Domain Name Appraisal Estimator

How are Domains Appraised?

Unlike valuing a website (which is based on monthly revenue), domain appraisal is an estimation of the underlying digital real estate. Even if the domain has no website and no traffic, it can be worth millions of dollars.

The 4 Rules of Domain Valuation

1. Dot Com is King

A one-word `.com` domain (e.g., `cars.com`) is worth tens of millions of dollars. The exact same word on a `.net` might be worth a few thousand, and on a `.biz`, it's worth essentially $0. Recently, `.ai` and `.io` have gained massive traction in the tech startup space, fetching premiums up to $100,000+, but they still pale in comparison to the mighty `.com`.

2. Length Matters

The shorter the domain, the higher the value.

• 2-Letter .coms: (e.g., `fb.com`) Ultra-rare. Worth $1M to $10M+.
• 3-Letter .coms: (e.g., `xyz.com`) All 17,576 combinations are registered. Worth $50k+ minimum.
• 4-Letter .coms: Pronounceable ones are worth $2k to $10k.
• 15+ Letters: Generally worthless unless it forms a highly specific, high-intent phrase (e.g., `carinsurancequotes.com`).

3. Dictionary Words

A single dictionary word `.com` is the holy grail. It provides instant brand authority. A two-word combination (e.g., `BlueSky.com`) is valuable. Three words (e.g., `MyBlueSkyApp.com`) has almost no aftermarket value.

4. The "Radio Test" & Hyphens

If you say your domain name on the radio, will people know how to spell it? This is why numbers and hyphens destroy domain value. If you say "Best Cars 24", the user doesn't know if it's `best-cars-24.com`, `bestcars24.com`, or `bestcarstwentyfour.com`. Domain investors avoid hyphens at all costs.