THE VALUE OF A DOMAIN NAME
Every week, millions of dollars in domain names are bought and sold on the aftermarket. The importance and value of generic, exact-match keyword domain names in creating an effective online presence has long been documented. As the .COM namespace has become increasingly crowded and saturated in the last two decades, so too have the value of short, brandable and keyword domain names sky rocketed.
There are numerous variables that contribute to the real and perceived value of a domain name. In real terms, type-in traffic and the Pay per Click (PPC) of keywords in a domain name represent tangible indicators of a domain’s value. Google Keyword Planner enables users to examine popularity and PPC of specific keyword terms.
Another useful reference in determining a domain’s value is historic sales data. Namebio provides an extensive record of over a billion dollars in previously recorded sales and is searchable by keyword. Other factors such as perceived future relevance (for e.g. emerging tech trends), or brandability can further impact on the value of a domain name.
Domains play a critical role in Search Engine Optimization and Google PageRank. This applies equally to legacy, as well as the new gTLD domains. Recent studies even indicate better performance of new gTLDs in SEO over their .COM counterparts in certain use cases, as well as significantly reduced Google Adwords campaign costs.