The value of the domain name is like the value of real estate. If your real estate is valued at 100,000 this year it will be at least 110,000 the next year. This is a good 10% increase. It applies the same to a Domain name. The older the domain the value increases, not 10 % but at least 100% every year.

A domain purchased at 10$ this year could be taking a value chart as below

On completion of the 1st year 20$
On completion of the 2nd Year 40$
On completion of the 3rd Year 80$
On completion of the 4th year 160$
On completion of the 5th year 320$
On completion of the 6th year 640$
On completion of the 7th year 1280$
On completion of the 8th year 2560$
On completion of the 9th year 5120$

On the 10th year your domain is valued at a mighty 5120$.

But mind you, you could be holding a domain aged 20 years but the value would be just 20$ if you have invested in the wrong domain. You could compare this as a house bought in the middle of a desert with the nearest gas station 100 miles away.

It is very essential to know the value of the domain with regard to various aspects apart from the age. The following factors determine the value of a domain name. Go through each one of them and asses the value of the domain

1. Age
2. The TLD (.com, .net, .org, . us, .co.uk
3. Keyword in the domain name
4. Page rank the domain has acquired over the period of time
5. inbound links (Its most likely that there have been inbound links if the domain was active
6. Alexa Ranking

Rajeev Sahadevan is the owner of a website design company in India. He has over 30 Website businesses online ranging from "Internet Business Review" to Real Estate in India. With experience in Marketing on the web and excellent creativity He has survived the Internet Business for a decade.