Lesson 4: 7 factors that make a domain name worth a lot of money
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Hey, Domain Hunters! 👋
Here are seven reasons why some domain names might cost a lot of money.
Length
Short domain names are very valuable.
It’s extremely difficult to buy a 3-letter dot com under $10,000.
People find it easier to remember and type. So, the fewer letters a domain name has, the more expensive it usually is.
Example: xyz.com
Memorability
If a domain name is easy to remember, it's more valuable.
This means it's simple, catchy, and maybe even fun to say.
A memorable domain name sticks in your head, making it more likely for people to visit the website again.
Examples: ButchersDaughter.com, SEOisDead.com
TLD
The TLD is the part of the domain name that comes after the dot, like ".com" or ".net".
The ".com" TLD is the most popular and valuable because it's what people think of first when they enter a website address.
Brandability
A brandable domain is versatile and can accommodate the business as it grows or shifts focus. It should not be so specific that it limits potential expansion or diversification.
Names that evoke positive feelings or associations are more likely to be embraced by the target audience. The emotional response can be a powerful part of a brand's appeal.
A brandable domain name stands out from competitors. It's unique and not easily confused with other names, making it recognizable to consumers.
Example: IvyPanda.com, Pitchfork.com
Market Trends
The recent boom in artificial intelligence (AI) offers an example of how market trends can dramatically influence the value of domain names.
This has led to a heightened demand for domains containing keywords such as "ai," "machinelearning," "deep learning," "robotics," and similar AI-related terms. These domain cost a lot less a few years ago.
Companies and startups must now consider how their domain names relate to emerging technologies as part of their branding and online presence strategy.
As a domain investor you should follow tech trends to predict what niches might boom in the future.
Commercial Potential
If a domain name seems like it’s easy to develop a business there, for example e-commerce, is probably worth more.
This could be because it fits well with selling products, offering services, or having advertisements.
Domain names that sound professional or have a clear use in business can be worth a lot.
Example: CarParts.com, EasyLoans.com
Historical use and traffic
A domain name with a history of getting a lot of visitors or being used for a well-known website can be worth a lot.
And even better - a website that is generating revenue makes the domain be worth many multiples of a typical valuation.
If there are strong backlinks leading to the domain that’s also a positive signal.
Cheers,
Amber