Domain Value - What Makes a Domain Name Premium?
Exact match words that name a product, service, industry or location
A one or two-word domain name that represents a large business category or geographic location will always command a premium price. Examples of this include: Computers.com, Chicago.com, Furniture.com, RunningShoes.com, Tickets.com etc. Names like this are often referred to as category defining domain names. Investors and end-user businesses are actively seeking this type of domain name for either investment or business use.
Short names and acronyms
Acronyms are always high in demand because they are easy to type and easy to remember. Two letter .com domains like AA.com and HA.com have a very high value, and three letter .com names like KLO.com are worth a significant sum as well. In fact, a two or three letter .com, if bought at the right price, will be a stable investment.
While there are a few exceptions to this rule, in order for a domain to be classified as a true premium name, it should be of the .com extension. There have been several solid historical sales in other TLDs such as Meet.me and Date.me, but most highly valued domain names are .com. As you will soon learn, there is a second Internet "land rush" occurring shortly. This expansion of the Internet will provide more choices for investors and businesses and we will offer you the opportunity to participate very soon. Feel free to contact us for more information.
One word branding names
Domain names such as Blue.com or Slide.com have value as a brand name for a corporation or business. Even though they don't name an exact product or service, these names are always in demand as branding assets. Companies are buying these names for their use because they are easy to remember and offer creative branding opportunities.
Domains with a high search volume
Premium domains typically name a word or term that is searched often in Google. The volume of searches can be found by using different domain tools available on the Internet. Heritage will provide this information for you when we hold our premium domain auctions. If a word or phrase is searched often in Google, there will be more advertisers competing for the eyeballs related to these searches. The exact match domain name for these highly searched phrases will have value.
Names with high advertiser competition
If you "Google" a product or service and you see a lot of high level advertisers competing for the traffic, then the exact match name in that space will have value. For example: If you Google "Mortgage" you will see many well-funded advertisers competing for pay per click traffic. Therefore, it can be assumed that Mortgage.com has big value. If this concept is unclear to you, give us a call and we will be happy to explain it further.
Use your intuition and common sense
You can analyze a name all day long and run metrics/tools/appraisals/comparisons but at the end of the day, ask yourself: Does this sound like a premium name? If the domain is ComputersForSale.info --- it's not a premium name. If the domain is Computers.com --- it is. TopRatedMortgageCompanies.net --- not a premium domain asset. Loans.com / Mortgages.com / Banking.com - all are premium names.
High traffic volume
Similar to physical real estate, virtual real estate becomes more valuable as the volume of traffic increases. If a domain name has a large amount of visitors, business can turn these people into profitable leads and sales. Several premium domain names have a high traffic count and this increases the potential value of the asset.