Brandable Domain Names & Creative Business Names, a Look at Valuation Factors.
Domain appraisals are typically misunderstood and confusing, especially when looking at creative business names (e.g. brandable domain names)
Although there is much more that goes into brand and domain valuation, the following 10 items will make this process understandable, accessible, and will empower you to research and evaluate creative business names on you own (at least preliminary).
- Top Level Domain: The top level of a domain is the extension that it ends in. Some domains can be worth more than others solely based on the type of extension they end.
- Number of Characters: Statistically speaking, the amount of characters in a domain name attribute to its value. Domains with fewer characters are often easier to remember.
- Search Engine Popularity: Search engine popularity is the number of searches that relate to the keywords in your domain. The more domain keywords, the more prospective visitors an established site will have.
- Commercial Value: Domains that can be used for commercial purposes such as internet commerce, advertising, and all types of businesses are very easily marketable and have more value.
- Market Demand: If there are many people out there that can use your domain for their website, your domain has a lot of demand. Your domain will have more interested buyers when it is for sale.
- Language Terms: When a domain uses actual words in its spelling the purpose of the website is clearer. This makes it easier for prospective traffic to find and remember your website.
- Traffic Rankings: The more traffic a domain receives, the more valuable it is. Domains that have increased traffic are excellent candidates for easily making further amounts of money.
- Registration Length: Domains registered for several years are usually more well-known than domains that were registered for the first time ever just a couple days ago.
- Name Popularity: Popular names such as web 2.0 domain names are often very popular. These domains can be used for a wide variety of website types therefore they have a large targeted audience.
- Other Basic Factors: These are the other small important factors that add up to your domains value. These small factors include blacklisting, response codes, and your domain registrar.
Creative Business Names, Brandable Domain Names, Keywords, +
Domain Appraisal Guide, tips to ensure you are making an informed domain name purchase.
- Start with enough capital to effectively negotiate: Premium brands are not cheap and, as you can imagine, owners receive a constant stream of inquires offering penny’s on the actual value. premium domain owners and brokers quickly filter and ignore these.
- Never Over-Pay/Under-Sell: Understanding the basics of pricing is critical, use our domain appraisal guide above as a guide, but having a professional broker work with you or provide an appraisal is advisable.
- Valuable Domains are held as investments: The market value for premium brand-able and keyword domains is constantly increasing, almost exponentially, understanding the mindset of the person you are looking to buy from is important.
- Never buy or sell through a forum, as a beginner: Unregulated or managed forums are a bed of scams in the domain world as it is across the web. Be sure this is understood. Learn what an IDN domain is, how the transfer process works, and most importantly insist on escrow.
- Starting a negotiation: Try the website, professionals will usually have a landing page with instructions on making an offer(their own or on a third party platform like Flippa, Sedo, GoDaddy Auctions, etc.) or alternatively you can use the Who Is contact information (if public).
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