What makes a Domain Name Valuable

There are a lot of factors that make a domain name really valuable.
Generic / Dictionary words command the highest premium.

But here is a list of 10 domain appraisal parameters which are really important :

10. Search Engine Friendly :
Would a search throw up the domain intrinsically.
For example – if the exact search term exists in the name.

9. Industry Strength :
Is this targeted to a niche or a mass market?
A niche market product might actually have a higher value than a mass market product.
But it basically depends on the prevailing PPC rates for that market.

8. Sales Value History :
Has this domain ever earned any revenues?
How long has it been online? Longer the duration of the registration, better it is.

7. Market Potential :
Can you make revenue by advertising this?
Would it generate enough revenues if exploited?

6. Linguistically Viable :
Can the domain be pronounced?
Is it easy on the ears?

5. Brand Recognition :
Can it be created for this domain?

4. Recall Value :
If you can’t remember it, forget it.

3. Length :
Shorter the better
Chew on this, there are NO 3 Letter .coms available.
All 3 letter word domains for .in, .org, .net, ,biz, info, .us,
in fact most TLDs, are also sold.

2. Extension :
.com, .net, .ca, .in, .co.uk, .co.in, .com.au, .tv, etc.
.com domains are undoubtedly the most expensive.
speciality extensions follow.
3 Letter .coms now go routinely for $50,000+

1. Current Revenue :
Earnings/Parking/Affiliate/Other
Nothing better than current income, though not if you are spending thousands to start with.

So is there a formula for this? Or an appraisal system that is perfect?
Short answer is NO.
There is no hard and fast rule, one man’s poison is another man’s drink.
A good way to gauge the inherent worth of a domain is to auction it or invite offers for it.

Holding on to certain types of domains actually increases their value,
others might just cause holes in your pocket.

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MediaWizard

Samit Madan is an advertising professional with over 25 years of experience. He's also known as the MediaWizard due to his expertise in all related industry verticals including design, promotions, brand development, corporate communications, printing, web development and search marketing. He currently heads MediaWiz, a leading Media Publishing and Services Company.

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6 Responses

  1. Abhinav says:

    Cool stuff on this blog really.
    Good job, Samit Sir :)

  2. aporeibrirurn says:

    Lots of of folks write about this matter but you said really true words.

  3. Torrie Martos says:

    Wow that is a great blog.. I’m love it.. good post

  4. Buddy says:

    Great site. Many useful information here. I’m sending it to friends!

  1. December 14, 2009

    [...] specially the two or three persistent guys who insist on using you as a their personal ‘free domain name appraisal‘ [...]

  2. July 27, 2012

    [...] It is very interesting to see the responses to this most basic of questions about domain investment. The confusion over the correct answer to this question is exactly why 95% of all registered domains will only be loss leaders. Here's something I wrote a while back that should help you answer this for yourself: http://www.mwzd.com/domain-names/wha…name-valuable/ [...]

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