I am often asked how do you value a domain? How much is it worth? This is both on the selling side and the buying side.

There is so much that goes into this “formula” due to what exactly are you buying … are you buying just the domain? The design? The traffic? The customer list? Those are all key factors in determining the actual worth of the domain and they can get pretty complex.

However, there are two sites I use in order to get a good “measure” of the domain.

Buying a Domain?: Use DNScoop.com. They tend to “under value” domains and use a formula based on traffic, PageRank and links to determine value. For example, they value my SEORevolution site as worth just under $6,000. Not much.

Selling a Domain?: Use BizInformation.org. They tend to “over value” domains and use a system similar to DNScoop. How much do they value my SEORevolution site? $1.5 million.

As you can see, there is a big difference between the two and whether you are buying or selling, you can use each service to leverage your negotiation.