The quick answer is there is no simple answer. However, speaking with a domain name broker can help answer many questions such as:
- How much do you think a buyer will pay?
- Why did other domain names sell for so much?
- What if I auction the domain name?
- Is the domain name a good investment?
A good domain name broker can not only help you understand value but also may be able to identify other available domain names of similar value or other potential buyers.
Note that if your domain name is considered super premium (one word dictionary .com, two/three letter .com or two/three/four numeric .com) then its imperative you look at current sales or speak with a broker. Most anybody who owns these type of domains typically has a floor value in mind since they have likely been offered a great deal but premium domains continue to rise in value so you need current information – not a valuation based on offers made a year ago.
Also remember that 98% of domain names have no liquid value. This means the words you buy today (thinking they are great) likely have zero resale value unless you get an inbound lead. Yes, almost every domain name registered today is not valued high enough to liquidate for cash tomorrow .
Some of this 98% however were worth nothing yesterday and over $100,000 today. That is the gambling side of domain name investing.
If you want to know how much a domain name is worth before you buy then understand the LIQUID value of the domain name – the value if you needed to sell today. Most people will never answer this question correctly so learn from people who have been around. There are many who have already lost millions learning what not to do. Understand the word “liquid” otherwise you are just gambling.