Domain valuation: How to price and sell domains

Have you ever wondered what your domain name was worth? It’s an important question that’s worth answering. Whether you have a domain that’s about to expire or an eager buyer contacting you out of the blue, knowing how to price and sell domains is incredibly important.

Are you sitting on a unknown fortune like some antiques at a roadshow? Do you have buyers interested in your domains? Are you an active investor with 600 domains, but simply don’t have the time to manually update and research pricing each time the market shifts? From active domain investors to one-off buyers and sellers, there’s a domain valuation tool for you.

How to price and sell domains

Price And Sell Domains Sold
Photo: Diana Parkhouse via / CC BY

Up until now, you had a few standard options for pricing and selling domains — you could ask several experts in the field and get some feedback on the value of your domain, you could use some of the free or paid online appraisal tools, or you could guess.

Yet, even if you happen to know several industry experts, you’d still run into problems. Scheduling a time to talk, going back and forth over emails — let alone hoping they’d want to sit down and appraise several hundred domains for you. You can see the holdup. There are a number of automated appraisal tools available that can value in bulk, but most would agree that there’s definitely room for improvement.

Since each domain is unique (e.g., is different from or in value), the task to differentiate the nuances of meaning can be daunting for a machine to parse.

Thankfully, with the use of some of the latest technology and a wealth of sales data as the leading marketplace for domain names, GoDaddy has been able to come up with a new tool that we feel is the market leader in evaluating and appraising domain names. Using machine learning, we look over millions of domain name sales and come up with a unique value for your domain. It’s almost like having access to your own domain expert or antique appraiser right from your computer.

The future of domain valuation

Price And Sell Domains Graph
A great domain valuation tool can make a huge difference.

GoDaddy’s new tool can remove a lot of the guesswork associated with valuing your domain names. Jason Ansel, creator of our soon-to-be-released domain valuation tool, had this to say:

“Measured by mean error, the new GoDaddy model is 1.3x better than the best of the four human experts, 1.5x better than Estibot, and 1.6x better than the average of all four human experts.”

Having tested my fair share of automated systems before, I was initially skeptical; but after using this tool, and seeing the above listed results, it was clear — the future of domain valuation is right around the corner.

While this tool is not yet available, we’ve been avidly testing it among beta users and select customers to work out the kinks. So far, the response has been positive. From increased sales to more accurate valuations, customers are having more success with pricing and selling domain names. We’ve also had success stories from buyers and sellers who used the tool to help find a good market price both parties could agree to.

Research and market awareness continue to be important, but using the new domain valuation tool could be another valuable arrow in your quiver for making money with your domains. If you’d like to be included in our trial emails using the tool to help identify names on our expiring auction, please contact us. Furthermore, we could assist you with selling and listing domains on

In conclusion

At the end of the day, a domain name’s value is what someone is willing to sell it for. We just strive to provide fair market value (i.e., what we think the domain name should sell for in an open market) so you can make educated decisions. How you price and sell your domains is entirely up to you, but in the very least go beyond guesswork and seek out expert advice when possible.

Originally published at Garage.

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