How to estimate the value of a domain name? Is there a universal formula for domain name valuation?

There are many factors that go into evaluating a domain name's value. Besides accidental factors like a terminal or a hotspot, there's also a rough way to estimate a domain name's value. Let's discuss how to estimate a domain name's value.

How to estimate a domain name's value?

There are several generally accepted and appropriate criteria for estimating a domain name's value:

1. Domain Name Meaning and Homophonic Meaning: Whether a domain name is phonetic, abbreviated, or numeric, the better the meaning or homophonic meaning, the more valuable it is. For example, a domain name with four initials is more valuable than a domain name with four letters because it carries more meaning.

2. Domain Name Length: Shorter domain names are generally easier to remember, and shorter domain names are more scarce, so shorter domain names are generally more valuable.

3. Suffix Type: Generally speaking, for the same prefix, a .com domain name is more valuable than other suffix types.

4. Popularity: If the domain name is already well-known, or its meaning is well-known, such a domain name often generates traffic and is therefore more valuable.

5. Brand Relevance: Brand relevance is similar to what we've discussed with domain names. If the domain name is directly related to the domain name, the stronger the domain name, the higher the domain name's value. Even if the domain name isn't related to the domain name, some imitation domain names, such as alinainai and aliyeye, are also highly valuable. These domain names, for example, capitalize on Alibaba's popularity and command high prices.

6. Other factors include registration age, organic traffic, traffic volume, penalties, backlinks, index count, and other additional factors. There are many factors involved here; older domain names with high index counts and high traffic naturally have higher value.