Although you cannot expect to get the exact value of your domain name as that of your physical asset, you can definitely get a close estimate to know the worth of your asset. The problem with the non-accurate estimates is that you don’t have a formula or expression using which you can expect your asset value to be determined. It is a subjective concept, which can be given different values based on the understanding of the evaluator and various factors that can play a role in it. Usually, good evaluation is the one in which the various expert evaluators can provide the same range of value.
In the case of domains, the reference sites use the ballpark estimates to find the right value of your asset. Again, it is not 100% accurate but it is as near to accurate as it can be. Apart from the other features, the demand and supply side for the domains is also considered while making this analysis. So, overall, you can expect these value rate guesses to be more or less covering all the dimensions that are important in a sales purchase dealing or valuation of an asset.
Algorithms For Domain ValueIn reality, there is no data available regarding the willingness of the people to buy a particular domain, so algorithms have to be used in determining this aspect. Now you’ll be wondering, does this process really need some time or can it be done instantly. The answer lies in the algorithm used. Some of the reference websites make use of the keywords metrics, previous sales generated and the cost per click statistics on the website to be considered in the algorithm calculation. With all these values, such websites generate the value of your domain. There is only one problem with the use of this algorithm. It does not account for the traffic on the website or the actual content that is available on it.
In case your website or domain name has no considerable content on it or it is not being updated to generate traffic, then this way is one of the best ways available to find the value of your website. Suing this value, you can actually get an overstated domain price. The domain price is said to be overstated because, in reality, you must be aware that the traffic element is quite important and without much traffic, the worth of domain name is not much high.
In case you are looking for the value of your traffic and the appraisal of your content too while determining the price of your domain, then you must go for some of the value-based indicators present in this regard. Alexa traffic rank, back-links, and Google Page Rank are some of the websites that can provide you with such value for your domain.
What To Consider Before Buying Or Selling The Virtual Asset?Although with the level of information that you can get online, you don’t have to worry about these aspects as most of the valuation websites account for these aspects. However, if you want to know some of the factors that can play an important role in this regard, then we have provided you with the following list.
• Number Of Backlinks
• WHOIS Information
• Income Reports
• Traffic Reports
• Search Engine Optimization
• Link Analysis
• Server Information
In addition to these, various other factors can also play their role to some extent and the more the knowledge you have about these factors, the more it will be beneficial for you in understanding the valuation that your domain name will receive.
Another important thing here is that if you are going for the free domain name appraisals, then you might not be expecting the 100% accurateness in calculating various factors and providing you with the valuation of your website or domain name. But these free applications can give you enough information and a close value that you can make an educated guess about the possible value of your website or domain name. Additionally, if you are just looking for the general valuation of your virtual asset rather than selling or purchasing them in reality, such an estimate is usually okay and you don’t have to probe deeper for getting the exact estimate.