestechcouncil/2024/11/06/the-future-of-io-domains-critical-insights-for-tech-leaders/

 

Forbes. Website Domains: Finding the Right Fit for Your Personal Brand. https://www.forbes.com/councils/forbesbusinesscouncil/2024/03/25/website-domains-finding-the-right-fit-for-your-personal-brand/

 

Marketing91. The 20 Most Expensive Domains Names in 2025. https://www.marketing91.com/most-expensive-domain-names/

 

Search Engine Journal. Does Domain Extension Affect SEO? Google’s John Mueller Explains. https://www.searchenginejournal.com/does-domain-extension-affect-seo/431956/

Investopedia. How to Make Money with Domain Names. https://www.investopedia.com/financial-edge/0412/how-to-make-money-with-domain-names.aspx