The value of a domain name would depend on who you ask. Check out Ebay for instance and scroll down the page to see what the prices are and their associated domains are.

Currently there is no standard for appraising the value of domain name by which all can agree on.  There is no Kelley Blue Book for domains where anyone can look it up just like looking for a value on a used automobile.

I have personally received appraisals with the values listed from $5.00 to over $13,000.00 for a single domain name; hence where the million dollar domains arise.

Not everyone is asking for one million dollars, however many are way over valued. Some asking thousands of dollars for domain names which may be worth $10.00 (if that) based on a realistic concept of traffic, advertising Pay Per Click (PPC) price…

So how do you know the value of a domain name?

First, you have to ask yourself what is the domain name worth to you and how much are you willing to pay for it? In short a domain name is only worth what another is willing to pay for it.

There are a few items to check.

Is the domain easily brandable?

Is it short or shorter than an existing domain you own?

Does it pass the radio test? In other words if you heard it on the radio would you be able to go directly to the website. For example, Homes4Sale.com would fail the test as many would be confused and will type in HomesForSale.com

What is the quality of the keywords?

Is the domain name a highly searched key phrase in search engines? If so you may rank high in them as well as receive free type in traffic. This would add to the value.

What is the Pay Per Click (PPC) cost on advertising the key phrase? If it is high than this could save you money on your advertising budget, hence the purchase of the domain might well be worth it and could be paid for out of your advertising budget while saving you and your company money

When searching for a premium domain name for sale, try finding a wholesaler of domains. Here is where you will find the best prices as they are in the business of flipping domain names. Rather than hang onto a domain trying to get top dollar for a single domain name, they will offer at a much lower price. They realize they can make their money in volume sales!

Don’t be afraid to counter offer on the asking price as long as it is reasonable. If it is not, your email will most likely find its way to the trash bin! After all, if dealing with wholesale pricing already, you are not going to get the domain seller to move much off the asking price if at all.

One way to insure you are not over paying for the value of a domain name is to get a domain name from a reputable domain service such as Order Your Domain, whether for new registrations and web hosting or premium domain names for sale.

As for appraisals here are a couple free places to find an estimated value for your domain name. The latter is probably more towards the correct ballpark.

Estibot

Valuate

Good Luck in Your Online Adventures!