Assessing a Domain’s Value

There is lots of money to be made in domain names, but not just any domain name will do. There are certain traits that make some domains more valuable than others. Before you get started flipping domains, it is important to know how to spot the most valuable ones.

Here are some things to look for:

• A good domain extension – A domain extension, or top level domain (TLD) is the part at the end of the domain name. Some of these are .com, .net, .org, and .info. In the beginning of the Internet there were few TLDs, and there were restrictions on who could register them. Today, there are several options that are available to anyone. But the most desirable, and hence the most valuable, is .com.

• Length – The best domains are short and to the point. There is great demand for one-word generic domains, such as money.com. But there is a very good market for two- and three- word domains as well. The number of characters is somewhat important, with fewer being better.

 

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• Keywords – From a search engine optimization standpoint, keywords are very important in a domain name. These are words that describe what a site is about, and having them in
the domain name can help increase search engine rankings. Domains that have keywords in them in a logical way can also be targets for type-in traffic, increasing their value that much
more.

• Easy to spell and remember – The easier a domain name is to remember, the more valuable it is. Webmasters like to have web addresses that their visitors can recall without writing them down or bookmarking them, because it increases the likelihood of them coming back. It’s also important for a domain to be easy to spell. Those that aren’t may lose traffic
and be prone to spoofers who register domains that are misspellings of the correct name.

• Traffic and related factors – This applies only to domains that have been previously registered. It is a very important factor, as it is one of the primary reasons that webmasters look for expired domains. It takes a substantial amount of time to build traffic, and if a domain comes with traffic already built in, it eliminates a lot of work. Inbound links, Alexa rank, PageRank and directory listings also add lots of value. For domains that do not have traffic, you can sell them at a relatively low price or develop them to build traffic before you sell.

So the perfect domain would end in .com, consist of one descriptive keyword, have tons of traffic, and be easy to remember. As you might imagine, virtually all such domains are taken. But that doesn’t mean that you should just throw in the towel now. Domains that do not match all of the criteria mentioned above perfectly are certainly worthwhile.

If you’re considering paying a large amount for a domain name, it is probably a good idea to have it appraised. It’s not terribly expensive, and it can provide valuable insight into the domain’s worth and future potential. If you can get the domain name at a bargain, however,
looking at the factors above can give you a good idea of whether or not it is worth purchasing. Then you can save the appraisal for when it comes time to sell.

 

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This post was written by admin on February 21, 2010

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