Domain Valuation: How to Value a Domain
There is no scientific method for the valuation of domain name. However, there are some factors to determine the estimated value of your domain name.
Technically, there are few factors, which help in determining the value of Domain Name Registration.
One of the most important factors for valuing the domain name is the extension. Extension always comes at the end of domain name. Such as .in, .com, .net, .edu, .org etc. Among them, .com has the highest value. Nowadays .mobi extension is gaining tremendous popularity. It is an extension for the mobile contents. Some countries have specific domain names like- .in for India, .ca for canada. Countries extensions are very important and esteemed and therefore command high prices. Similarly, you must have heard about .tv extensions. These extensions are use for TV, which are facilitated through internet.
Secondly, the factor, which matters for valuing domain name, is the – Number of Words. Single word domain, without any extra word or abbreviations is extremely valuable. Single word domin in .com extension can be very expensive.
Two words domain are also valuable but not as compare to single word domain.
Domain names having abbreviations mark, excessive characters, misspellings and other quirk, are of very low value. Also including those domains, that has phrases, which are already trademark of some other company, has the lowest value. Because there can be trademark issues.
The main thing, which regulates the value of the domain, is the monetization. Generally domain name which has the highest value in terms of sale is related to – sex, finance, health and entertainment.
Industry related domain, which has poorly monetized in the web, would definitely have the low value.
Common domain name are more popular than uncommon one (Generic Value).They are highly monetized and are of immense value. The reason behind it is they do not include particular name, place or thing but they use common words.
Number of letters in a domain name is also very important. It affects the value of the domain. For example, a domain name having only three letters is very valuable even if they don’t have any meaning (Three letter.com). Similarly, it goes with four letters and five letters. However, as the letter of the word increases it should be pronounceable and have some meaning. Four letters and five letters words are also very valuable. As you increase the letter, then the focus of the value is given on number of words.
The branded domain name will definitely have the highest value. Domain names, which are easy to remember, easy to type in has the good value. The value of domain name also depends upon the size of productivity of the market.
Clearly, there can be countless factors for determining the domain value. Above are some of the factors, which may help you in determining the value of domain.
This entry was posted on Wednesday, April 13th, 2011 at 12:10 pm and is filed under Domain Name Registration. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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