Value of Domain Name Explained at dot50

Every domain has its own value, based on the quality of the domain name. Before choosing a domain name and investing in it, it is worth finding out what the domain name is potentially worth. Nobody wants to pay more than the domain is actually worth, especially those planning to flip the domain at a later stage.

The actual valuation is not as easy as you might think, and finding ‘parallels’ with recent sales or similar names can be tricky. Just because one domain name happens to be valuable doesn’t necessarily mean another will be worth the same or similar, even if there is only one letter difference.

There is no automated appraisal system to tell you whether a domain name is valuable or whether it is worth less or more than you paid. Some domain names are worth $zero!

Let’s look at an example: Condos.com might be worth enough to buy your own condo, BestCondos.com certainly has some value, although not as much as the first example, and then you have BestCondoSales123.com which is worth nothing at all!

Why The Value of Domain Names are So Cheap @dot50?

You might be wondering at this point why domains at dot50 are so inexpensive, and the reason is because a lot of people are going to overestimate the resale price potential.

Investors rather than end users are the ones fueling the current hype, and some sellers are asking too much for their domains. At dot50, domains are acquired as inexpensively as possible. This is the same whether it is a premium aged domain, a hand-registered domain or a brand new one.

We value domain names based on a variety of factors, including different type options, theories and tools developed for value approximation for the keyword, keyword phrase, or other factors which influence the appeal of the domain name.

It is important to know the difference between a domain name which has value and one which is only worth its registration price. Bear in mind serious business domain names end in .com and they are spelled correctly and either make sense or have appeal by being distinctive or deliberately quirky. Moreover they are easy to pronounce and remember. Starting point is make sure you learn the Golden Rules for Choosing Clever Business Names.

To help you understand more about the potential value of your domain name, and discover more about how we determine domain value, take a look at the following guidelines.

Comparable Sales Analysis

This is a very important step in the valuation process. At dot50 we use NameBio.com to find ‘parallels’ with recent sales for the length and pattern of root keywords.

So let’s use SharesForum.com as an example and estimate it’s value based on comparable sales history.

 

sharesforum-shares1

When we are checking a 2-word domain name, we will always search the first keyword and then the second keyword separately ensuring that both keywords are searched in their specific position inside the name.

 

sharesforum-forum1

NameBio tells us, the average of the relevant sales of domains starting with “Shares” + ending in ‘Forum’ went for $1,380 which is a pretty accurate average. Now let’s take a look at other information as well.

The Importance of SEO

An exact match domain name offers a sure advantage for being ranked well in search results for your main keyword. If you are selling ceramic tiles, then the best domain name to choose might be CeramicTiles.com, since that is what people will be searching for online, and the exact words your potential customers will be typing into their search engine.

As well as exact match domain names, we also consider the monthly search volume for the keyword or keyword phrase, factoring that into the price.

If your domain is based on specific keywords, enter those keywords into Adwords Keyword Planner to find out their monthly search volume, then multiply by 12 to discover the yearly search volume. Now multiply that number by the Adwords ‘suggested bid’ or cost per click.

This will tell you what it would cost to advertise your new site for a year if everybody who searched for those keywords were to click on your ad. Not everyone is going to click the ad though, so take off about 25% to get a more accurate estimate (multiply the final figure by 0.25). This end result is the approximate domain name value.

So let’s go back to SharesForum.com and find out why that has a $8,580 value. Google Keyword Planner tells us the keyword phrase ‘shares forum’ has 1300 searches per month, and the cost per click on Adwords is $2.20. This means we calculate 1300 x $2.20 x 12 x 0.25 and get $8,580 in total as our valuation.

keyword-planner

If the domain you want to appraise has either exact match or partial keywords which you want to rank for, it is a good idea to look up the search volume of the keywords in order to discover the potential value of the domain name.

You can also use other methods to figure out the value of the domain if it has other positive attributes such as being brandable and/or unique.

Using Online Domain Valuation Tools

We use Estibot.com and tools like Epik.com to collect data from various sources so we can compare the results. Appraisal tools are based on algorithms which search for keywords, traffic and other factors. If a domain doesn’t possess any of those, the value is likely to be very low.

It is important to know that we use clever word play to craft unique domain names, and software is not as accurate as a human when determining the value of such a name. Although online domain valuation tools are useful for research purposes, they should not be used to determine the final buying or selling price.

Estibot values SharesForum.com at $340, however let’s use that figure in our next example. Using the 3 metrics we collected for this domain, we can work out:

($1,380 + $8,580 + $340) / 3 = $3,433.

That would be a fairly accurate figure for a 2016 domain name only sale, but remember these are just a few of the methods that can be used to estimate the value. There are other data points and statistics you can bring into the equation to come up with the most accurate value.

So you might be wondering why we have priced Sharesforum.com at only $1,495?

The answer is simple: we want to leave room for profits if you purchase this domain as an investor, and also support developers who are overpaying for new domains.

Valuing Brands without Software

A domain name can be valued based on similar sale history, keyword or keyword phrase popularity if applicable, brandability, length and pattern.

Software cannot be used to get an exact domain name valuation. Although some objective analysis is important, a lot of the characteristics in a domain name must be manually examined relative to your business and its goals. A domain with better development potential should be more valuable.

Placing an accurate domain valuation is not always easy. It isn’t something to be taken lightly and it’s not just a guessing game. If you want to become a profitable investor, you can either use the methods we have suggested here or save time and money by using dot50.

Types of Company Names: Which One is Right for Your Business?

An appealing and meaningful brand name is vital for any new or existing business. You will want your brand name to convey a clear and unique meaning to give your brand a solid identity and differentiate it from your competition. Choosing a great domain name allows you to clearly express your creativity, brand image and reflect exactly what your company is providing.

 

Where to Start

When first brainstorming domain names, you should ask yourself these questions: Do I need a generic name that will serve different purposes or do I want a specific name that becomes my brand? How am I going to drive traffic to my website?

If you intend to get most of your traffic from organic search results for specific topics, you might want to consider names that contain real words and phrases that will help in search engine optimization (SEO). However, if you intend on making your domain name your brand, as long as it is full of relevant content, it also has potential to rank well in search engines for specific keywords or phrases.

Opting for a descriptive domain name might be a good idea if you are relying on people typing in those matching keywords in order to find your website. If your marketing strategy involves paid advertising or paid link sharing from established websites or blogs, then you should strongly consider making your domain name a brand that is both unique and memorable.

Now, how do you decide on a brand name? Well, it takes both imagination and creativity. First, you want to have a clear picture of how your website will help your business special and interesting to visitors. Decide which features on your website are going to attract the most traffic by considering which of the features’ names would match up best with the products or services you are offering.

Descriptive or Literal Domain Names

A descriptive or literal domain name offers a clear, literal description of your website. This type of straightforward, domain name with sense ensures visitors to understand immediately what your company offers.

These kinds of domain names are usually for products or services but they can also be for categories, phrases, job titles, phrases, places, and even dictionary words. Having a strong descriptive.com domain name gives your website an instant boost in credibility. Consider Blogger.com, Cooks.com and TVGuide.com. Not only do they immediately indicate what you can expect to find on the site, but they also boost the credibility of your business.

Made-Up or Quirky Domain Names

Although it is fair to say a made-up domain name can offer a clean start for a new brand (as long as you can afford to market it to the public) not everyone is a fan. These domain names are usually easy to trademark since they are original but they might not be as easy to remember. Some examples of well-known, made-up domain names include Instagram.com, Taobao.com and Tumblr.com. Although these might sound less welcoming than literal domain names, or people might not know how to pronounce them, it is true they do suit some types of websites.

Suggestive Domain Names

These fall somewhere between made-up and descriptive domain names. While these domain names also give consumers an idea of the company’s product or service, they do so in a creative manner that sets them apart from completely descriptive domain names. In short, suggestive domain names bring the best of both worlds.

These domain names feature words or phrases that suggest the kind of quality with which the business wants to be seen as. They are memorable, easy to pronounce, and appealing to read. Also, some of them boast amazing logo designs. It might not be immediately obvious what the domain name means until you visit the site.

Take Pinterest.com for example. Someone who had never heard of it might not know what the company is all about, but when you realize it is a clever site about ‘pinning’ your ‘interests’ you can see how suggestive domain names can be a clever way of showing what your brand is all about and these are often easier to trademark than literal names.

Compound Domain Names

Online companies often like compound domain names because they combine two separate words, each of which can represent what the company offers. Two words joined together like this are often better received than totally made up names, and you can combine two ideas, concepts or words together to come up with something unique.

One of the words might be the name of the product or service you offer while the other might play a lesser role.

The numerous combinations of compound domain names make it easy for businesses to come up with their unique names. Interesting meanings can also be created by combining the originally separate words.

Some companies that have been successful with their compound domain names include TechCrunch.com, GoDaddy.com and MailChimp.com.

Phrase Domain Names

A phrase domain name follows the normal rules to make a phrase. These are able to clearly show the company’s product or service, and they sound natural too. This type of domain name can be longer than a compound name. Examples include StumbleUpon.com and WhatsApp.com.

Tweaked, Affixed and Blended Domain Names

Tweaked domain names consist of words that have been slightly modified but still convey the meaning of the word that it means to read. Sometimes, you will be able to find a good domain name that functions as the word itself but has been slightly changed.

Examples of this include Flickr, which doesn’t include the letter “e” found in flicker and Zune, a modified onomatopoeia. As long as people are able to recognize the original word, these domain names can hold rich meanings and be unique at the same time.

A blended domain name has two parts and one of those parts must be a recognizable part of a word, not the whole word. Microsoft is a combination of microcomputer and software. It is easy to remember, short and memorable, also boasting the advantages you get with a compound domain name. Take your time choosing a blended domain name though, because a poorly chosen one can be confusing or awkward.

Lastly, affixed names have new words that are created by adding prefixes or suffixes to existing words. For example, the company Biznik combined “biz” with the Yiddish suffix –nik (as in “beatnik”).

Now It’s Time to Create Your Own Domain Name

So now you know how many different types of domain name options there are, it is time to find out which is best for your brand. Brainstorm some ideas and decide whether you want to go for logical and literal, something blending more than one word together or something quirkier. You might like to turn to this article again to help you decide which domain name is the perfect fit and make sure you learn the Golden Rules for Choosing Clever Business Names.

Ensure your decision is the best one, and perhaps come up with a few different ideas so you can choose the one you like best. With a bit of luck your brand might become just as well-known as one of the examples we have mentioned in this article.

Clever Business Names: What Are The Golden Rules?

Coming up with clever business names aren’t easy. Make sure you invest in a great domain name and give your business the best possible start. Your domain name is often the first thing potential clients see, so you will want to showcase your brand and demonstrate credibility.

The name to choose depends on several factors including what your business offers, as well as your own style and personal preferences. You can be straightforward with your business name or a bit quirky. The name of your business not only creates the best impression, but it also shows you own the name and therefore are an authority on the subject.

Important Things to Consider

If you’re selling tents, for example, you won’t have much luck looking for tents.com or besttents.com because the more obvious ones were taken years ago. There are more domain names taken today than ever before, so not only does it pay to grab your domain name quick, but also to know some of the pitfalls to avoid as well as the tips to ensure your domain name works for you and business your way. Let’s take a look at some of the most important things you should think about before choosing your new domain name:

Always Go For a .Com Domain

Even if your desired domainname.com is taken, you shouldn’t settle for a .net or .info suffix and don’t get tricked into a new generic top-level domain when .com is still the best bet. If you don’t own the .com extension of your domain, your competitors will get the juice of the traffic.

It Must Make Sense

SummerJackets.com is a great domain name example, as opposed to JacketsSummer.com which is not. The first example is powerful and logical while the second includes the same words but is probably owned by someone who was too late to buy the first and settled for second best instead. It is vital to select the best domain name for your company because once it’s registered, it’s yours.

Domain Quality

The chief metrics you need to consider are exact match domains, aged domains, short and memorable ones and high search volumes. Don’t underestimate aged domain names because a lot of high-end ones were registered a long time ago so you probably won’t find anything of similar quality now they’re taken. Avoid anything with numbers (unless relevant to your brand) or hyphens. Not only can people forget about those when trying to locate your URL but they also don’t look professional. Compare BestBostonLaptops.com to Best-Boston-Laptops.com and you will agree the first is catchier and looks more professional. Someone looking for the second will likely forget the hyphens and immediately end up in the competitor’s web shop, and who wants to send their traffic to a competitor?

Creative and Clever Domain Names

A domain name doesn’t have to be basic. You can get inventive with clever quotes or spellings, pick something industry-specific that would appeal to an industry insider, or choose something funny or cute. Pair such a name with real-world intelligence to come up with a great unique domain name, and take your time doing this. Why not brainstorm with a friend?

Something Distinctive

An exact match or partial match isn’t necessarily going to be the best domain to choose. Something distinctive with just 5 or 6 letters might be perfect for your needs. Consider Liquid Plumr or HUVr. These words are spelt differently than you’d expect but they are unique identifiers. That means people can look for you using the distinctive spelling and it also means you can get a trademark more easily. And it’s easier to find quirky, unusual domain names like these. Now this isn’t the case for every business. A more corporate name might be a better match for you.

Keep It User-Friendly

If your business name is easy to remember, that means you don’t need to spend so much money on marketing it. Use strong keywords or made-up words to come up with something that is going to stick in customers’ minds after hearing or reading it once.

Alliteration is always a good idea, and that means words beginning with the same letter, such as Pay Pal or Dunkin Donuts. Not only does this sound cool and classic, but it also means you don’t have to spend as much on advertising or marketing because the name will stick in people’s minds.

You might think the easiest to remember domain name is the shortest one but that isn’t always the case. Sometimes a clever domain name is easier to remember and might describe your brand better (and get more traffic) than short but hard to remember ones.

Use something that is smooth and easy to pronounce. MinuteMade.com is smooth and easy to remember, but switch it to MinutesMade.com or MadeInJustAMinute.com and you are only going to confuse people by over-complicating your domain name for no reason.

See How It Works

Buying a domain name and then finding down the line it doesn’t work just means you’ve wasted time and money. It would be better to ask your friends if they can spell and pronounce it. Tell different people what you want your business name to be and if half of them aren’t sure how to say or spell it, or what it means, that means you need to rethink.

A Word about Trademarks

Trademarks are used to let consumers know who is behind a service or product, and also to prevent and marketplace confusion. Let’s look at an example. Beanies are a type of headwear and it’s also the name of a UK coffee company. There is very little chance of the two of these getting confused with one another because they are so different.

A distinctive, unique domain name might not indicate exactly what your business offers. Before choosing a domain name, find out whether a similar name or a variation of it is already trademarked, using the US Patent and Trademark Office’s search tool.

If you want to do something different with the business name than what the previous owner did, you should be able to trademark it if these conditions are met:

1. It is not similar enough to any other brands to cause confusion.
2. There are no unregistered, common law trademark holders using that trademark and still trading today.
3. It is not generic or descriptive (for example, it’s hard to trademark Computers.com because you are probably selling computers and someone else had likely already trademarked this for computer selling.
4. No famous brand is diluted (for example, CocaColaDrink.com would quickly get you sued by the Coca Cola company).
5. The classification of use or your name and description are not the same as other non-abandoned registered trademarked companies which have the same name.

If all of those conditions are met, you can apply to register the trademark, although there are no guarantees.

So…You’re Almost Ready to Get Your Clever Domain Name

Now you know not only how to pick a clever business name and domain name, but how to make sure it’s not already trademarked and how to ensure it’s the very best choice for your business.

To recap, think about a domain name you like. Consider what your business offers. Does the domain name you are thinking about make sense or do you want something a bit quirky to make people thing?

Does it reflect a real word, place, thing or phrase? Is it confusingly similar to an existing brand you know about? Is it simple to pronounce and spell? Is it hyphen-free? Play with different keyword combinations to find out which is the catchiest and easiest to remember.

You don’t have to stick to all these rules, but ensure the domain name you choose not only sounds good and works for your company, but also feels right to you. Once you have a killer domain name in mind, make sure you grab it before someone else does!

Reduce your lookup times and save money by using dot50 to find the perfect domain name…